Test Bank Accounting Information Systems, 16th Edition By Marshall B. Romney Paul John Steinbart Scott L. Summers David A. Wood All Chapters 1-24 Included

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

,Accounting Information Systems, 13e (Romney/Steinbart) 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
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
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,Objective: Learning Objective 1 Difficulty:
Easy
AACSB: Analytic




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, 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

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