Accounting Information Systems, 16e (Romney)
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1
,Chapter 1 xz Conceptual Foundations of Accounting Information Systems
xz xz xz xz xz
1 Distinguish data from information, discuss the characteristics of useful information, and ex
x z xz xz xz xz xz xz xz xz xz xz xz
plain how to determine the value of information.
xz xz xz xz xz xz xz
1) Which of the following statements below shows the contrast between data and information?
xz xz xz xz xz xz xz xz xz xz xz xz
A) Data is the primary output of an accounting information system.
xz xz xz xz xz xz xz xz xz
B) Information is the primary output of an accounting information system.
xz xz xz xz xz xz xz xz xz
C) Data is more useful in decision making than information.
xz xz xz xz xz xz xz xz
D) Data and information are the same.
xz xz xz xz xz
Answer: B
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with t
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
he system as a whole, it creates
xz xz xz xz xz xz
A) system inconsistence. xz
B) system conflict. xz
C) goal inconsistence. xz
D) goal conflict. xz
Answer: D x z x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
is calledxz
A) system match. xz
B) system congruence. xz
C) goal congruence. xz
D) goal match. xz
Answer: C
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
2
,4) Information is best described as xz xz xz xz
A) raw facts about transactions.
xz xz xz
B) data that has been organized and processed so that it is meaningful to the user.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
C) facts that are useful when processed in a timely manner.
xz xz xz xz xz xz xz xz xz
D) the same thing as data
xz xz xz xz
.
Answer: B x z x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
5) The value of information can best be determined by
xz xz xz xz xz xz xz xz
A) its usefulness to decision makers.
xz xz xz xz
B) its relevance to decision makers.
xz xz xz xz
C) the benefits associated with obtaining the information minus the cost of producing it.
xz xz xz xz xz xz xz xz xz xz xz xz
D) the extent to which it optimizes the value chain
xz xz xz xz xz xz xz xz
. Answer: C
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Moderate
z
AACSB: Analytical Thinking xz
6) An accounting information system (AIS) processes
xz xz xz xz xz xz to provide users with
xz xz xz xz .
A) data; information xz
B) data; transactions xz
C) information; data xz
D) data; benefits xz
Answer: A
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
7) information reduces uncertainty, improves decision makers' ability to mak xz xz xz xz xz xz xz xz
e predictions, or confirms expectations.
xz xz xz xz
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
xz x z
C
Concept: Information needs and business processes O
x z xz xz xz xz xz
bjective: Learning Objective 1
x z xz xz
Difficulty: Easy x z x z
AACSB: Analytical Thinking xz
3
, 8) Information that is free from error or bias and faithfully represents the events or activities
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
of the organization is
xz xz xz
A) relevant.
B) accurate.
C) verifiable.
D) timely. xz
Answer: x z
B
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
9) Information that does not omit important aspects of the underlying events or activities that
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
it measures is
xz xz
A) complete.
B) available.
C) relevant.
D) timely. xz
Answer: x z
A
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
10) Information is xz xz
when two knowledgeable people independently produce the same information.
xz xz xz xz xz xz xz xz
A) verifiable
B) relevant
C) accurate
D) complete
Answer:
xz x z
A
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
4
xz xz xz xz
1
,Chapter 1 xz Conceptual Foundations of Accounting Information Systems
xz xz xz xz xz
1 Distinguish data from information, discuss the characteristics of useful information, and ex
x z xz xz xz xz xz xz xz xz xz xz xz
plain how to determine the value of information.
xz xz xz xz xz xz xz
1) Which of the following statements below shows the contrast between data and information?
xz xz xz xz xz xz xz xz xz xz xz xz
A) Data is the primary output of an accounting information system.
xz xz xz xz xz xz xz xz xz
B) Information is the primary output of an accounting information system.
xz xz xz xz xz xz xz xz xz
C) Data is more useful in decision making than information.
xz xz xz xz xz xz xz xz
D) Data and information are the same.
xz xz xz xz xz
Answer: B
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with t
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
he system as a whole, it creates
xz xz xz xz xz xz
A) system inconsistence. xz
B) system conflict. xz
C) goal inconsistence. xz
D) goal conflict. xz
Answer: D x z x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
is calledxz
A) system match. xz
B) system congruence. xz
C) goal congruence. xz
D) goal match. xz
Answer: C
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
2
,4) Information is best described as xz xz xz xz
A) raw facts about transactions.
xz xz xz
B) data that has been organized and processed so that it is meaningful to the user.
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
C) facts that are useful when processed in a timely manner.
xz xz xz xz xz xz xz xz xz
D) the same thing as data
xz xz xz xz
.
Answer: B x z x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
5) The value of information can best be determined by
xz xz xz xz xz xz xz xz
A) its usefulness to decision makers.
xz xz xz xz
B) its relevance to decision makers.
xz xz xz xz
C) the benefits associated with obtaining the information minus the cost of producing it.
xz xz xz xz xz xz xz xz xz xz xz xz
D) the extent to which it optimizes the value chain
xz xz xz xz xz xz xz xz
. Answer: C
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Moderate
z
AACSB: Analytical Thinking xz
6) An accounting information system (AIS) processes
xz xz xz xz xz xz to provide users with
xz xz xz xz .
A) data; information xz
B) data; transactions xz
C) information; data xz
D) data; benefits xz
Answer: A
xz x z
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
7) information reduces uncertainty, improves decision makers' ability to mak xz xz xz xz xz xz xz xz
e predictions, or confirms expectations.
xz xz xz xz
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
xz x z
C
Concept: Information needs and business processes O
x z xz xz xz xz xz
bjective: Learning Objective 1
x z xz xz
Difficulty: Easy x z x z
AACSB: Analytical Thinking xz
3
, 8) Information that is free from error or bias and faithfully represents the events or activities
xz xz xz xz xz xz xz xz xz xz xz xz xz xz xz
of the organization is
xz xz xz
A) relevant.
B) accurate.
C) verifiable.
D) timely. xz
Answer: x z
B
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
9) Information that does not omit important aspects of the underlying events or activities that
xz xz xz xz xz xz xz xz xz xz xz xz xz xz
it measures is
xz xz
A) complete.
B) available.
C) relevant.
D) timely. xz
Answer: x z
A
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
10) Information is xz xz
when two knowledgeable people independently produce the same information.
xz xz xz xz xz xz xz xz
A) verifiable
B) relevant
C) accurate
D) complete
Answer:
xz x z
A
Concept: The concept of information Ob
x z xz xz xz xz
jective: Learning Objective 1 Difficulty:
x z xz xz xz
x Easy
z
AACSB: Analytical Thinking xz
4
