AllgChaptersgIncludedg⬛
g g ⬛
g g ⬛
AllgAnswersgIncludedg⬛
g⬛g⬛
g
TESTg BANKg FO
R
AccountinggInformationgSystems,gGlobalgEditiong15thgEdition
Chapterg1g AccountinggInformationgSystems:gAngOverview
1.1 Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gan
dgexplainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagan
dginformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocessesg togprovidegusersgwith
.
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefits
gAnswer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmak
egpredictions,gorgconfirmsgexpectations.
A) Timely
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactiviti
esgofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactiviti
esgthatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgisg
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:g A
g
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgd
ecisiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmea
ningful.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgac
tivitiesgofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
AllgChaptersgg
⬛⬛
g⬛
g AllgAnswersg
⬛
g⬛g⬛
g
,Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsyste
m.gThegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanag
ergoftengreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgof
gthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabo
ve?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgo
fgthegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinan
cialgrecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgb
ygMs.gMetrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgth
atgthegdiscrepanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteris
ticsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g F
g
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitgh
adgthegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupt
a,gthegdirectorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgw
ithghimgaboutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproduct
ion.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjob
s.gIsgtheregsomegwaygtogprintgoutgagpickglist?"
, Shamangthoughtgforgagwhilegbeforegresponding.g"Well,gAshlee,gtogtellgyougthegtruth,gI'mgnotg
sogsureghowgtogdogitgmyself,gbutgtheregmustgbegagway.gWe'llgbringgingthegconsultantsgthatgh
elpedgusgbuildgthegsystem.gMaybegtheygcanghelp."
Whichgofgthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescri
bedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g E
g
13) WisconsingDells,gWisconsin,gisgagpopulargtouristgdestination.gDuringgthegwintergmonths
,gthegpopulationgdwindlesgtogagmeagergfew,gbutgwhengsummergcomes,gthegsizegofgthegtow
ngsurges.gHuntergJacksongisgthegtowngsanitationgengineer.gWhengthegsizegofgthegtowngsurges
,gsogdoghisgresponsibilities.gAmonggthemgisgmanagementgofgthegsewagegprocessinggvolume.
Inganginterviewgwithgtheglocalgpaper,gHuntergcomplainedgthatgagreportgongtouristgpopulationg
thatghegusesgtogadjustgprocessinggvolumegrefersgtogdatagthatgwasgcollectedgfourgdaysgagogandg
itgtakesghimgagweekgtogmakegadjustments.gWhichgofgthegfollowinggcharacteristicsgofgusefulgin
formationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g D
g
14) AgfranticgBarneygRubbleglostgaglargegsalegbecauseghegcouldgnotgaccessgthegsystemgtogveri
fygtheginventorygwasgingstockgandgreadygtogbegshipped.gWhichgofgthegfollowinggcharacteristi
csgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
g g ⬛
g g ⬛
AllgAnswersgIncludedg⬛
g⬛g⬛
g
TESTg BANKg FO
R
AccountinggInformationgSystems,gGlobalgEditiong15thgEdition
Chapterg1g AccountinggInformationgSystems:gAngOverview
1.1 Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gan
dgexplainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagan
dginformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocessesg togprovidegusersgwith
.
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefits
gAnswer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmak
egpredictions,gorgconfirmsgexpectations.
A) Timely
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactiviti
esgofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactiviti
esgthatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgisg
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:g A
g
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgd
ecisiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmea
ningful.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgac
tivitiesgofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
AllgChaptersgg
⬛⬛
g⬛
g AllgAnswersg
⬛
g⬛g⬛
g
,Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsyste
m.gThegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanag
ergoftengreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgof
gthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabo
ve?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgo
fgthegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinan
cialgrecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgb
ygMs.gMetrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgth
atgthegdiscrepanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteris
ticsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g F
g
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitgh
adgthegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupt
a,gthegdirectorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgw
ithghimgaboutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproduct
ion.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjob
s.gIsgtheregsomegwaygtogprintgoutgagpickglist?"
, Shamangthoughtgforgagwhilegbeforegresponding.g"Well,gAshlee,gtogtellgyougthegtruth,gI'mgnotg
sogsureghowgtogdogitgmyself,gbutgtheregmustgbegagway.gWe'llgbringgingthegconsultantsgthatgh
elpedgusgbuildgthegsystem.gMaybegtheygcanghelp."
Whichgofgthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescri
bedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g E
g
13) WisconsingDells,gWisconsin,gisgagpopulargtouristgdestination.gDuringgthegwintergmonths
,gthegpopulationgdwindlesgtogagmeagergfew,gbutgwhengsummergcomes,gthegsizegofgthegtow
ngsurges.gHuntergJacksongisgthegtowngsanitationgengineer.gWhengthegsizegofgthegtowngsurges
,gsogdoghisgresponsibilities.gAmonggthemgisgmanagementgofgthegsewagegprocessinggvolume.
Inganginterviewgwithgtheglocalgpaper,gHuntergcomplainedgthatgagreportgongtouristgpopulationg
thatghegusesgtogadjustgprocessinggvolumegrefersgtogdatagthatgwasgcollectedgfourgdaysgagogandg
itgtakesghimgagweekgtogmakegadjustments.gWhichgofgthegfollowinggcharacteristicsgofgusefulgin
formationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g D
g
14) AgfranticgBarneygRubbleglostgaglargegsalegbecauseghegcouldgnotgaccessgthegsystemgtogveri
fygtheginventorygwasgingstockgandgreadygtogbegshipped.gWhichgofgthegfollowinggcharacteristi
csgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
