Exam
Name___________________________________
1. Which of the following statements below shows the contrast between data and information?
A) Data and information are the same.
B) Data is more useful in decision-making than information.
C) Data is the output of an AIS.
D) Information is the primary output of an AIS.
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2. Information is
A) potentially useful facts when processed in a timely manner.
B) basically the same as data.
C) raw facts about transactions.
D) data that has been organized and processed so that it's meaningful.
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
3. The value of information can best be defined as
A) the benefits produced by possessing and using the information minus the cost of producing it.
B) how useful it is to decision makers.
C) how relevant it is.
D) the extent to which it maximizes the value chain.
Answer: A
Explanation: A)
B)
C)
D)
Comment:
, Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
4. An accounting information system (AIS) processes ________ to provide users with ________.
A) information; data
B) data; transactions
C) data; benefits
D) data; information
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 30
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
5. Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or
corrects their prior expectations, is said to be
A) reliable.
B) relevant.
C) complete.
D) timely.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
6. Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) verifiable.
B) reliable.
, C) timely.
D) relevant.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
7. Information that does not omit important aspects of the underlying events or activities that it measures is
A) relevant.
B) complete.
C) accessible.
D) timely.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
8. When two knowledgeable people acting independently each produce the same information, this information
is said to be
A) verifiable.
B) relevant.
C) reliable.
D) complete.
Answer: A
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
, Difficulty : Easy
AACSB: Analytic
9. Data must be converted into information to be considered useful and meaningful for decision-making. There
are six characteristics that make information both useful and meaningful. If information is free from error or
bias and accurately represents the events or activities of the organization, it is representative of the
characteristic of
A) relevancy.
B) reliability.
C) understandability.
D) timeliness.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
10. An accounting information system must be able to perform which of the following tasks?
A) provide adequate controls
B) process transaction data
C) collect transaction data
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 30
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic
11. Which of the following is not an example of a common activity in an AIS?
A) recording of sales calls for marketing purposes
B) buy and pay for goods and services
C) summarize and report results to interested parties
D) sell goods and services and collect cash
Answer: A
Explanation: A)
Name___________________________________
1. Which of the following statements below shows the contrast between data and information?
A) Data and information are the same.
B) Data is more useful in decision-making than information.
C) Data is the output of an AIS.
D) Information is the primary output of an AIS.
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
2. Information is
A) potentially useful facts when processed in a timely manner.
B) basically the same as data.
C) raw facts about transactions.
D) data that has been organized and processed so that it's meaningful.
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
3. The value of information can best be defined as
A) the benefits produced by possessing and using the information minus the cost of producing it.
B) how useful it is to decision makers.
C) how relevant it is.
D) the extent to which it maximizes the value chain.
Answer: A
Explanation: A)
B)
C)
D)
Comment:
, Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 24
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic
4. An accounting information system (AIS) processes ________ to provide users with ________.
A) information; data
B) data; transactions
C) data; benefits
D) data; information
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 30
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
5. Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or
corrects their prior expectations, is said to be
A) reliable.
B) relevant.
C) complete.
D) timely.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
6. Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) verifiable.
B) reliable.
, C) timely.
D) relevant.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
7. Information that does not omit important aspects of the underlying events or activities that it measures is
A) relevant.
B) complete.
C) accessible.
D) timely.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
8. When two knowledgeable people acting independently each produce the same information, this information
is said to be
A) verifiable.
B) relevant.
C) reliable.
D) complete.
Answer: A
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
, Difficulty : Easy
AACSB: Analytic
9. Data must be converted into information to be considered useful and meaningful for decision-making. There
are six characteristics that make information both useful and meaningful. If information is free from error or
bias and accurately represents the events or activities of the organization, it is representative of the
characteristic of
A) relevancy.
B) reliability.
C) understandability.
D) timeliness.
Answer: B
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 25
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
10. An accounting information system must be able to perform which of the following tasks?
A) provide adequate controls
B) process transaction data
C) collect transaction data
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)
Comment:
Diff: 0 Type: MC WS: 0 Var: 1 Page Ref: 30
Created On: May 9 2008 Modified On: May 14 2011
Topic:
Skill:
Objective: Learning Objective 5
Difficulty : Easy
AACSB: Analytic
11. Which of the following is not an example of a common activity in an AIS?
A) recording of sales calls for marketing purposes
B) buy and pay for goods and services
C) summarize and report results to interested parties
D) sell goods and services and collect cash
Answer: A
Explanation: A)
