[TEST BANK] ACCOUNTING INFORMATION SYSTEMS, 15TH EDITION BY ROMNEY, STEINBART, SUMMERS, WOOD

TEST BANK] ACCOUNTING INFORMATION
SYSTEMS, 16TH EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD

, Chapter1 Accounting Information Systems: AnOverview t t t t t t




1.1 Distinguishdatafrominformation,discuss thecharacteristics ofusefulinformation,and expl t t t t t t t t t t t




ain how to determine the value of information.
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1) Whichofthefollowing statements belowshowsthecontrastbetweendata and infor
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mation?
A) Data is the output of an AIS. t t t t t t




B) Information is the primary output of an AIS. t t t t t t t




C) Data is more useful in decision making than information.
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D) Data and information are the same. t t t t t




Answer: B t




2) Information isbest describedas t t t t




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 data.
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Answer: B t




3) The value ofinformation canbest 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) thebenefitsassociated with obtaining the information minus the costofproducing it.
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D) the extent to whichit optimizes the value chain.
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Answer: C t




4) An accounting information system (AIS)processes
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.
A) data;information t




B) data;transactions t




C) information; data t




D) data;benefits t t




Answer: A t




5) informationreducesuncertainty,improvesdecisionmakers'abilitytomake pre t t t t t t t t t




dictions, or confirms expectations. t t t




A) Timely


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,B) Reliable
C) Relevant
D) Complete t




Answer: C t




6) Information that isfreefrom error orbias andaccuratelyrepresentsthe eventsor activities of the
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organization is t




A) relevant.
B) reliable/ Faithful Representation.
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C) verifiable.
D) timely.

Answer: B t




7) Information that doesnot omit important aspectsoftheunderlying events oractivities that i
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t measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.

Answer: A t




8) Information is t t




whentwoknowledgeablepeopleindependentlyproducethe same information.
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A) verifiable
B) relevant
C) reliable
D) complete

t Answer: A t




9) Data must be converted into information to be considered useful and meaningful for decision
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making. There are six characteristics that make information both useful and meaningful. If infor
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mation is freefrom error orbiasandaccurately represents the events or activities of the organizat
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ion, it is representative of the characteristic of
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A) relevancy.
B) timeliness.
C) understandability.
D) reliability.




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, Answer: D t




10) Inventory information isprovidedinrealtimebyafirm'saccounting information system. The a t t t t t t t t t t t t t t




ccuracy of this information is questionable, however, since the production manager often report
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s stock outs of components that the system indicates are in stock. Which of the following characte
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ristics of useful information is absent in the situation described above?
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A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible t




Answer: B t




11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of the fir
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m recently changedhands and the new owners areconducting an audit of the financial records. The
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audit has been unable to reproduce financial reports that were prepared by Ms. Metrejean. While
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there is no evidence of wrongdoing, the auditors are concerned that the discrepancies might contr
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ibute to poor decisions. Which of the following characteristics of useful information is absent in th
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e situation described above?
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A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible t




Answer: F t




12) In 2003, Singh Manufacturing implemented a Web-
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based information system that allows allemployees to accessmission-
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criticalinformation.Theintentionwas toincreaseproduction efficiency. Unfortunately, it had the
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opposite effect, as deliveries fell behind schedule and costs increased.ShamanGupta, thedirector
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of information technology services, askedAshlee Wells to come in and talk with him about the syst
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em. Ashlee is a long- t t t t




time employee of Singh, and her opinion is valued by her peers and by her supervisor.
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"So Ashlee, how's it going down there in the shop?"
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"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production. Now
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, we got thatcomputer system.Most ofuscan't figure out howto useit to do our jobs. Is there some w
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ay to print out a pick list?"
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