[TEST BANK] ACCOUNTING
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapterh1h AccountinghInformationhSystems:hAnhOverview
1.1 Distinguishhdatahfromhinformation,hdiscusshthehcharacteristicshofhusefulhinformation,h
andhexplainhhowhtohdeterminehthehvaluehofhinformation.
1) Whichhofhthehfollowinghstatementshbelowhshowshthehcontrasthbetweenhdatah
andhinformation?
A) DatahishthehoutputhofhanhAIS.
B) InformationhishthehprimaryhoutputhofhanhAIS.
C) Datahishmorehusefulhinhdecisionhmakinghthanhinformation.
D) Datahandhinformationharehthehsame.
Answer:h B
2) Informationhishbesthdescribedhas
A) rawhfactshabouthtransactions.
B) datahthathhashbeenhorganizedhandhprocessedhsohthathithishmeaningfulhtohthehuser.
C) factshthatharehusefulhwhenhprocessedhinhahtimelyhmanner.
D) thehsamehthinghashdata.
Answer:h B
3) Thehvaluehofhinformationhcanhbesthbehdeterminedhby
A) itshusefulnesshtohdecisionhmakers.
B) itshrelevancehtohdecisionhmakers.
C) thehbenefitshassociatedhwithhobtaininghthehinformationhminushthehcosthofhproducinghit.
D) thehextenthtohwhichhithoptimizeshthehvaluehchain.
Answer:h C
4) Anhaccountinghinformationhsystemh(AIS)hprocessesh tohprovidehusershwith
.
A) data;hinformation
B) data;htransactions
C) information;hdata
D) data;hbenefits
hAnswer:h A
5) informationhreduceshuncertainty,himproveshdecisionhmakers'habilityhtohma
kehpredictions,horhconfirmshexpectations.
A) Timely
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,B) Reliable
C) Relevant
D) Complete
hAnswer:h C
6) Informationhthathishfreehfromherrorhorhbiashandhaccuratelyhrepresentshtheheventshorhactiv
itieshofhthehorganizationhis
A) relevant.
B) reliableh/hFaithfulhRepresentation.
C) verifiable.
D) timely.
Answer:h B
7) Informationhthathdoeshnothomithimportanthaspectshofhthehunderlyingheventshorhactivi
tieshthathithmeasureshis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:h A
8) Informationhish
whenhtwohknowledgeablehpeoplehindependentlyhproducehthehsamehinformation.
A) verifiable
B) relevant
C) reliable
D) complete
hAnswer:h A
9) Datahmusthbehconvertedhintohinformationhtohbehconsideredhusefulhandhmeaningfulhfor
hdecisionhmaking.hThereharehsixhcharacteristicshthathmakehinformationhbothhusefulhandh
meaningful.hIfhinformationhishfreehfromherrorhorhbiashandhaccuratelyhrepresentshtheheven
tshorhactivitieshofhthehorganization,hithishrepresentativehofhthehcharacteristichof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
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, Answer:h D
10) Inventoryhinformationhishprovidedhinhrealhtimehbyhahfirm'shaccountinghinformationhsyst
em.hThehaccuracyhofhthishinformationhishquestionable,hhowever,hsincehthehproductionhma
nagerhoftenhreportshstockhoutshofhcomponentshthaththehsystemhindicatesharehinhstock.hW
hichhofhthehfollowinghcharacteristicshofhusefulhinformationhishabsenthinhthehsituationhdesc
ribedhabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
hAnswer:h B
11) CherylhMetrejeanhhashbeenhthehcontrollerhofhDowntownhTireshforh25hyears.hOwnershi
phofhthehfirmhrecentlyhchangedhhandshandhthehnewhownersharehconductinghanhaudithofhth
ehfinancialhrecords.hThehaudithhashbeenhunablehtohreproducehfinancialhreportshthathwerehp
reparedhbyhMs.hMetrejean.hWhilehtherehishnohevidencehofhwrongdoing,hthehauditorsharehc
oncernedhthaththehdiscrepancieshmighthcontributehtohpoorhdecisions.hWhichhofhthehfollowi
nghcharacteristicshofhusefulhinformationhishabsenthinhthehsituationhdescribedhabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
hAnswer:h F
12) Inh2003,hSinghhManufacturinghimplementedhahWeb-
basedhinformationhsystemhthathallowshallhemployeeshtohaccesshmission-
criticalhinformation.hThehintentionhwashtohincreasehproductionhefficiency.hUnfortunately,hith
hadhthehoppositeheffect,hashdeliverieshfellhbehindhschedulehandhcostshincreased.hShamanhG
upta,hthehdirectorhofhinformationhtechnologyhservices,haskedhAshleehWellshtohcomehinhandh
talkhwithhhimhabouththehsystem.hAshleehishahlong-
timehemployeehofhSingh,handhherhopinionhishvaluedhbyhherhpeershandhbyhherhsupervisor.
"SohAshlee,hhow'shithgoinghdownhtherehinhthehshop?"
"Nothsohgood,hShaman.hUsedhtohbehwehgothahweeklyhpickhlisthsohwehknewhhowhtohplanhpro
duction.hNow,hwehgoththathcomputerhsystem.hMosthofhushcan'thfigurehouthhowhtohusehithtohd
ohourhjobs.hIshtherehsomehwayhtohprinthouthahpickhlist?"
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INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapterh1h AccountinghInformationhSystems:hAnhOverview
1.1 Distinguishhdatahfromhinformation,hdiscusshthehcharacteristicshofhusefulhinformation,h
andhexplainhhowhtohdeterminehthehvaluehofhinformation.
1) Whichhofhthehfollowinghstatementshbelowhshowshthehcontrasthbetweenhdatah
andhinformation?
A) DatahishthehoutputhofhanhAIS.
B) InformationhishthehprimaryhoutputhofhanhAIS.
C) Datahishmorehusefulhinhdecisionhmakinghthanhinformation.
D) Datahandhinformationharehthehsame.
Answer:h B
2) Informationhishbesthdescribedhas
A) rawhfactshabouthtransactions.
B) datahthathhashbeenhorganizedhandhprocessedhsohthathithishmeaningfulhtohthehuser.
C) factshthatharehusefulhwhenhprocessedhinhahtimelyhmanner.
D) thehsamehthinghashdata.
Answer:h B
3) Thehvaluehofhinformationhcanhbesthbehdeterminedhby
A) itshusefulnesshtohdecisionhmakers.
B) itshrelevancehtohdecisionhmakers.
C) thehbenefitshassociatedhwithhobtaininghthehinformationhminushthehcosthofhproducinghit.
D) thehextenthtohwhichhithoptimizeshthehvaluehchain.
Answer:h C
4) Anhaccountinghinformationhsystemh(AIS)hprocessesh tohprovidehusershwith
.
A) data;hinformation
B) data;htransactions
C) information;hdata
D) data;hbenefits
hAnswer:h A
5) informationhreduceshuncertainty,himproveshdecisionhmakers'habilityhtohma
kehpredictions,horhconfirmshexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
hAnswer:h C
6) Informationhthathishfreehfromherrorhorhbiashandhaccuratelyhrepresentshtheheventshorhactiv
itieshofhthehorganizationhis
A) relevant.
B) reliableh/hFaithfulhRepresentation.
C) verifiable.
D) timely.
Answer:h B
7) Informationhthathdoeshnothomithimportanthaspectshofhthehunderlyingheventshorhactivi
tieshthathithmeasureshis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:h A
8) Informationhish
whenhtwohknowledgeablehpeoplehindependentlyhproducehthehsamehinformation.
A) verifiable
B) relevant
C) reliable
D) complete
hAnswer:h A
9) Datahmusthbehconvertedhintohinformationhtohbehconsideredhusefulhandhmeaningfulhfor
hdecisionhmaking.hThereharehsixhcharacteristicshthathmakehinformationhbothhusefulhandh
meaningful.hIfhinformationhishfreehfromherrorhorhbiashandhaccuratelyhrepresentshtheheven
tshorhactivitieshofhthehorganization,hithishrepresentativehofhthehcharacteristichof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
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, Answer:h D
10) Inventoryhinformationhishprovidedhinhrealhtimehbyhahfirm'shaccountinghinformationhsyst
em.hThehaccuracyhofhthishinformationhishquestionable,hhowever,hsincehthehproductionhma
nagerhoftenhreportshstockhoutshofhcomponentshthaththehsystemhindicatesharehinhstock.hW
hichhofhthehfollowinghcharacteristicshofhusefulhinformationhishabsenthinhthehsituationhdesc
ribedhabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
hAnswer:h B
11) CherylhMetrejeanhhashbeenhthehcontrollerhofhDowntownhTireshforh25hyears.hOwnershi
phofhthehfirmhrecentlyhchangedhhandshandhthehnewhownersharehconductinghanhaudithofhth
ehfinancialhrecords.hThehaudithhashbeenhunablehtohreproducehfinancialhreportshthathwerehp
reparedhbyhMs.hMetrejean.hWhilehtherehishnohevidencehofhwrongdoing,hthehauditorsharehc
oncernedhthaththehdiscrepancieshmighthcontributehtohpoorhdecisions.hWhichhofhthehfollowi
nghcharacteristicshofhusefulhinformationhishabsenthinhthehsituationhdescribedhabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
hAnswer:h F
12) Inh2003,hSinghhManufacturinghimplementedhahWeb-
basedhinformationhsystemhthathallowshallhemployeeshtohaccesshmission-
criticalhinformation.hThehintentionhwashtohincreasehproductionhefficiency.hUnfortunately,hith
hadhthehoppositeheffect,hashdeliverieshfellhbehindhschedulehandhcostshincreased.hShamanhG
upta,hthehdirectorhofhinformationhtechnologyhservices,haskedhAshleehWellshtohcomehinhandh
talkhwithhhimhabouththehsystem.hAshleehishahlong-
timehemployeehofhSingh,handhherhopinionhishvaluedhbyhherhpeershandhbyhherhsupervisor.
"SohAshlee,hhow'shithgoinghdownhtherehinhthehshop?"
"Nothsohgood,hShaman.hUsedhtohbehwehgothahweeklyhpickhlisthsohwehknewhhowhtohplanhpro
duction.hNow,hwehgoththathcomputerhsystem.hMosthofhushcan'thfigurehouthhowhtohusehithtohd
ohourhjobs.hIshtherehsomehwayhtohprinthouthahpickhlist?"
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