Test Bank – Accounting Information Systems by Romney, Steinbart, Summers & Wood | Complete
Chapters 1-24 | Edition 15 (Verified Resource)
📚 Content Outline of This Test Bank (Chapter-Wise)
Based on the 15th Edition table of contents:
Part Chapter Title
Part I: Conceptual Foundations of Accounting
1 Accounting Information Systems: An Overview
Information Systems
Overview of Transaction Processing and Enterprise
2
Resource Planning Systems
3 Systems Documentation Techniques
Part II: Data Analytics 4 Relational Databases
5 Introduction to Data Analytics in Accounting
6 Transforming Data
7 Data Analysis and Presentation
Part III: Control of Accounting Information
8 Fraud and Errors
Systems
9 Computer Fraud and Abuse Techniques
10 Control and Accounting Information Systems
11 Controls for Information Security
12 Confidentiality and Privacy Controls
13 Processing Integrity and Availability Controls
Part IV: Accounting Information Systems
14 The Revenue Cycle: Sales to Cash Collections
Applications
15 The Expenditure Cycle: Purchasing to Cash Disbursements
16 The Production Cycle
17 The Human Resources Management and Payroll Cycle
18 General Ledger and Reporting System
Part V: The REA Data Model 19 Database Design Using the REA Data Model
20 Implementing an REA Model in a Relational Database
21 Special Topics in REA Modeling
Part VI: The Systems Development Process 22 Introduction to Systems Development and Systems Analysis
23 AIS Development Strategies
24 Systems Design, Implementation, and Operation
, Chapter 1 Accounting Information Systems: An Overview
1.1 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 output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) 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
3) 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
4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or activities
of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
7) Information that does not omit important aspects of the underlying events or activities
that it measures is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
9) Data must be converted into information to be considered useful and meaningful for
decision making. There are six characteristics that make information both useful and
meaningful. If information is free from error or bias and accurately represents the events or
activities of the organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D
10) Inventory information is provided in real time by a firm's accounting information system.
The accuracy of this information is questionable, however, since the production manager
often reports stock outs of components that the system indicates are in stock. Which of the
following characteristics of useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: B
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of
the firm recently changed hands and the new owners are conducting an audit of the financial
records. The audit has been unable to reproduce financial reports that were prepared by Ms.
Metrejean. While there is no evidence of wrongdoing, the auditors are concerned that the
discrepancies might contribute to poor decisions. Which of the following characteristics of
useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: F
12) In 2003, Singh Manufacturing implemented a Web-based information system that allows
all employees to access mission-critical information. The intention was to increase production
efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and
costs increased. Shaman Gupta, the director of information technology services, asked Ashlee
Wells to come in and talk with him about the system. Ashlee is a long-time employee of
Singh, and her opinion is valued by her peers and by her supervisor.
"So Ashlee, how's it going down there in the shop?"
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan
production. Now, we got that computer system. Most of us can't figure out how to use it to do
our jobs. Is there some way to print out a pick list?"
3
Chapters 1-24 | Edition 15 (Verified Resource)
📚 Content Outline of This Test Bank (Chapter-Wise)
Based on the 15th Edition table of contents:
Part Chapter Title
Part I: Conceptual Foundations of Accounting
1 Accounting Information Systems: An Overview
Information Systems
Overview of Transaction Processing and Enterprise
2
Resource Planning Systems
3 Systems Documentation Techniques
Part II: Data Analytics 4 Relational Databases
5 Introduction to Data Analytics in Accounting
6 Transforming Data
7 Data Analysis and Presentation
Part III: Control of Accounting Information
8 Fraud and Errors
Systems
9 Computer Fraud and Abuse Techniques
10 Control and Accounting Information Systems
11 Controls for Information Security
12 Confidentiality and Privacy Controls
13 Processing Integrity and Availability Controls
Part IV: Accounting Information Systems
14 The Revenue Cycle: Sales to Cash Collections
Applications
15 The Expenditure Cycle: Purchasing to Cash Disbursements
16 The Production Cycle
17 The Human Resources Management and Payroll Cycle
18 General Ledger and Reporting System
Part V: The REA Data Model 19 Database Design Using the REA Data Model
20 Implementing an REA Model in a Relational Database
21 Special Topics in REA Modeling
Part VI: The Systems Development Process 22 Introduction to Systems Development and Systems Analysis
23 AIS Development Strategies
24 Systems Design, Implementation, and Operation
, Chapter 1 Accounting Information Systems: An Overview
1.1 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 output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) 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
3) 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
4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or activities
of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
7) Information that does not omit important aspects of the underlying events or activities
that it measures is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
9) Data must be converted into information to be considered useful and meaningful for
decision making. There are six characteristics that make information both useful and
meaningful. If information is free from error or bias and accurately represents the events or
activities of the organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D
10) Inventory information is provided in real time by a firm's accounting information system.
The accuracy of this information is questionable, however, since the production manager
often reports stock outs of components that the system indicates are in stock. Which of the
following characteristics of useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: B
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of
the firm recently changed hands and the new owners are conducting an audit of the financial
records. The audit has been unable to reproduce financial reports that were prepared by Ms.
Metrejean. While there is no evidence of wrongdoing, the auditors are concerned that the
discrepancies might contribute to poor decisions. Which of the following characteristics of
useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: F
12) In 2003, Singh Manufacturing implemented a Web-based information system that allows
all employees to access mission-critical information. The intention was to increase production
efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and
costs increased. Shaman Gupta, the director of information technology services, asked Ashlee
Wells to come in and talk with him about the system. Ashlee is a long-time employee of
Singh, and her opinion is valued by her peers and by her supervisor.
"So Ashlee, how's it going down there in the shop?"
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan
production. Now, we got that computer system. Most of us can't figure out how to use it to do
our jobs. Is there some way to print out a pick list?"
3
