Test Bank for Accounting Information Systems 1st Edition by Arline Savage – Complete Exam Prep

Test Bank for Accounting Info Edition by Arline
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A. Savage
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TEST BANK FOR ACCOUNTING INFORMATIO
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N SYSTEM
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1ST EDITION BY ARLINE SAVAGE A+
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, Chapter 01: Accounting as Information u u u u




1) Accounting communicates to stakeholders
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A) minimally required public financial data.
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B) the financial outcomes of operating, investing, andfi
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nancing activities. u




C) the sales strategy for the operating, marketing, andsa
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les activities.
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D) black and white details about the economics ofoperat
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ng activities. Answer: B
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Diff: 1
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Learning Objective: 1.1 Explain how

,accounting affects both the demand for and supu u u u u u u




ply of information.
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Section Reference: Why is Accounting Inform
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ation Important? AACSB:Communication Bl
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oom's: ComprehensionAICPA: AC: Reportin
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g

2) Accounting communicates the financial outcomeso u u u u u




f a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: DDi
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ff: 1
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Learning Objective: 1.1 Explain how accounti
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ng affects both the demand for and supply of inf
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ormation.
Section Reference: Why is Accounting Inform
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ation Important? AACSB:Communication Bl
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oom's: Comprehension u

, AICPA: AC: Reporting
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3) In what way do management teams use accountingda
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ta?
A) Management teams use accounting data to makeb
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usiness decisions.u




B) Management teams use accounting data to makea
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nd execute plans.
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C) Management teams use economic and accountingd
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ata together to make decisions.
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A+ Page 1
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