Test Bank for Accounting Information
Systems 15th Edition by Marshall
Romney & Paul Steinbart
All Chapters 1-19 With Verified Q&As| A+ PASS
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish 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.
Correct Answer: B
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.
Correct Answer: B
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.
Correct Answer: C
2|Page
,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make predictions, or
confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
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. Correct Answer: A
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, 8) Informations2is whens2twos2knowledgeables2peoples2independentlys2produces2thes2sames2information.
A) verifiable
B) relevant
C) reliable
D) completes2Corrects2Answer:s2A
9) Datas2musts2bes2converteds2intos2informations2tos2bes2considereds2usefuls2ands2meaningfuls2fors2decis
ions2making.s2Theres2ares2sixs2characteristicss2thats2makes2informations2boths2usefuls2ands2meaningful.s2
Ifs2informations2iss2frees2froms2errors2ors2biass2ands2accuratelys2representss2thes2eventss2ors2activitiess2ofs
2thes2organization,s2its2iss2representatives2ofs2thes2characteristics2of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Corrects2Answer:s2D
10) Inventorys2informations2iss2provideds2ins2reals2times2bys2as2firm'ss2accountings2informations2system.
s2Thes2accuracys2ofs2thiss2informations2iss2questionable,s2however,s2sinces2thes2productions2managers2oft
ens2reportss2stocks2outss2ofs2componentss2thats2thes2systems2indicatess2ares2ins2stock.s2Whichs2ofs2thes2fo
llowings2characteristicss2ofs2usefuls2informations2iss2absents2ins2thes2situations2describeds2above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibles2Corrects2Answer:s2B
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gs2e
Systems 15th Edition by Marshall
Romney & Paul Steinbart
All Chapters 1-19 With Verified Q&As| A+ PASS
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish 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.
Correct Answer: B
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.
Correct Answer: B
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.
Correct Answer: C
2|Page
,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make predictions, or
confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
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. Correct Answer: A
3s2|s2Ps2as2
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, 8) Informations2is whens2twos2knowledgeables2peoples2independentlys2produces2thes2sames2information.
A) verifiable
B) relevant
C) reliable
D) completes2Corrects2Answer:s2A
9) Datas2musts2bes2converteds2intos2informations2tos2bes2considereds2usefuls2ands2meaningfuls2fors2decis
ions2making.s2Theres2ares2sixs2characteristicss2thats2makes2informations2boths2usefuls2ands2meaningful.s2
Ifs2informations2iss2frees2froms2errors2ors2biass2ands2accuratelys2representss2thes2eventss2ors2activitiess2ofs
2thes2organization,s2its2iss2representatives2ofs2thes2characteristics2of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Corrects2Answer:s2D
10) Inventorys2informations2iss2provideds2ins2reals2times2bys2as2firm'ss2accountings2informations2system.
s2Thes2accuracys2ofs2thiss2informations2iss2questionable,s2however,s2sinces2thes2productions2managers2oft
ens2reportss2stocks2outss2ofs2componentss2thats2thes2systems2indicatess2ares2ins2stock.s2Whichs2ofs2thes2fo
llowings2characteristicss2ofs2usefuls2informations2iss2absents2ins2thes2situations2describeds2above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessibles2Corrects2Answer:s2B
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