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Accounting Information Systems, 14th Edition by Romney Steinbart
Chapter 1-13
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged application
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: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
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
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged application
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) Reliable
C) Relevant
D) Complete
Answer: C
Concept: Information needs and business processes
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
8) 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.
,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) accessible.
C) relevant.
D) timely.
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
10) Information is when two knowledgeable people independently produce the same
information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
11) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven 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.
Answer: D
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
12) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If
information can help reduce uncertainty, improves decision making, or confirms or corrects prior
expectations, it is representative of the characteristic of
, A) reliability.
B) relevance.
C) complete.
D) truthful.
Answer: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged, management, economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical
application
13) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If the
same information can be reproduced by two independent and knowledgeable people, it is
representative of the characteristic of
A) reliability.
B) relevance.
C) verifiability.
D) truthful.
Answer: C
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
14) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If the
information is free from error or bias, it is representative of the characteristic of
A) reliability.
B) relevance.
C) verifiability.
D) truthful.
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
15) Inventory information for Sun Corp. is provided in real time by a firm's accounting
information system. However, the accuracy of this information is questionable. Many store
managers often report 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
Accounting Information Systems, 14th Edition by Romney Steinbart
Chapter 1-13
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged application
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: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
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
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged application
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) Reliable
C) Relevant
D) Complete
Answer: C
Concept: Information needs and business processes
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
8) 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.
,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) accessible.
C) relevant.
D) timely.
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged
10) Information is when two knowledgeable people independently produce the same
information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
11) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven 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.
Answer: D
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
12) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If
information can help reduce uncertainty, improves decision making, or confirms or corrects prior
expectations, it is representative of the characteristic of
, A) reliability.
B) relevance.
C) complete.
D) truthful.
Answer: B
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
understanding of business principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. Students are
encouraged, management, economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical
application
13) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If the
same information can be reproduced by two independent and knowledgeable people, it is
representative of the characteristic of
A) reliability.
B) relevance.
C) verifiability.
D) truthful.
Answer: C
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
14) Data must be converted into information to be considered useful and meaningful for decision
making. There are seven characteristics that make information both useful and meaningful. If the
information is free from error or bias, it is representative of the characteristic of
A) reliability.
B) relevance.
C) verifiability.
D) truthful.
Answer: A
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
15) Inventory information for Sun Corp. is provided in real time by a firm's accounting
information system. However, the accuracy of this information is questionable. Many store
managers often report 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
