Test Bank
for ACCOUNTING
INFORMATION SYSTEMS
15th Edition
By Marshall B Romney, Paul J. Steinbart, Scott L. Summers, David A. Wood
,Table of Contents
Chapter 1 Accounting Information Systems: An Overview
Chapter 2 Overview of Transaction Processing and Enterprise Resource
Chapter 3 Systems Documentation Techniques
Chapter 4 Relational Databases
Chapter 5 Computer Fraud
Chapter 6 Computer Fraud and Abuse Techniques
Chapter 7 Control and Accounting Information Systems
Chapter 8 Controls for Information Security
Chapter 9 Confidentiality and Privacy Controls
Chapter 10 Processing Integrity and Availability Controls
Chapter 12 The Revenue Cycle: Sales to Cash Collections
Chapter 13 The Expenditure Cycle: Purchasing to Cash Disbursements
Chapter 14 The Production Cycle
Chapter 16 General Ledger and Reporting System
Chapter 17 Database Design Using the REA Data Model
Chapter 18 Implementing an REA Model in a Relational Database
Chapter 19 Special Topics in REA Modeling
, Chapter 1 Accounting Information Systems: An Overview
1.1 Distinguish data from information, discuss the characteristics of useful information, and
explain how to determine the value of information.
1) Which of the following statements below shows the contrast between data and
information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) Information is best described as
A) raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Answer: C
4) An accounting information system (AIS) processes ________ to provide users with
________.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
1
, B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or activities
of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
7) Information that does not omit important aspects of the underlying events or activities
that it measures is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is ________ when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
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) timeliness.
C) understandability.
D) reliability.
2
for ACCOUNTING
INFORMATION SYSTEMS
15th Edition
By Marshall B Romney, Paul J. Steinbart, Scott L. Summers, David A. Wood
,Table of Contents
Chapter 1 Accounting Information Systems: An Overview
Chapter 2 Overview of Transaction Processing and Enterprise Resource
Chapter 3 Systems Documentation Techniques
Chapter 4 Relational Databases
Chapter 5 Computer Fraud
Chapter 6 Computer Fraud and Abuse Techniques
Chapter 7 Control and Accounting Information Systems
Chapter 8 Controls for Information Security
Chapter 9 Confidentiality and Privacy Controls
Chapter 10 Processing Integrity and Availability Controls
Chapter 12 The Revenue Cycle: Sales to Cash Collections
Chapter 13 The Expenditure Cycle: Purchasing to Cash Disbursements
Chapter 14 The Production Cycle
Chapter 16 General Ledger and Reporting System
Chapter 17 Database Design Using the REA Data Model
Chapter 18 Implementing an REA Model in a Relational Database
Chapter 19 Special Topics in REA Modeling
, Chapter 1 Accounting Information Systems: An Overview
1.1 Distinguish data from information, discuss the characteristics of useful information, and
explain how to determine the value of information.
1) Which of the following statements below shows the contrast between data and
information?
A) Data is the output of an AIS.
B) Information is the primary output of an AIS.
C) Data is more useful in decision making than information.
D) Data and information are the same.
Answer: B
2) Information is best described as
A) raw facts about transactions.
B) data that has been organized and processed so that it is meaningful to the user.
C) facts that are useful when processed in a timely manner.
D) the same thing as data.
Answer: B
3) The value of information can best be determined by
A) its usefulness to decision makers.
B) its relevance to decision makers.
C) the benefits associated with obtaining the information minus the cost of producing it.
D) the extent to which it optimizes the value chain.
Answer: C
4) An accounting information system (AIS) processes ________ to provide users with
________.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
Answer: A
5) ________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
1
, B) Reliable
C) Relevant
D) Complete
Answer: C
6) Information that is free from error or bias and accurately represents the events or activities
of the organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Answer: B
7) Information that does not omit important aspects of the underlying events or activities
that it measures is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information is ________ when two knowledgeable people independently produce the
same information.
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
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) timeliness.
C) understandability.
D) reliability.
2
