[TEST BANK] ACCOUNTING
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapter 1 il i l Accounting Information Systems: An Overview
il il il il
1.1 Distinguish ildata ilfrom ilinformation, ildiscuss ilthe ilcharacteristics ilof iluseful ilinformation, iland
ilexplain ilhow ilto ildetermine ilthe ilvalue ilof ilinformation.
1) Which ilof ilthe ilfollowing ilstatements ilbelow ilshows ilthe ilcontrast ilbetween ildata iland
ilinformation?
A) Data ilis ilthe iloutput ilof ilan ilAIS.
B) Information ilis ilthe ilprimary iloutput ilof ilan ilAIS.
C) Data ilis ilmore iluseful ilin ildecision ilmaking ilthan ilinformation.
D) Data iland ilinformation ilare ilthe ilsame.
Answer: i l B
2) Information ilis ilbest ildescribed ilas
A) raw ilfacts ilabout iltransactions.
B) data ilthat ilhas ilbeen ilorganized iland ilprocessed ilso ilthat ilit ilis ilmeaningful ilto ilthe iluser.
C) facts ilthat ilare iluseful ilwhen ilprocessed ilin ila iltimely ilmanner.
D) the ilsame ilthing ilas ildata.
Answer: i l B
3) The ilvalue ilof ilinformation ilcan ilbest ilbe ildetermined ilby
A) its ilusefulness ilto ildecision ilmakers.
B) its ilrelevance ilto ildecision ilmakers.
C) the ilbenefits ilassociated ilwith ilobtaining ilthe ilinformation ilminus ilthe ilcost ilof ilproducing ilit.
D) the ilextent ilto ilwhich ilit iloptimizes ilthe ilvalue ilchain.
Answer: i l C
4) An ilaccounting ilinformation ilsystem il(AIS) ilprocesses il to ilprovide ilusers ilwith
.
A) data; ilinformation
B) data; iltransactions
C) information; ildata
D) data; ilbenefits
Answer: i l A
il
5) information ilreduces iluncertainty, ilimproves ildecision ilmakers' ilability ilto ilmake
ilpredictions, ilor ilconfirms ilexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: i l C
il
6) Information ilthat ilis ilfree ilfrom ilerror ilor ilbias iland ilaccurately ilrepresents ilthe ilevents ilor ilactivities
ilof ilthe ilorganization ilis
A) relevant.
B) reliable il/ ilFaithful ilRepresentation.
C) verifiable.
D) timely.
Answer: i l B
7) Information ilthat ildoes ilnot ilomit ilimportant ilaspects ilof ilthe ilunderlying ilevents ilor
ilactivities ilthat ilit ilmeasures ilis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: i l A
8) Information ilis il when iltwo ilknowledgeable ilpeople ilindependently ilproduce ilthe
ilsame ilinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: i l A
il
9) Data ilmust ilbe ilconverted ilinto ilinformation ilto ilbe ilconsidered iluseful iland ilmeaningful ilfor
ildecision ilmaking. ilThere ilare ilsix ilcharacteristics ilthat ilmake ilinformation ilboth iluseful iland
ilmeaningful. ilIf ilinformation ilis ilfree ilfrom ilerror ilor ilbias iland ilaccurately ilrepresents ilthe ilevents
ilor ilactivities ilof ilthe ilorganization, ilit ilis ilrepresentative ilof ilthe ilcharacteristic ilof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: i l D
10) Inventory ilinformation ilis ilprovided ilin ilreal iltime ilby ila ilfirm's ilaccounting ilinformation ilsystem.
ilThe ilaccuracy ilof ilthis ilinformation ilis ilquestionable, ilhowever, ilsince ilthe ilproduction ilmanager
iloften ilreports ilstock ilouts ilof ilcomponents ilthat ilthe ilsystem ilindicates ilare ilin ilstock. ilWhich ilof
ilthe ilfollowing ilcharacteristics ilof iluseful ilinformation ilis ilabsent ilin ilthe ilsituation ildescribed
ilabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: i l B
il
11) Cheryl ilMetrejean ilhas ilbeen ilthe ilcontroller ilof ilDowntown ilTires ilfor il25 ilyears. ilOwnership
ilof ilthe ilfirm ilrecently ilchanged ilhands iland ilthe ilnew ilowners ilare ilconducting ilan ilaudit ilof ilthe
ilfinancial ilrecords. ilThe ilaudit ilhas ilbeen ilunable ilto ilreproduce ilfinancial ilreports ilthat ilwere
ilprepared ilby ilMs. ilMetrejean. ilWhile ilthere ilis ilno ilevidence ilof ilwrongdoing, ilthe ilauditors ilare
ilconcerned ilthat ilthe ildiscrepancies ilmight ilcontribute ilto ilpoor ildecisions. ilWhich ilof ilthe
ilfollowing ilcharacteristics ilof iluseful ilinformation ilis ilabsent ilin ilthe ilsituation ildescribed ilabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: i l F
il
12) In il2003, ilSingh ilManufacturing ilimplemented ila ilWeb-based ilinformation ilsystem ilthat
ilallows ilall ilemployees ilto ilaccess ilmission-critical ilinformation. ilThe ilintention ilwas ilto ilincrease
ilproduction ilefficiency. ilUnfortunately, ilit ilhad ilthe ilopposite ileffect, ilas ildeliveries ilfell ilbehind
ilschedule iland ilcosts ilincreased. ilShaman ilGupta, ilthe ildirector ilof ilinformation iltechnology
ilservices, ilasked ilAshlee ilWells ilto ilcome ilin iland iltalk ilwith ilhim ilabout ilthe ilsystem. ilAshlee ilis ila
illong-time ilemployee ilof ilSingh, iland ilher ilopinion ilis ilvalued ilby ilher ilpeers iland ilby ilher
ilsupervisor.
"So ilAshlee, ilhow's ilit ilgoing ildown ilthere ilin ilthe ilshop?"
"Not ilso ilgood, ilShaman. ilUsed ilto ilbe ilwe ilgot ila ilweekly ilpick illist ilso ilwe ilknew ilhow ilto ilplan
ilproduction. ilNow, ilwe ilgot ilthat ilcomputer ilsystem. ilMost ilof ilus ilcan't ilfigure ilout ilhow ilto iluse ilit ilto
ildo ilour iljobs. ilIs ilthere ilsome ilway ilto ilprint ilout ila ilpick illist?"
3
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapter 1 il i l Accounting Information Systems: An Overview
il il il il
1.1 Distinguish ildata ilfrom ilinformation, ildiscuss ilthe ilcharacteristics ilof iluseful ilinformation, iland
ilexplain ilhow ilto ildetermine ilthe ilvalue ilof ilinformation.
1) Which ilof ilthe ilfollowing ilstatements ilbelow ilshows ilthe ilcontrast ilbetween ildata iland
ilinformation?
A) Data ilis ilthe iloutput ilof ilan ilAIS.
B) Information ilis ilthe ilprimary iloutput ilof ilan ilAIS.
C) Data ilis ilmore iluseful ilin ildecision ilmaking ilthan ilinformation.
D) Data iland ilinformation ilare ilthe ilsame.
Answer: i l B
2) Information ilis ilbest ildescribed ilas
A) raw ilfacts ilabout iltransactions.
B) data ilthat ilhas ilbeen ilorganized iland ilprocessed ilso ilthat ilit ilis ilmeaningful ilto ilthe iluser.
C) facts ilthat ilare iluseful ilwhen ilprocessed ilin ila iltimely ilmanner.
D) the ilsame ilthing ilas ildata.
Answer: i l B
3) The ilvalue ilof ilinformation ilcan ilbest ilbe ildetermined ilby
A) its ilusefulness ilto ildecision ilmakers.
B) its ilrelevance ilto ildecision ilmakers.
C) the ilbenefits ilassociated ilwith ilobtaining ilthe ilinformation ilminus ilthe ilcost ilof ilproducing ilit.
D) the ilextent ilto ilwhich ilit iloptimizes ilthe ilvalue ilchain.
Answer: i l C
4) An ilaccounting ilinformation ilsystem il(AIS) ilprocesses il to ilprovide ilusers ilwith
.
A) data; ilinformation
B) data; iltransactions
C) information; ildata
D) data; ilbenefits
Answer: i l A
il
5) information ilreduces iluncertainty, ilimproves ildecision ilmakers' ilability ilto ilmake
ilpredictions, ilor ilconfirms ilexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: i l C
il
6) Information ilthat ilis ilfree ilfrom ilerror ilor ilbias iland ilaccurately ilrepresents ilthe ilevents ilor ilactivities
ilof ilthe ilorganization ilis
A) relevant.
B) reliable il/ ilFaithful ilRepresentation.
C) verifiable.
D) timely.
Answer: i l B
7) Information ilthat ildoes ilnot ilomit ilimportant ilaspects ilof ilthe ilunderlying ilevents ilor
ilactivities ilthat ilit ilmeasures ilis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: i l A
8) Information ilis il when iltwo ilknowledgeable ilpeople ilindependently ilproduce ilthe
ilsame ilinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: i l A
il
9) Data ilmust ilbe ilconverted ilinto ilinformation ilto ilbe ilconsidered iluseful iland ilmeaningful ilfor
ildecision ilmaking. ilThere ilare ilsix ilcharacteristics ilthat ilmake ilinformation ilboth iluseful iland
ilmeaningful. ilIf ilinformation ilis ilfree ilfrom ilerror ilor ilbias iland ilaccurately ilrepresents ilthe ilevents
ilor ilactivities ilof ilthe ilorganization, ilit ilis ilrepresentative ilof ilthe ilcharacteristic ilof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: i l D
10) Inventory ilinformation ilis ilprovided ilin ilreal iltime ilby ila ilfirm's ilaccounting ilinformation ilsystem.
ilThe ilaccuracy ilof ilthis ilinformation ilis ilquestionable, ilhowever, ilsince ilthe ilproduction ilmanager
iloften ilreports ilstock ilouts ilof ilcomponents ilthat ilthe ilsystem ilindicates ilare ilin ilstock. ilWhich ilof
ilthe ilfollowing ilcharacteristics ilof iluseful ilinformation ilis ilabsent ilin ilthe ilsituation ildescribed
ilabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: i l B
il
11) Cheryl ilMetrejean ilhas ilbeen ilthe ilcontroller ilof ilDowntown ilTires ilfor il25 ilyears. ilOwnership
ilof ilthe ilfirm ilrecently ilchanged ilhands iland ilthe ilnew ilowners ilare ilconducting ilan ilaudit ilof ilthe
ilfinancial ilrecords. ilThe ilaudit ilhas ilbeen ilunable ilto ilreproduce ilfinancial ilreports ilthat ilwere
ilprepared ilby ilMs. ilMetrejean. ilWhile ilthere ilis ilno ilevidence ilof ilwrongdoing, ilthe ilauditors ilare
ilconcerned ilthat ilthe ildiscrepancies ilmight ilcontribute ilto ilpoor ildecisions. ilWhich ilof ilthe
ilfollowing ilcharacteristics ilof iluseful ilinformation ilis ilabsent ilin ilthe ilsituation ildescribed ilabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer: i l F
il
12) In il2003, ilSingh ilManufacturing ilimplemented ila ilWeb-based ilinformation ilsystem ilthat
ilallows ilall ilemployees ilto ilaccess ilmission-critical ilinformation. ilThe ilintention ilwas ilto ilincrease
ilproduction ilefficiency. ilUnfortunately, ilit ilhad ilthe ilopposite ileffect, ilas ildeliveries ilfell ilbehind
ilschedule iland ilcosts ilincreased. ilShaman ilGupta, ilthe ildirector ilof ilinformation iltechnology
ilservices, ilasked ilAshlee ilWells ilto ilcome ilin iland iltalk ilwith ilhim ilabout ilthe ilsystem. ilAshlee ilis ila
illong-time ilemployee ilof ilSingh, iland ilher ilopinion ilis ilvalued ilby ilher ilpeers iland ilby ilher
ilsupervisor.
"So ilAshlee, ilhow's ilit ilgoing ildown ilthere ilin ilthe ilshop?"
"Not ilso ilgood, ilShaman. ilUsed ilto ilbe ilwe ilgot ila ilweekly ilpick illist ilso ilwe ilknew ilhow ilto ilplan
ilproduction. ilNow, ilwe ilgot ilthat ilcomputer ilsystem. ilMost ilof ilus ilcan't ilfigure ilout ilhow ilto iluse ilit ilto
ildo ilour iljobs. ilIs ilthere ilsome ilway ilto ilprint ilout ila ilpick illist?"
3
