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, Accounting Information Systems 1st Edition Savage Test Bank +y +y +y +y +y +y +y
Instant Access +y +
Accounting Information Systems, 1e (Savage
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) Chapter 1 Accounting as Information
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All Chapters
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1) Accounting communicates to stakeholders +y +y +y
A) minimally required public financial data.+y +y +y +y
B) the financial outcomes of operating, investing, and financing activities.
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C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activitie
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s. Answer: B
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Communication
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Bloom's: Comprehensio+ y
n AICPA: AC: Reportin
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g
2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correc
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t. Answer: D
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Communication
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Bloom's: Comprehensio+ y
n AICPA: AC: Reportin
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g
3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions.
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B) Management teams use accounting data to make and execute plans.
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C) Management teams use economic and accounting data together to make decisions.
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D) All of these answer choices are correc
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t. Answer: D
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Analytic
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Bloom's: Comprehension
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AICPA: AC: Risk Assessment, Analysis, and Management
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, 4) Which statement is TRUE? +y +y +y
A) Accounting consists of rigid black and white rules. +y +y +y +y +y +y +y
B) Accountants crunch numbers, not make decisions. +y +y +y +y +y
C) Accounting helps support a prosperous society. +y +y +y +y +y
D) Accountants focus on debits and credits, not business activitie
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s. Answer: C
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Diff: 1 +y
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Analytic
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Bloom's: Comprehensio + y
n AICPA: N/A
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5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network
Answer: C
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Analytic
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Bloom's: Knowledge + y + y
AICPA: AC: Systems and Process Management
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6) Input to an information system consists of
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A) raw and unorganized data.
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B) hardware and software. +y +y
C) reported information. +y
D) processed data. +y
Answer: A
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Diff: 1 +y
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of info
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rmation.
Section Reference: Why is Accounting Information Important? AA
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CSB: Analytic
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Bloom's: Knowledge + y + y
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.
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B) Output is information produced by processing data.
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C) Output is database facts and figures.
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D) Output is information collected from users
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. Answer: B
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