Accounting Information Systems 1st Edition Savage Test Bank ff ff ff ff ff ff ff
InstantAccess f
Accounting Information Systems, 1e (Savage) ff ff ff ff
Chapter 1 Accounting as Information
ff ff ff ff
All Chapters
ff ff
1) Accounting communicates to stakeholders ff ff ff
A) minimally required public financial data. ff ff ff ff
B) the financial outcomes of operating, investing, and financing activities.
ff ff ff ff ff ff ff ff
C) the sales strategy for the operating, marketing, and sales activities.
ff ff ff ff ff ff ff ff ff
D) black and white details about the economics of operating activities.
ff ff ff ff ff ff ff ff ff
Answer: B
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Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Communication
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f AC: Reporting
f ff
2) Accounting communicates the financial outcomes of a business's activities for
ff ff ff ff ff ff ff ff ff
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
ff ff ff ff ff ff
Answer: D
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Communication
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f AC: Reporting
f ff
3) In what way do management teams use accounting data?
ff ff ff ff ff ff ff ff
A) Management teams use accounting data to make business decisions. ff ff ff ff ff ff ff ff
B) Management teams use accounting data to make and execute plans. ff ff ff ff ff ff ff ff ff
C) Management teams use economic and accounting data together to make decisions. ff ff ff ff ff ff ff ff ff ff
D) All of these answer choices are correct.
ff ff ff ff ff ff
Answer: D
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Risk Assessment, Analysis, and Management
f f f f ff ff ff ff ff
1
,4) Which statement is TRUE? ff ff ff
A) Accounting consists of rigid black and white rules. ff ff ff ff ff ff ff
B) Accountants crunch numbers, not make decisions. ff ff ff ff ff
C) Accounting helps support a prosperous society. ff ff ff ff ff
D) Accountants focus on debits and credits, not business activities. ff ff ff ff ff ff ff ff
Answer: C
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f N/Af
5) Which of the following is NOT a component of an information system?
ff ff ff ff ff ff ff ff ff ff ff
A) Hardware
B) Software
C) Input
D) Network
Answer: C
ff ff
Diff: 1
ff ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Knowledge f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
6) Input to an information system consists of
ff ff ff ff ff ff
A) raw and unorganized data.
ff ff ff
B) hardware and software. ff ff
C) reported information. ff
D) processed data. f
Answer: A
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Knowledge f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
7) Which of the following is a definition of output from an information system?
ff ff ff ff ff ff ff ff ff ff ff ff
A) Output is raw and unorganized data. ff ff ff ff ff
B) Output is information produced by processing data.
ff ff ff ff ff ff
C) Output is database facts and figures. ff ff ff ff ff
D) Output is information collected from users.
ff ff ff ff ff
2
, Answer:
ff f f B
3
, Diff: 1
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
8) Which statement concerning data is TRUE?
ff ff ff ff ff
A) Data is useless to a business until transformed into information.
ff ff ff ff ff ff ff ff ff
B) Data is the output from an information system.
ff ff ff ff ff ff ff
C) Data is organized into understandable formats.
ff ff ff ff ff
D) Data is processed before being input into the information system.
ff ff ff ff ff ff ff ff ff
Answer: A
ff f f
Diff: 1
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
9) Which of the following activities would NOT result in a transaction in an accounting
ff ff ff ff ff ff ff ff ff ff ff ff ff
information system?
ff ff
A) Sell goods to a customer on account
ff ff ff ff ff ff
B) Purchase supplies on credit ff ff ff
C) Prepay for six months of insurance
ff ff ff ff ff
D) Receive a customer order ff ff ff
Answer: D
ff f f
Diff: 2
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Application f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
4
InstantAccess f
Accounting Information Systems, 1e (Savage) ff ff ff ff
Chapter 1 Accounting as Information
ff ff ff ff
All Chapters
ff ff
1) Accounting communicates to stakeholders ff ff ff
A) minimally required public financial data. ff ff ff ff
B) the financial outcomes of operating, investing, and financing activities.
ff ff ff ff ff ff ff ff
C) the sales strategy for the operating, marketing, and sales activities.
ff ff ff ff ff ff ff ff ff
D) black and white details about the economics of operating activities.
ff ff ff ff ff ff ff ff ff
Answer: B
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Communication
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f AC: Reporting
f ff
2) Accounting communicates the financial outcomes of a business's activities for
ff ff ff ff ff ff ff ff ff
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
ff ff ff ff ff ff
Answer: D
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Communication
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f AC: Reporting
f ff
3) In what way do management teams use accounting data?
ff ff ff ff ff ff ff ff
A) Management teams use accounting data to make business decisions. ff ff ff ff ff ff ff ff
B) Management teams use accounting data to make and execute plans. ff ff ff ff ff ff ff ff ff
C) Management teams use economic and accounting data together to make decisions. ff ff ff ff ff ff ff ff ff ff
D) All of these answer choices are correct.
ff ff ff ff ff ff
Answer: D
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Risk Assessment, Analysis, and Management
f f f f ff ff ff ff ff
1
,4) Which statement is TRUE? ff ff ff
A) Accounting consists of rigid black and white rules. ff ff ff ff ff ff ff
B) Accountants crunch numbers, not make decisions. ff ff ff ff ff
C) Accounting helps support a prosperous society. ff ff ff ff ff
D) Accountants focus on debits and credits, not business activities. ff ff ff ff ff ff ff ff
Answer: C
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's:
f Comprehension AICPA:
f ff
f N/Af
5) Which of the following is NOT a component of an information system?
ff ff ff ff ff ff ff ff ff ff ff
A) Hardware
B) Software
C) Input
D) Network
Answer: C
ff ff
Diff: 1
ff ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Knowledge f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
6) Input to an information system consists of
ff ff ff ff ff ff
A) raw and unorganized data.
ff ff ff
B) hardware and software. ff ff
C) reported information. ff
D) processed data. f
Answer: A
ff f f
Diff: 1 ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Knowledge f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
7) Which of the following is a definition of output from an information system?
ff ff ff ff ff ff ff ff ff ff ff ff
A) Output is raw and unorganized data. ff ff ff ff ff
B) Output is information produced by processing data.
ff ff ff ff ff ff
C) Output is database facts and figures. ff ff ff ff ff
D) Output is information collected from users.
ff ff ff ff ff
2
, Answer:
ff f f B
3
, Diff: 1
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
8) Which statement concerning data is TRUE?
ff ff ff ff ff
A) Data is useless to a business until transformed into information.
ff ff ff ff ff ff ff ff ff
B) Data is the output from an information system.
ff ff ff ff ff ff ff
C) Data is organized into understandable formats.
ff ff ff ff ff
D) Data is processed before being input into the information system.
ff ff ff ff ff ff ff ff ff
Answer: A
ff f f
Diff: 1
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Comprehension f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
9) Which of the following activities would NOT result in a transaction in an accounting
ff ff ff ff ff ff ff ff ff ff ff ff ff
information system?
ff ff
A) Sell goods to a customer on account
ff ff ff ff ff ff
B) Purchase supplies on credit ff ff ff
C) Prepay for six months of insurance
ff ff ff ff ff
D) Receive a customer order ff ff ff
Answer: D
ff f f
Diff: 2
ff
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
ff f f ff ff ff ff ff ff ff ff ff ff ff
information.
ff
Section Reference: Why is Accounting Information Important?
ff f f ff ff ff ff
AACSB: Analytic
ff f f
Bloom's: Application f f f f
AICPA: AC: Systems and Process Management
f f f f ff ff ff ff
4
