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

TestBankforAccountingInformationSystems,1st
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Edition by Arline A. Savage
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TESTBANKFORACCOUNTINGINFORMATIONSYSTEM 1ST
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EDITION BY ARLINE SAVAGE A+
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Chapter 01: Accounting as Information h h h h




1) Accounting communicates to stakeholders h h h




A) minimallyrequired public financial data. h h h h




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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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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hComprehension AICPA: AC: Reporting h h h




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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hDiff: 1
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LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Communication Bloom's:
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hComprehension AICPA: AC: Reporting h h h




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




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




C) Management teams use economic and accounting data together to make decisions.
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,TestBankforAccountingInformationSystems,1st
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Edition by Arline A. Savage
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D) Alloftheseanswerchoices arecorrect.Answer:D
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hDiff: 1
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LearningObjective: 1.1 Explain how accountingaffects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
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4) Which statement is TRUE? h h h




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




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




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




D) Accountantsfocusondebitsandcredits,notbusinessactivities.Answer:C Diff: h h h h h h h h h h h




h1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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hComprehension AICPA: N/A h h




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 h h h h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Knowledge
AICPA: AC: Systems and Process Management
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,TestBankforAccountingInformationSystems,1st
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Edition by Arline A. Savage
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6) Input to an information system consists of
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A) rawand unorganized data.
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B) hardwareand software. h h




C) reportedinformation. h




D) processed data. h




Answer: A h




Diff: 1h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Knowledge
AICPA: AC: Systems and Process Management
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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. h h h h h




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




D) Output is information collected from users. Answer: B
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Diff: 1h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Comprehension
AICPA: AC: Systems and Process Management
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8) Which statement concerning data is TRUE?h h h h h




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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, TestBankforAccountingInformationSystems,1st
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Edition by Arline A. Savage
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Diff: 1 h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Comprehension
AICPA: AC: Systems and Process Management
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9) Which ofthe followingactivities would NOTresult in a transaction in an accounting
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hinformation system? h




A) Sell goods to a customer on account
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B) Purchase supplies on credit h h h




C) Prepayfor six months of insurance h h h h h




D) ReceiveacustomerorderAnswer:D h h h h h




hDiff: 2 h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
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h Application
AICPA: AC: Systems and Process Management
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10) Whichofthefollowingactivitiesresults inatransactionan accountinginformation
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hsystem?
A) Sell goods to a customer
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B) Submit an order to a vendor h h h h h




C) Create estimates for a customer
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D) ReceiveacustomerorderAnswer:A h h h h h




hDiff: 2 h




LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
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SectionReference: Whyis Accounting Information Important? AACSB: Analytic
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