[TEST BANK] ACCOUNTING
i.d i.d
i.d INFORMATIONSYSTEMS,15TH i.d i.d
EDITION BY ROMNEY,
i.d i.d i.d
i.d STEINBART,SUMMERS,WOOD
i.d i.d
, Chapter1 i.d i . d AccountingInformationSystems:AnOverview i.d i.d i.d i.d
1.1 Distinguishdatafrominformation,discussthecharacteristicsofusefulinformation,and i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
explain how to determine the value of information.
i.d i.d i.d i.d i.d i.d i.d i.d
1) Whichofthefollowingstatementsbelowshowsthecontrastbetweendataand i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
information?
i.d
A) Data is the outputof an AIS. i.d i.d i.d i.d i.d i.d
B) Informationis theprimaryoutput ofanAIS. i.d i.d i.d i.d i.d i.d i.d
C) Data ismoreusefulin decision making than information.
i.d i.d i.d i.d i.d i.d i.d i.d
D) Dataandinformationarethesame. i.d i.d i.d i.d i.d
Answer: B i . d
2) Informationisbestdescribed as i.d i.d i.d i.d
A) rawfactsabouttransactions. i.d i.d i.d
B) datathat hasbeenorganized andprocessed sothatit ismeaningfulto theuser.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
C) facts thatareusefulwhenprocessedinatimely manner.i.d i.d i.d i.d i.d i.d i.d i.d i.d
D) the same thing as data. i.d i.d i.d i.d
Answer: B i . d
3) Thevalue ofinformation canbest bedetermined by
i.d i.d i.d i.d i.d i.d i.d i.d
A) itsusefulness todecision makers.
i.d i.d i.d i.d
B) itsrelevancetodecisionmakers.
i.d i.d i.d i.d
C) thebenefitsassociatedwithobtainingtheinformationminusthecostofproducingit.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
D) theextent towhichitoptimizes thevaluechain.
i.d i.d i.d i.d i.d i.d i.d i.d
Answer: C i . d
4) Anaccounting information system (AIS) processes
i.d i.d i.d i.d i.d i.d toprovideusers with
i.d i.d i.d
.
A) data;information i.d
B) data;transactions i.d
C) information; data i.d
D) data;benefits i.d
Answer: A
i.d i . d
5) informationreducesuncertainty,improvesdecisionmakers'abilitytomake i.d i.d i.d i.d i.d i.d i.d i.d
predictions, or confirms expectations.
i.d i.d i.d i .d
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: C
i.d i . d
6) Informationthatisfreefromerrororbiasandaccuratelyrepresentstheeventsoractivities of the
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
organization is
i.d i.d
A) relevant.
B) reliable/FaithfulRepresentation. i.d i.d i.d
C) verifiable.
D) timely.
Answer: B i . d
7) Informationthat doesnot omitimportantaspectsof theunderlying eventsoractivities that
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
it measures is
i.d i.d i.d
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A i . d
8) Information is i.d i.d whentwoknowledgeablepeopleindependentlyproducethei.d i.d i.d i.d i.d i.d
same information.
i.d i.d
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
i.d i . d
9) Data must be converted into information to be considered useful and meaningful for
i.d i.d i.d i .d i.d i.d i.d i .d i.d i.d i.d i.d
decision making. There are six characteristics that make information both useful and
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i .d
meaningful. Ifinformationisfreefromerrororbias andaccuratelyrepresentstheeventsor
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
activities of the organization, it is representative of the characteristic of
i.d i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D i . d
10) Inventoryinformationisprovidedinrealtimebyafirm'saccountinginformationsystem. The i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
accuracy of this information is questionable, however, since the production manager often
i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d i.d i.d
reports stock outs of components that the system indicates are in stock. Which of the following
i.d i.d i.d i .d i.d i .d i.d i.d i.d i.d i.d i .d i.d i.d i.d i.d
characteristics of useful information is absent in the situation described above?
i.d i.d i.d i .d i.d i.d i.d i.d i .d i.d i.d
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
i.d Answer: B i . d
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of the i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d i .d i .d i.d i .d
firm recently changedhands and the new owners areconducting anaudit of the financial records.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
The audit has been unable to reproduce financialreports that were prepared by Ms. Metrejean.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies
i.d i.d i.d i.d i.d i .d i.d i.d i.d i.d i.d i.d i.d i.d
might contribute to poor decisions. Which of the following characteristics of useful information
i.d i.d i.d i .d i.d i .d i.d i.d i.d i .d i.d i.d i .d
is absent in the situation described above?
i.d i.d i.d i.d i .d i.d i.d
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
i.d Answer: F i . d
12) In 2003, Singh Manufacturing implemented a Web-based information system that allows all
i.d i.d i .d i.d i.d i.d i .d i.d i.d i.d i.d
employeestoaccessmission-criticalinformation.Theintentionwastoincreaseproduction
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs
i.d i .d i.d i.d i .d i.d i.d i.d i.d i.d i .d i .d i.d i.d
increased.ShamanGupta,thedirectorofinformationtechnologyservices,askedAshlee Wells to
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her
i.d i.d i .d i.d i.d i.d i.d i.d i.d i.d i .d i.d i.d i .d i.d i .d i.d i.d
opinion is valued by her peers and by her supervisor.
i.d i .d i.d i.d i.d i.d i .d i.d i.d i.d
"So Ashlee, how's it going down there inthe shop?"
i.d i.d i.d i.d i.d i.d i.d i.d i.d
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production.
i.d i.d i.d i.d i.d i .d i.d i .d i .d i.d i.d i.d i.d i.d i.d i .d i.d i .d i.d
Now,wegotthatcomputersystem.Mostofuscan'tfigureouthowtouseittodo our jobs. Is there
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
some way to print out a pick list?"
i.d i.d i.d i .d i.d i.d i.d i.d
3
i.d i.d
i.d INFORMATIONSYSTEMS,15TH i.d i.d
EDITION BY ROMNEY,
i.d i.d i.d
i.d STEINBART,SUMMERS,WOOD
i.d i.d
, Chapter1 i.d i . d AccountingInformationSystems:AnOverview i.d i.d i.d i.d
1.1 Distinguishdatafrominformation,discussthecharacteristicsofusefulinformation,and i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
explain how to determine the value of information.
i.d i.d i.d i.d i.d i.d i.d i.d
1) Whichofthefollowingstatementsbelowshowsthecontrastbetweendataand i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
information?
i.d
A) Data is the outputof an AIS. i.d i.d i.d i.d i.d i.d
B) Informationis theprimaryoutput ofanAIS. i.d i.d i.d i.d i.d i.d i.d
C) Data ismoreusefulin decision making than information.
i.d i.d i.d i.d i.d i.d i.d i.d
D) Dataandinformationarethesame. i.d i.d i.d i.d i.d
Answer: B i . d
2) Informationisbestdescribed as i.d i.d i.d i.d
A) rawfactsabouttransactions. i.d i.d i.d
B) datathat hasbeenorganized andprocessed sothatit ismeaningfulto theuser.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
C) facts thatareusefulwhenprocessedinatimely manner.i.d i.d i.d i.d i.d i.d i.d i.d i.d
D) the same thing as data. i.d i.d i.d i.d
Answer: B i . d
3) Thevalue ofinformation canbest bedetermined by
i.d i.d i.d i.d i.d i.d i.d i.d
A) itsusefulness todecision makers.
i.d i.d i.d i.d
B) itsrelevancetodecisionmakers.
i.d i.d i.d i.d
C) thebenefitsassociatedwithobtainingtheinformationminusthecostofproducingit.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
D) theextent towhichitoptimizes thevaluechain.
i.d i.d i.d i.d i.d i.d i.d i.d
Answer: C i . d
4) Anaccounting information system (AIS) processes
i.d i.d i.d i.d i.d i.d toprovideusers with
i.d i.d i.d
.
A) data;information i.d
B) data;transactions i.d
C) information; data i.d
D) data;benefits i.d
Answer: A
i.d i . d
5) informationreducesuncertainty,improvesdecisionmakers'abilitytomake i.d i.d i.d i.d i.d i.d i.d i.d
predictions, or confirms expectations.
i.d i.d i.d i .d
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer: C
i.d i . d
6) Informationthatisfreefromerrororbiasandaccuratelyrepresentstheeventsoractivities of the
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
organization is
i.d i.d
A) relevant.
B) reliable/FaithfulRepresentation. i.d i.d i.d
C) verifiable.
D) timely.
Answer: B i . d
7) Informationthat doesnot omitimportantaspectsof theunderlying eventsoractivities that
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
it measures is
i.d i.d i.d
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A i . d
8) Information is i.d i.d whentwoknowledgeablepeopleindependentlyproducethei.d i.d i.d i.d i.d i.d
same information.
i.d i.d
A) verifiable
B) relevant
C) reliable
D) complete
Answer: A
i.d i . d
9) Data must be converted into information to be considered useful and meaningful for
i.d i.d i.d i .d i.d i.d i.d i .d i.d i.d i.d i.d
decision making. There are six characteristics that make information both useful and
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i .d
meaningful. Ifinformationisfreefromerrororbias andaccuratelyrepresentstheeventsor
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
activities of the organization, it is representative of the characteristic of
i.d i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D i . d
10) Inventoryinformationisprovidedinrealtimebyafirm'saccountinginformationsystem. The i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
accuracy of this information is questionable, however, since the production manager often
i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d i.d i.d
reports stock outs of components that the system indicates are in stock. Which of the following
i.d i.d i.d i .d i.d i .d i.d i.d i.d i.d i.d i .d i.d i.d i.d i.d
characteristics of useful information is absent in the situation described above?
i.d i.d i.d i .d i.d i.d i.d i.d i .d i.d i.d
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
i.d Answer: B i . d
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of the i.d i.d i.d i.d i.d i.d i.d i.d i .d i.d i .d i .d i.d i .d
firm recently changedhands and the new owners areconducting anaudit of the financial records.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
The audit has been unable to reproduce financialreports that were prepared by Ms. Metrejean.
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies
i.d i.d i.d i.d i.d i .d i.d i.d i.d i.d i.d i.d i.d i.d
might contribute to poor decisions. Which of the following characteristics of useful information
i.d i.d i.d i .d i.d i .d i.d i.d i.d i .d i.d i.d i .d
is absent in the situation described above?
i.d i.d i.d i.d i .d i.d i.d
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
i.d Answer: F i . d
12) In 2003, Singh Manufacturing implemented a Web-based information system that allows all
i.d i.d i .d i.d i.d i.d i .d i.d i.d i.d i.d
employeestoaccessmission-criticalinformation.Theintentionwastoincreaseproduction
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs
i.d i .d i.d i.d i .d i.d i.d i.d i.d i.d i .d i .d i.d i.d
increased.ShamanGupta,thedirectorofinformationtechnologyservices,askedAshlee Wells to
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
come in and talk with him about the system. Ashlee is a long-time employee of Singh, and her
i.d i.d i .d i.d i.d i.d i.d i.d i.d i.d i .d i.d i.d i .d i.d i .d i.d i.d
opinion is valued by her peers and by her supervisor.
i.d i .d i.d i.d i.d i.d i .d i.d i.d i.d
"So Ashlee, how's it going down there inthe shop?"
i.d i.d i.d i.d i.d i.d i.d i.d i.d
"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production.
i.d i.d i.d i.d i.d i .d i.d i .d i .d i.d i.d i.d i.d i.d i.d i .d i.d i .d i.d
Now,wegotthatcomputersystem.Mostofuscan'tfigureouthowtouseittodo our jobs. Is there
i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d i.d
some way to print out a pick list?"
i.d i.d i.d i .d i.d i.d i.d i.d
3
