[TEST BANK] ACCOUNTING
wn wn
INFORMATION SYSTEMS,
wn wn
15TH EDITION BY ROMNEY,
wn wn wn wn
STEINBART, SUMMERS, WOOD
wn wn wn
, Chapter 1wn w n Accounting Information Systems: An Overview
wn wn wn wn
1.1 Distinguish wndata wnfrom wninformation, wndiscuss wnthe wncharacteristics wnof wnuseful
wninformation, wnand wnexplain wnhow wnto wndetermine wnthe wnvalue wnof wninformation.
1) Which wnof wnthe wnfollowing wnstatements wnbelow wnshows wnthe wncontrast wnbetween
wndata wnand wninformation?
A) Data wnis wnthe wnoutput wnof wnan wnAIS.
B) Information wnis wnthe wnprimary wnoutput wnof wnan wnAIS.
C) Data wnis wnmore wnuseful wnin wndecision wnmaking wnthan wninformation.
D) Data wnand wninformation wnare wnthe wnsame.
Answer: w n B
2) Information wnis wnbest wndescribed wnas
A) raw wnfacts wnabout wntransactions.
B) data wnthat wnhas wnbeen wnorganized wnand wnprocessed wnso wnthat wnit wnis wnmeaningful wnto wnthe wnuser.
C) facts wnthat wnare wnuseful wnwhen wnprocessed wnin wna wntimely wnmanner.
D) the wnsame wnthing wnas wndata.
Answer: w n B
3) The wnvalue wnof wninformation wncan wnbest wnbe wndetermined wnby
A) its wnusefulness wnto wndecision wnmakers.
B) its wnrelevance wnto wndecision wnmakers.
C) the wnbenefits wnassociated wnwith wnobtaining wnthe wninformation wnminus wnthe wncost wnof wnproducing wnit.
D) the wnextent wnto wnwhich wnit wnoptimizes wnthe wnvalue wnchain.
Answer: w n C
4) An wnaccounting wninformation wnsystem wn(AIS) wnprocesses wn to wnprovide wnusers wnwith
.
A) data; wninformation
B) data; wntransactions
C) information; wndata
D) data;
benefits
wn
wn Answer: w n A
5) information wnreduces wnuncertainty, wnimproves wndecision wnmakers' wnability wnto
wnmake wnpredictions, wnor wnconfirms wnexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
wnAnswer:
w n C
6) Information wnthat wnis wnfree wnfrom wnerror wnor wnbias wnand wnaccurately wnrepresents wnthe wnevents
wnor wnactivities wnof wnthe wnorganization wnis
A) relevant.
B) reliable wn/ wnFaithful wnRepresentation.
C) verifiable.
D) timely.
Answer: w n B
7) Information wnthat wndoes wnnot wnomit wnimportant wnaspects wnof wnthe wnunderlying wnevents wnor
wnactivities wnthat wnit wnmeasures wnis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: w n A
8) Information wnis wn when wntwo wnknowledgeable wnpeople wnindependently wnproduce
wnthe wnsame wninformation.
A) verifiable
B) relevant
C) reliable
D) complete
wnAnswer:
w n A
9) Data wnmust wnbe wnconverted wninto wninformation wnto wnbe wnconsidered wnuseful wnand
wnmeaningful wnfor wndecision wnmaking. wnThere wnare wnsix wncharacteristics wnthat wnmake
wninformation wnboth wnuseful wnand wnmeaningful. wnIf wninformation wnis wnfree wnfrom wnerror wnor
wnbias wnand wnaccurately wnrepresents wnthe wnevents wnor wnactivities wnof wnthe wnorganization, wnit wnis
wnrepresentative wnof wnthe wncharacteristic wnof
A) relevancy.
B) timeliness.
2
, C) understandability.
D) reliability.
3
wn wn
INFORMATION SYSTEMS,
wn wn
15TH EDITION BY ROMNEY,
wn wn wn wn
STEINBART, SUMMERS, WOOD
wn wn wn
, Chapter 1wn w n Accounting Information Systems: An Overview
wn wn wn wn
1.1 Distinguish wndata wnfrom wninformation, wndiscuss wnthe wncharacteristics wnof wnuseful
wninformation, wnand wnexplain wnhow wnto wndetermine wnthe wnvalue wnof wninformation.
1) Which wnof wnthe wnfollowing wnstatements wnbelow wnshows wnthe wncontrast wnbetween
wndata wnand wninformation?
A) Data wnis wnthe wnoutput wnof wnan wnAIS.
B) Information wnis wnthe wnprimary wnoutput wnof wnan wnAIS.
C) Data wnis wnmore wnuseful wnin wndecision wnmaking wnthan wninformation.
D) Data wnand wninformation wnare wnthe wnsame.
Answer: w n B
2) Information wnis wnbest wndescribed wnas
A) raw wnfacts wnabout wntransactions.
B) data wnthat wnhas wnbeen wnorganized wnand wnprocessed wnso wnthat wnit wnis wnmeaningful wnto wnthe wnuser.
C) facts wnthat wnare wnuseful wnwhen wnprocessed wnin wna wntimely wnmanner.
D) the wnsame wnthing wnas wndata.
Answer: w n B
3) The wnvalue wnof wninformation wncan wnbest wnbe wndetermined wnby
A) its wnusefulness wnto wndecision wnmakers.
B) its wnrelevance wnto wndecision wnmakers.
C) the wnbenefits wnassociated wnwith wnobtaining wnthe wninformation wnminus wnthe wncost wnof wnproducing wnit.
D) the wnextent wnto wnwhich wnit wnoptimizes wnthe wnvalue wnchain.
Answer: w n C
4) An wnaccounting wninformation wnsystem wn(AIS) wnprocesses wn to wnprovide wnusers wnwith
.
A) data; wninformation
B) data; wntransactions
C) information; wndata
D) data;
benefits
wn
wn Answer: w n A
5) information wnreduces wnuncertainty, wnimproves wndecision wnmakers' wnability wnto
wnmake wnpredictions, wnor wnconfirms wnexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
wnAnswer:
w n C
6) Information wnthat wnis wnfree wnfrom wnerror wnor wnbias wnand wnaccurately wnrepresents wnthe wnevents
wnor wnactivities wnof wnthe wnorganization wnis
A) relevant.
B) reliable wn/ wnFaithful wnRepresentation.
C) verifiable.
D) timely.
Answer: w n B
7) Information wnthat wndoes wnnot wnomit wnimportant wnaspects wnof wnthe wnunderlying wnevents wnor
wnactivities wnthat wnit wnmeasures wnis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: w n A
8) Information wnis wn when wntwo wnknowledgeable wnpeople wnindependently wnproduce
wnthe wnsame wninformation.
A) verifiable
B) relevant
C) reliable
D) complete
wnAnswer:
w n A
9) Data wnmust wnbe wnconverted wninto wninformation wnto wnbe wnconsidered wnuseful wnand
wnmeaningful wnfor wndecision wnmaking. wnThere wnare wnsix wncharacteristics wnthat wnmake
wninformation wnboth wnuseful wnand wnmeaningful. wnIf wninformation wnis wnfree wnfrom wnerror wnor
wnbias wnand wnaccurately wnrepresents wnthe wnevents wnor wnactivities wnof wnthe wnorganization, wnit wnis
wnrepresentative wnof wnthe wncharacteristic wnof
A) relevancy.
B) timeliness.
2
, C) understandability.
D) reliability.
3
