Test Bank for Accounting Information Systems, 13e Marshall Romney Paul Steinbart

Test Bank for Accounting Information Systems, 13e Marshall Romney Paul Steinbart-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 Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 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 Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 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 Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytic 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 Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 2 5) information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations. A) Timely B) Reliable C) Relevant D) Complete Answer: C 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) relevant. B) reliable. C) verifiable. D) timely. Answer: B 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) complete. B) accessible. C) relevant. D) timely. Answer: A Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 8) Information is when two knowledgeable people independently produce the same information. A) verifiable B) relevant C) reliable D) complete Answer: A Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic