TEST BANK FOR ACCOUNTING INFORMATION SYSTEM 1ST EDITION BY ARLINE SAVAGE A+

Test Bank for Accounting Information Systems, 1st
Edition by Arline A. Savage
TESTBANKFORACCOUNTINGINFORMATIONSYSTEM 1ST
x x x x x x




x EDITION BY ARLINE SAVAGE A+ x x x x




Chapter 01: Accounting as Information x x x x




1) Accounting communicates to stakeholders x x x




A) minimallyrequired public financial data. x x x x




B) thefinancial outcomes of operating, investing, and financing activities.
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C) the sales strategyfor the operating, marketing, and sales activities.
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D) black andwhitedetails abouttheeconomics ofoperatingactivities.Answer: B Diff:
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x1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:Whyis Accounting Information Important? AACSB:Communication Bloom's:
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xComprehension AICPA: AC: Reporting x x x




2) Accountingcommunicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoices arecorrect.Answer:D
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xDiff: 1
x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Communication Bloom's:
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xComprehension AICPA: AC: Reporting x x x




3) In what waydo management teams use accounting data?
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A) Management teams use accounting data to make business decisions. x x x x x x x x




B) Management teams use accounting data to make and execute plans. x x x x x x x x x




C) Management teams use economic and accounting data together to make decisions.
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A+ Page 1

,Test Bank for Accounting Information Systems, 1st
Edition by Arline A. Savage
D) Alloftheseanswerchoices arecorrect.Answer:D
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xDiff: 1
x




LearningObjective: 1.1 Explain how accountingaffects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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x Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
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4) Which statement is TRUE?x x x




A) Accountingconsists of rigid black and white rules. x x x x x x x




B) Accountants crunch numbers, not make decisions. x x x x x




C) Accounting helps support a prosperous society. x x x x x




D) Accountantsfocusondebitsandcredits,notbusinessactivities.Answer:C Diff:
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x1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




xComprehension AICPA: N/A x x




5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) NetworkAnswer: C Diff: 1 x x x x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




x Knowledge
AICPA: AC: Systems and Process Management
x x x x x




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,Test Bank for Accounting Information Systems, 1st
Edition by Arline A. Savage
6) Input to an information system consists of
x x x x x x




A) rawand unorganized data.
x x x




B) hardwareand software. x x




C) reportedinformation. x




D) processed data. x




Answer: A x




Diff: 1x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




x Knowledge
AICPA: AC: Systems and Process Management
x x x x x




7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data. x x x x x




B) Output is information produced byprocessing data.
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C) Output is database facts and figures. x x x x x




D) Output is information collected from users. Answer: B
x x x x x x x




Diff: 1x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




x Comprehension
AICPA: AC: Systems and Process Management
x x x x x




8) Which statement concerning data is TRUE?
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A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
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C) Datais organized into understandable formats.
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D) Data is processed before being input into the information system. Answer: A
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, Test Bank for Accounting Information Systems, 1st
Edition by Arline A. Savage
Diff: 1 x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




x Comprehension
AICPA: AC: Systems and Process Management
x x x x x




9) Which ofthe followingactivities would NOTresult in a transaction in an accounting
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xinformation system? x




A) Sell goods to a customer on account
x x x x x x




B) Purchase supplies on credit x x x




C) Prepayfor six months of insurance
x x x x x




D) ReceiveacustomerorderAnswer:D x x x x x




xDiff: 2 x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
x x x x x x x x x




x Application
AICPA: AC: Systems and Process Management
x x x x x




10) Whichofthefollowingactivitiesresults inatransactionan accountinginformation
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xsystem?
A) Sell goods to a customer
x x x x




B) Submit an order to a vendor x x x x x




C) Create estimates for a customer
x x x x




D) ReceiveacustomerorderAnswer:A x x x x x




xDiff: 2 x




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
x x x x x x x x x x x x x x




SectionReference: Whyis Accounting Information Important? AACSB: Analytic
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