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