1
,TEST BANK st
Accounting Information System 1st Edition st st st st
Chapter 01: Accounting as Information st s t st st
1) Accounting communicates to stakeholders st st st
A) minimally required public financial data. st st st st
B) the financial outcomes of operating, investing, and financing activities.
st st st st st st st st
C) the sales strategy for the operating, marketing, and sales activities.
st st st st st st st st st
D) black and white details about the economics of operating activities. A
st st st st st st st st st st
nswer: B s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Communication
s t
Bloom's: Comprehension s t s
AICPA: AC: Reporting
t s t st
2) Accounting communicates the financial outcomes of a business's activities for
st st st st st st st st st
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
st st st st st st st
Answer: D s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Communication
s t
Bloom's: Comprehension s t s
AICPA: AC: Reporting
t s t st
3) In what way do management teams use accounting data?
st st st st st st st st
A) Management teams use accounting data to make business decisions. st st st st st st st st
B) Management teams use accounting data to make and execute plans. st st st st st st st st st
C) Management teams use economic and accounting data together to make decisions. st st st st st st st st st st
D) All of these answer choices are correct.
st st st st st st st
Answer: D s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Risk Assessment, Analysis, and Management
s t s t st st st st st
2
,4) Which statement is TRUE? st st st
A) Accounting consists of rigid black and white rules. st st st st st st st
B) Accountants crunch numbers, not make decisions. st st st st st
C) Accounting helps support a prosperous society. st st st st st
D) Accountants focus on debits and credits, not business activities. A st st st st st st st st st
nswer: C s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s
AICPA: N/A
t s t
5) Which of the following is NOT a component of an information system?
st st st st st st st st st st st
A) Hardware
B) Software
C) Input
D) Network s
Answer: C
t st st
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Knowledge s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
6) Input to an information system consists of
st st st st st st
A) raw and unorganized data.
st st st
B) hardware and software. st st
C) reported information. st
D) processed data. st
Answer: A s t s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Knowledge s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data. st st st st st
B) Output is information produced by processing data.
st st st st st st
C) Output is database facts and figures. st st st st st
D) Output is information collected from users. st st st st st st
Answer: B s t
3
, Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
8) Which statement concerning data is TRUE?
st st st st st
A) Data is useless to a business until transformed into information.
st st st st st st st st st
B) Data is the output from an information system.
st st st st st st st
C) Data is organized into understandable formats.
st st st st st
D) Data is processed before being input into the information system. A
st st st st st st st st st st
nswer: A s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
9) Which of the following activities would NOT result in a transaction in an accounting inf
st st st st st st st st st st st st st st
ormation system? st
A) Sell goods to a customer on account
st st st st st st
B) Purchase supplies on credit st st st
C) Prepay for six months of insurance st st st st st
D) Receive a customer order st st st st
Answer: D s t
Diff: 2 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Application s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
4
,TEST BANK st
Accounting Information System 1st Edition st st st st
Chapter 01: Accounting as Information st s t st st
1) Accounting communicates to stakeholders st st st
A) minimally required public financial data. st st st st
B) the financial outcomes of operating, investing, and financing activities.
st st st st st st st st
C) the sales strategy for the operating, marketing, and sales activities.
st st st st st st st st st
D) black and white details about the economics of operating activities. A
st st st st st st st st st st
nswer: B s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Communication
s t
Bloom's: Comprehension s t s
AICPA: AC: Reporting
t s t st
2) Accounting communicates the financial outcomes of a business's activities for
st st st st st st st st st
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
st st st st st st st
Answer: D s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Communication
s t
Bloom's: Comprehension s t s
AICPA: AC: Reporting
t s t st
3) In what way do management teams use accounting data?
st st st st st st st st
A) Management teams use accounting data to make business decisions. st st st st st st st st
B) Management teams use accounting data to make and execute plans. st st st st st st st st st
C) Management teams use economic and accounting data together to make decisions. st st st st st st st st st st
D) All of these answer choices are correct.
st st st st st st st
Answer: D s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Risk Assessment, Analysis, and Management
s t s t st st st st st
2
,4) Which statement is TRUE? st st st
A) Accounting consists of rigid black and white rules. st st st st st st st
B) Accountants crunch numbers, not make decisions. st st st st st
C) Accounting helps support a prosperous society. st st st st st
D) Accountants focus on debits and credits, not business activities. A st st st st st st st st st
nswer: C s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s
AICPA: N/A
t s t
5) Which of the following is NOT a component of an information system?
st st st st st st st st st st st
A) Hardware
B) Software
C) Input
D) Network s
Answer: C
t st st
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Knowledge s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
6) Input to an information system consists of
st st st st st st
A) raw and unorganized data.
st st st
B) hardware and software. st st
C) reported information. st
D) processed data. st
Answer: A s t s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Knowledge s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
7) Which of the following is a definition of output from an information system?
st st st st st st st st st st st st
A) Output is raw and unorganized data. st st st st st
B) Output is information produced by processing data.
st st st st st st
C) Output is database facts and figures. st st st st st
D) Output is information collected from users. st st st st st st
Answer: B s t
3
, Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
8) Which statement concerning data is TRUE?
st st st st st
A) Data is useless to a business until transformed into information.
st st st st st st st st st
B) Data is the output from an information system.
st st st st st st st
C) Data is organized into understandable formats.
st st st st st
D) Data is processed before being input into the information system. A
st st st st st st st st st st
nswer: A s t
Diff: 1 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Comprehension s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
9) Which of the following activities would NOT result in a transaction in an accounting inf
st st st st st st st st st st st st st st
ormation system? st
A) Sell goods to a customer on account
st st st st st st
B) Purchase supplies on credit st st st
C) Prepay for six months of insurance st st st st st
D) Receive a customer order st st st st
Answer: D s t
Diff: 2 st
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
st s t st st st st st st st st st st st st
ion.
Section Reference: Why is Accounting Information Important? AACS
st s t st st st st st
B: Analytic
s t
Bloom's: Application s t s t
AICPA: AC: Systems and Process Management
s t s t st st st st
4
