TEST BANK
Page 1
, Chapter 01: Accounting as Information
1) Accounting communicates to stakeholders
A) minimally required public financial data.
B) the financial outcomes of operating, investing, and financing activities.
C) the sales strategy for the operating, marketing, and sales activities.
D) black and white details about the economics of operating activities.
Answer: B Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
m's: Comprehension AICPA: AC: Reporting
2) Accounting communicates the financial outcomes of a business's activities for
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
Answer: D Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
m's: Comprehension AICPA: AC: Reporting
3) In what way do management teams use accounting data?
A) Management teams use accounting data to make business decisions.
B) Management teams use accounting data to make and execute plans.
C) Management teams use economic and accounting data together to make decisions.
D) All of these answer choices are correct. Answer: D
Test Bank Page 2
,Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
4) Which statement is TRUE?
A) Accounting consists of rigid black and white rules.
B) Accountants crunch numbers, not make decisions.
C) Accounting helps support a prosperous society.
D) Accountants focus on debits and credits, not business activities. Answer:
C Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Comprehension AICPA: N/A
5) Which of the following is NOT a component of an information system?
A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Knowledge
AICPA: AC: Systems and Process Management
Test Bank Page 3
, 6) Input to an information system consists of
A) raw and unorganized data.
Test Bank Page 4
Page 1
, Chapter 01: Accounting as Information
1) Accounting communicates to stakeholders
A) minimally required public financial data.
B) the financial outcomes of operating, investing, and financing activities.
C) the sales strategy for the operating, marketing, and sales activities.
D) black and white details about the economics of operating activities.
Answer: B Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
m's: Comprehension AICPA: AC: Reporting
2) Accounting communicates the financial outcomes of a business's activities for
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
Answer: D Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloo
m's: Comprehension AICPA: AC: Reporting
3) In what way do management teams use accounting data?
A) Management teams use accounting data to make business decisions.
B) Management teams use accounting data to make and execute plans.
C) Management teams use economic and accounting data together to make decisions.
D) All of these answer choices are correct. Answer: D
Test Bank Page 2
,Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
4) Which statement is TRUE?
A) Accounting consists of rigid black and white rules.
B) Accountants crunch numbers, not make decisions.
C) Accounting helps support a prosperous society.
D) Accountants focus on debits and credits, not business activities. Answer:
C Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Comprehension AICPA: N/A
5) Which of the following is NOT a component of an information system?
A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of inf
ormation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloo
m's: Knowledge
AICPA: AC: Systems and Process Management
Test Bank Page 3
, 6) Input to an information system consists of
A) raw and unorganized data.
Test Bank Page 4
