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Accounting information system Accounting by Marshall B. Romney & Paul John Steinbart
Chapter 1-20 Answers are at the End of Each Chapter
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
Chapter 1 (new version)
MULTIPLE CHOICE
1. A set of two or more interrelated components that interact to achieve a goal is:
a) A system
b) An accounting information system
c) Data
d) Mandatory information
2. This results when a subsystem achieves its goals while contributing to the
organization's overall goal.
a) Goal conflict
b) Goal congruence
c) Value of information
d) Systems congruence
, Goal conflict may result when
e) A decision or action of a subsystem is inconsistent with the system as a whole.
f) A subsystem achieves its goals while contributing to the organization's overall
goal.
g) Duplicate recording, storage and processes are eliminated.
h) The data exceeds the amount the human mind can absorb and process.
3. Facts that are collected, recorded, stored and processed by an information system
a) Information
b) Data
c) Systems
d) Mandatory information
4. Information is
a) What happens when the data exceeds the amount the human mind can absorb.
b) The benefit produced by the information minus the cost of producing it.
c) Facts that are collected, recorded, stored, and processed by an information system.
d) Data that have been organized and processed to provide meaning to a user.
5. Data are
a) facts entered, stored, and processed by an information system.
b) processed output that is useful to decision makers.
c) another word for information.
d) quantitative facts that are not qualitative by nature.
6. 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.
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged dividend distribution.
7. Information is
a) basically the same as data.
b) raw facts about transactions.
c) potentially useful facts when processed in a timely manner.
d) data that has been organized and processed so that it's meaningful.
8. Humans can absorb and process only so much information. Information
occurs when those limits are passed.
a) overload
b) excess
c) anxiety
d) discretion
9. The value of information can best be defined as
a) how useful it is to decision makers.
b) the benefits produced by possessing and using the information minus the cost of
producing it.
c) how relevant it is.
d) the extent to which it maximizes the value chain.
10. The benefit produced by the information minus the cost of producing it.
a) Goal congruence
b) Information
c) Information overload
d) Value of information
11. An accounting information system (AIS) processes to provide users with
.
a) data; information
b) data; transactions
c) information; data
d) data; benefits
12. How many components are found in an AIS?
a) three
b) four
c) five
d) six
13. An accounting information system in part consists of
a) People, hardware and programs.
b) Information, programs and computers.
c) People, procedures, data, software and information technology infrastructure.
d) Internal controls and accounting records.
, 14. Information that reduces uncertainty, improves decision makers' ability to make
predictions, or confirms or corrects their prior expectations, is said to be
a) Complete
b) Relevant
c) Reliable
d) Timely
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
15. Information that is free from error or bias and accurately represents the events or
activities of the organization is
a) Relevant
b) Reliable
c) Verifiable
d) Timely
16. 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
17. When two knowledgeable people acting independently each produce the same
information, this information is said to be
a) Complete
b) Relevant
c) Reliable
d) Verifiable
.#### 2. State and Local TaxesTax obligations vary significantly by state and locality.- **Nexus Considerations**: - Businesses must understand nexus—essentially, a connection to a state that creates tax
18. 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
19. The primary consideration when producing this type of information is that its benefits
exceeds its costs.
a) Discretionary information
b) Essential information
c) Mandatory information
d) Value of information
.#### 2. State and Local understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical
application. Students are encouraged of tax planning.### ConclusionUnderstanding the taxation of business entities is essential for effective financial management and compliance. With ongoing changes in legislation,
technology, and economic conditions, businesses must remain adaptable and informed. This comprehensive appr must pay self-employment taxes on their earnings.- **Distributions and Basis**: - When a partner receives a
distribution, it is
20. An AIS is a system of six interrelated components that interact to achieve a goal.
One of these components, which includes both manual and automated activities that
involve collecting, processing, and storing data, is known as
a) Information or data
, b) Procedures and instructions
c) Software
d) Information technology infrastructure
21. An accounting information system must be able to perform which of the following
tasks?
a) collect transaction data
b) process transaction data
c) provide adequate controls
d) all of the above
22. Which of the following is not an example of a common activity in an AIS?
a) buy and pay for goods and services
b) sell goods and services and collect cash
c) summarize and report results to interested parties
d) recording of sales calls for marketing purposes
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
and various regulations.- **C-Corporations**: - Taxed at the corporate rate, profits are taxed at the entity level, and dividends are taxed at the shareholder level. Corporations can reinvest profits to defer taxation, but shareholders
may face immediate tax consequences upon dividend distribution.
23. Which of the following is not one of the components of an AIS?
a) Internal controls and security measures
b) People
c) Procedures and instructions
d) Software and hardware
24. An AIS must be able to fulfill three important functions in any organization. One
such function is the collecting and storing of data about activities performed by the
organization. One group that relies on both the adequate collection and
transformation of data for decision-making purposes for an organization is
a) management.
b) interested outsiders.
c) competitors.
d) the government.
25. The primary objective of accounting is to
a) implement strong internal controls.
b) provide useful information to decision makers.
c) prepare financial statements.
d) ensure the profitability of an organization.
Accounting information system Accounting by Marshall B. Romney & Paul John Steinbart
Chapter 1-20 Answers are at the End of Each Chapter
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
Chapter 1 (new version)
MULTIPLE CHOICE
1. A set of two or more interrelated components that interact to achieve a goal is:
a) A system
b) An accounting information system
c) Data
d) Mandatory information
2. This results when a subsystem achieves its goals while contributing to the
organization's overall goal.
a) Goal conflict
b) Goal congruence
c) Value of information
d) Systems congruence
, Goal conflict may result when
e) A decision or action of a subsystem is inconsistent with the system as a whole.
f) A subsystem achieves its goals while contributing to the organization's overall
goal.
g) Duplicate recording, storage and processes are eliminated.
h) The data exceeds the amount the human mind can absorb and process.
3. Facts that are collected, recorded, stored and processed by an information system
a) Information
b) Data
c) Systems
d) Mandatory information
4. Information is
a) What happens when the data exceeds the amount the human mind can absorb.
b) The benefit produced by the information minus the cost of producing it.
c) Facts that are collected, recorded, stored, and processed by an information system.
d) Data that have been organized and processed to provide meaning to a user.
5. Data are
a) facts entered, stored, and processed by an information system.
b) processed output that is useful to decision makers.
c) another word for information.
d) quantitative facts that are not qualitative by nature.
6. 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.
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged dividend distribution.
7. Information is
a) basically the same as data.
b) raw facts about transactions.
c) potentially useful facts when processed in a timely manner.
d) data that has been organized and processed so that it's meaningful.
8. Humans can absorb and process only so much information. Information
occurs when those limits are passed.
a) overload
b) excess
c) anxiety
d) discretion
9. The value of information can best be defined as
a) how useful it is to decision makers.
b) the benefits produced by possessing and using the information minus the cost of
producing it.
c) how relevant it is.
d) the extent to which it maximizes the value chain.
10. The benefit produced by the information minus the cost of producing it.
a) Goal congruence
b) Information
c) Information overload
d) Value of information
11. An accounting information system (AIS) processes to provide users with
.
a) data; information
b) data; transactions
c) information; data
d) data; benefits
12. How many components are found in an AIS?
a) three
b) four
c) five
d) six
13. An accounting information system in part consists of
a) People, hardware and programs.
b) Information, programs and computers.
c) People, procedures, data, software and information technology infrastructure.
d) Internal controls and accounting records.
, 14. Information that reduces uncertainty, improves decision makers' ability to make
predictions, or confirms or corrects their prior expectations, is said to be
a) Complete
b) Relevant
c) Reliable
d) Timely
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
15. Information that is free from error or bias and accurately represents the events or
activities of the organization is
a) Relevant
b) Reliable
c) Verifiable
d) Timely
16. 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
17. When two knowledgeable people acting independently each produce the same
information, this information is said to be
a) Complete
b) Relevant
c) Reliable
d) Verifiable
.#### 2. State and Local TaxesTax obligations vary significantly by state and locality.- **Nexus Considerations**: - Businesses must understand nexus—essentially, a connection to a state that creates tax
18. 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
19. The primary consideration when producing this type of information is that its benefits
exceeds its costs.
a) Discretionary information
b) Essential information
c) Mandatory information
d) Value of information
.#### 2. State and Local understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical
application. Students are encouraged of tax planning.### ConclusionUnderstanding the taxation of business entities is essential for effective financial management and compliance. With ongoing changes in legislation,
technology, and economic conditions, businesses must remain adaptable and informed. This comprehensive appr must pay self-employment taxes on their earnings.- **Distributions and Basis**: - When a partner receives a
distribution, it is
20. An AIS is a system of six interrelated components that interact to achieve a goal.
One of these components, which includes both manual and automated activities that
involve collecting, processing, and storing data, is known as
a) Information or data
, b) Procedures and instructions
c) Software
d) Information technology infrastructure
21. An accounting information system must be able to perform which of the following
tasks?
a) collect transaction data
b) process transaction data
c) provide adequate controls
d) all of the above
22. Which of the following is not an example of a common activity in an AIS?
a) buy and pay for goods and services
b) sell goods and services and collect cash
c) summarize and report results to interested parties
d) recording of sales calls for marketing purposes
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
and various regulations.- **C-Corporations**: - Taxed at the corporate rate, profits are taxed at the entity level, and dividends are taxed at the shareholder level. Corporations can reinvest profits to defer taxation, but shareholders
may face immediate tax consequences upon dividend distribution.
23. Which of the following is not one of the components of an AIS?
a) Internal controls and security measures
b) People
c) Procedures and instructions
d) Software and hardware
24. An AIS must be able to fulfill three important functions in any organization. One
such function is the collecting and storing of data about activities performed by the
organization. One group that relies on both the adequate collection and
transformation of data for decision-making purposes for an organization is
a) management.
b) interested outsiders.
c) competitors.
d) the government.
25. The primary objective of accounting is to
a) implement strong internal controls.
b) provide useful information to decision makers.
c) prepare financial statements.
d) ensure the profitability of an organization.
