Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney

Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney

All Chapters
Accounting Information Systems, 16e (Romney)
Chapter 1 Conceptual Foundations of Accounting Information Systems

1 Distinguish data from information, discuss the characteristics of useful information, and
explain how to determine the value of information.

1) Which of the following statements below shows the contrast between data and information?
A) Data is the primary output of an accounting information system.
B) Information is the primary output of an accounting information system.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the
system as a whole, it creates
A) system inconsistence.
B) system conflict.
C) goal inconsistence.
D) goal conflict.
Answer: D
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is
called
A) system match.
B) system congruence.
C) goal congruence.
D) goal match.
Answer: C
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking




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,4) Information is best described as
A) raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Answer: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

5) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Answer: C
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking

6) An accounting information system (AIS) processes to provide users with .
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

7) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer: C
Concept: Information needs and business processes
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking




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,8) Information that is free from error or bias and faithfully represents the events or activities of
the organization is
A) relevant.
B) accurate.
C) verifiable.
D) timely.
Answer: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

9) Information that does not omit important aspects of the underlying events or activities that it
measures is
A) complete.
B) available.
C) relevant.
D) timely.
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

10) Information is when two knowledgeable people independently produce the same
information.
A) verifiable
B) relevant
C) accurate
D) complete
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking




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, 11) Datas2musts2bes2converteds2intos2informations2tos2bes2considereds2usefuls2ands2meaningfuls2
fors2decisions2making.s2Theres2ares214s2characteristicss2thats2makes2informations2boths2usefuls2
ands2meaningful.s2Ifs2informations2iss2frees2froms2errors2ors2biass2ands2faithfullys2representss2t
hes2eventss2ors2activitiess2ofs2the
organization,s2its2iss2representatives2ofs2thes2characteristics2of
A) relevancy.
B) timeliness.
C) understandability.
D) accuracy.
Answer:s 2 s
2D
Concept:s 2 Thes2concepts2ofs2information
s2Objective:s 2 Learnings2Objectives21s2Di
fficulty:s 2 Easy
AACSB: Analyticals2Thinking

12) Datas2musts2bes2converteds2intos2informations2tos2bes2considereds2usefuls2ands2meaningfuls2
fors2decisions2making.s2Theres2ares214s2characteristicss2thats2makes2informations2boths2usefuls2
ands2meaningful.s2Ifs2informations2cans2helps2reduces2uncertainty,s2improvess2decisions2making,
s2ors2confirmss2ors2correctss2priors2expectations,s2its2iss2representatives2ofs2thes2characteristics2o
f
A) objectivity.
B) relevance.
C) completeness.
D) truthfulness.
s2Answer:s 2 B
Concept:s 2 Thes2concepts2ofs2information
s2Objective:s 2 Learnings2Objectives21s2Di
fficulty:s 2 Easy
AACSB: Analyticals2Thinking

13) Datas2musts2bes2converteds2intos2informations2tos2bes2considereds2usefuls2ands2meaningfuls2
fors2decisions2making.s2Theres2ares214s2characteristicss2thats2makes2informations2boths2usefuls2
ands2meaningful.s2Ifs2thes2sames2informations2cans2bes2reproduceds2bys2twos2independents2and
s2knowledgeables2people,s2its2iss2representatives2ofs2thes2characteristics2of
A) accuracy.
B) relevance.
C) verifiability.
D) truthfulness.
s2Answer:s 2 C
Concept:s 2 Thes2concepts2ofs2information
s2Objective:s 2 Learnings2Objectives21s2Di
fficulty:s 2 Easy
AACSB: Analyticals2Thinking




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