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ACCOUNTING INFORMATION SYSTEM 1ST EDITION
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CHAPTER01: ACCOUNTING AS INFORMATION
1) Accounting communicates to stakeholders
A) minimallyrequired public financial data.
B) thefinancialoutcomesofoperating,investing, andfinancingactivities. oa




C) thesalesstrategyfortheoperating,marketing, andsalesactivities.
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D) blackandwhitedetailsabouttheeconomicsofoperating
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activities.Answer: B
Diff:1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply
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ofinformation.
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SectionReference:Whyis Accounting Information Important?AACSB:
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Communication
Bloom's:
ComprehensionAICPA: rl



AC:Reporting

2) Accountingcommunicatesthefinancialoutcomesofabusiness'sactivitiesfor
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A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoicesare
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correct.Answer: D
Diff:1
LearningObjective: 1.1Explainhowaccountingaffects boththedemand forandsupply oa oa




ofinformation.
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SectionReference:Whyis Accounting Information Important?AACSB:
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Communication
Bloom's:
ComprehensionAICPA: rl



AC:Reporting

3) In what waydo management teamsuseaccountingdata?
A) Managementteamsuse accountingdatatomakebusinessdecisions.
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B) Managementteamsuseaccountingdatatomakeandexecuteplans.
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C) Managementteamsuseeconomicand accountingdatatogethertomake decisions.
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D) Alloftheseanswerchoicesare
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correct.Answer: D
Diff:1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply
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ofinformation.
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SectionReference: WhyisAccountingInformation Important?AACSB:
Analytic
Bloom's: Comprehension
AICPA: AC:RiskAssessment,Analysis,andManagement



1

,4) Whichstatementis TRUE?
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A) Accountingconsists ofrigidblack and white rules.
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B) Accountants crunchnumbers,notmakedecisions.
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C) Accountinghelpssupport aprosperous society.
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D) Accountantsfocusondebitsand credits,notbusiness oa oa




activities.Answer: C
Diff:1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply oa oa oa




ofinformation.
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SectionReference:WhyisAccounting Information Important?AACSB: oa




Analytic
Bloom's:
ComprehensionAICPA: rl



N/A

5) WhichofthefollowingisNOTacomponent of aninformation system?
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A) Hardware
B) Software
C) Input
D) Network
Answer: C
Diff: 1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply oa oa oa




ofinformation.
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SectionReference:WhyisAccounting Information Important?AACSB: oa




Analytic
Bloom's: Knowledge
AICPA: AC:Systemsand Process Management oa oa




6) Inputto an informationsystemconsists of
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A) rawand unorganized data.
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B) hardwareand software. oa




C) reported information.
D) processeddata.
Answer: A
Diff: 1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply oa oa oa




ofinformation.
rl



SectionReference:Whyis Accounting Information Important?AACSB: oa oa




Analytic
Bloom's: Knowledge
AICPA: AC:SystemsandProcessManagement

7) Whichofthefollowingis a definitionofoutputfrom aninformationsystem? a
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A) Outputis raw and unorganizeddata.
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B) Outputisinformation produced byprocessingdata. oa




C) Output isdatabasefactsandfigures.
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D) Outputis information collectedfrom
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2

,users.Answer: B




3

, Diff:1
LearningObjective: 1.1Explain howaccountingaffects boththedemand forandsupply
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ofinformation.
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SectionReference:WhyisAccounting Information Important?AACSB: oa




Analytic
Bloom's: Comprehension
AICPA: AC:SystemsandProcessManagement

8) Whichstatement concerningdata is TRUE?
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A) Datais useless to abusinessuntiltransformedinto information.
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B) Dataistheoutput from an informationsystem.
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C) Dataisorganizedintounderstandableformats.
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D) Dataisprocessedbeforebeinginputintotheinformation
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system.Answer: A
Diff:1
LearningObjective: 1.1 Explain howaccounting affectsboththedemand forand supply
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ofinformation.
SectionReference:Whyis Accounting Information Important?AACSB:
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Analytic
Bloom's: Comprehension
AICPA: AC:SystemsandProcessManagement

9) Whichofthefollowingactivitieswould NOTresultina transaction inan oa oa oa




accountinginformation system?
A) Sellgoodstoacustomeronaccount
B) Purchasesuppliesoncredit
C) Prepayforsix months of insurance
D) Receiveacustomer oa




orderAnswer: D
Diff:2
LearningObjective: 1.1 Explainhowaccounting affectsboththedemand forand supply oa oa oa




ofinformation.
SectionReference:Whyis Accounting Information Important?AACSB:
oa oa




Analytic
Bloom's: Application
AICPA: AC:SystemsandProcessManagement




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