1
, All Chapters
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Accounting Information Systems, 16e (Romney) nw nw nw nw
Chapter 1 Conceptual Foundations of Accounting Information Systems
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1 Distinguish data from information, discuss the characteristics of useful information, and
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explain how to determine the value of information.
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1) Which of the following statements below shows the contrast between data and information?
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A) Data is the primary output of an accounting information system.
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B) Information is the primary output of an accounting information system.
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C) Data is more useful in decision making than information.
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D) Data and information are the sam
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e. Answer: B
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy n w
AACSB: Analytical Thinking nw
2) When a subsystem's goals are inconsistent with the goals of another subsystem or wit
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h the system as a whole, it creates
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A) system inconsistence. nw
B) system conflict. nw
C) goal inconsistence. nw
D) goal conflict nw
.
Answer: D n w n w
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy n w
AACSB: Analytical Thinking nw
3) When a subsystem achieves its goals while contributing to the organization's overall goal,
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wit is called
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A) system match. nw
B) system congruence. nw
C) goal congruence. nw
D) goal match nw
. Answer: C
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy n w
AACSB: Analytical Thinking nw
2
,4) Information is best described as nw nw nw nw
A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as dat
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a.
Answer: B n w n w
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy
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AACSB: Analytical Thinking nw
5) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value cha
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in. Answer: C
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Moderate
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AACSB: Analytical Thinking nw
6) An accounting information system (AIS) processes
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nw nw nw nw .
A) data; information nw
B) data; transactions nw
C) information; data nw
D) data; benefit nw
s Answer: A
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy
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AACSB: Analytical Thinking nw
7) information reduces uncertainty, improves decision makers' ability to ma nw nw nw nw nw nw nw nw
ke predictions, or confirms expectations.
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A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
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C
Concept: Information needs and business processes
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Objective: Learning Objective 1 n w nw nw
Difficulty: Easy n w n w
AACSB: Analytical Thinking nw
3
, 8) Information that is free from error or bias and faithfully represents the events or activiti
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es of the organization is
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A) relevant.
B) accurate.
C) verifiable.
D) timely. nw
Answer: n w
B
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy
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AACSB: Analytical Thinking nw
9) Information that does not omit important aspects of the underlying events or activities t
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hat it measures is
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A) complete.
B) available.
C) relevant.
D) timely. nw
Answer: n w
A
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
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y: Easy
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AACSB: Analytical Thinking nw
10) Information is nw nw
when two knowledgeable people independently produce the same information.
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A) verifiable
B) relevant
C) accurate
D) complete
Answer:
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A
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
4
, All Chapters
nw nw
Accounting Information Systems, 16e (Romney) nw nw nw nw
Chapter 1 Conceptual Foundations of Accounting Information Systems
nw nw nw nw nw nw
1 Distinguish data from information, discuss the characteristics of useful information, and
n w nw nw nw nw nw nw nw nw nw nw nw
explain how to determine the value of information.
nw nw nw nw nw nw nw
1) Which of the following statements below shows the contrast between data and information?
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A) Data is the primary output of an accounting information system.
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B) Information is the primary output of an accounting information system.
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C) Data is more useful in decision making than information.
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D) Data and information are the sam
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e. Answer: B
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Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy n w
AACSB: Analytical Thinking nw
2) When a subsystem's goals are inconsistent with the goals of another subsystem or wit
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h the system as a whole, it creates
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A) system inconsistence. nw
B) system conflict. nw
C) goal inconsistence. nw
D) goal conflict nw
.
Answer: D n w n w
Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy n w
AACSB: Analytical Thinking nw
3) When a subsystem achieves its goals while contributing to the organization's overall goal,
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wit is called
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A) system match. nw
B) system congruence. nw
C) goal congruence. nw
D) goal match nw
. Answer: C
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Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy n w
AACSB: Analytical Thinking nw
2
,4) Information is best described as nw nw nw nw
A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as dat
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a.
Answer: B n w n w
Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
5) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value cha
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in. Answer: C
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Moderate
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AACSB: Analytical Thinking nw
6) An accounting information system (AIS) processes
nw nw nw nw nw nw to provide users with
nw nw nw nw .
A) data; information nw
B) data; transactions nw
C) information; data nw
D) data; benefit nw
s Answer: A
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Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
7) information reduces uncertainty, improves decision makers' ability to ma nw nw nw nw nw nw nw nw
ke predictions, or confirms expectations.
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A) Timely
B) Accurate
C) Relevant
D) Complete
Answer:
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C
Concept: Information needs and business processes
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Objective: Learning Objective 1 n w nw nw
Difficulty: Easy n w n w
AACSB: Analytical Thinking nw
3
, 8) Information that is free from error or bias and faithfully represents the events or activiti
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es of the organization is
nw nw nw nw
A) relevant.
B) accurate.
C) verifiable.
D) timely. nw
Answer: n w
B
Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
9) Information that does not omit important aspects of the underlying events or activities t
nw nw nw nw nw nw nw nw nw nw nw nw nw
hat it measures is
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A) complete.
B) available.
C) relevant.
D) timely. nw
Answer: n w
A
Concept: The concept of information O
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bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
10) Information is nw nw
when two knowledgeable people independently produce the same information.
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A) verifiable
B) relevant
C) accurate
D) complete
Answer:
nw n w
A
Concept: The concept of information O
n w nw nw nw nw
bjective: Learning Objective 1 Difficult
n w nw nw nw
y: Easy
n w
AACSB: Analytical Thinking nw
4
