Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage

1

, Instant
Accounting Information Systems, 1e mm mm mm


(Savage) Chapter 1 Accounting as
mm mm mm mm
Access All
mm mm

Information
mm



mm Chapters
1) Accounting communicates to stakeholders mm mm mm


A) minimally required public financial data. mm mm mm mm


B) the financial outcomes of operating, investing, and financing activities.
mm mm mm mm mm mm mm mm


C) the sales strategy for the operating, marketing, and sales activities.
mm mm mm mm mm mm mm mm mm


D) black and white details about the economics of operating
mm mm mm mm mm mm mm mm


activities. Answer:
mm B mm m m


Diff: 1 mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: Why is Accounting Information Important?
mm m m mm mm mm mm


AACSB:
mm Communication m m


Bloom's:
m Comprehension
m


AICPA:
mm AC: m m


Reporting
mm




2) Accounting communicates the financial outcomes of a business's activities for
mm mm mm mm mm mm mm mm mm


A) operating.
B) investing.
C) financing.
D) All of these answer choices are
mm mm mm mm mm


correct. Answer:
mm D mm m m


Diff: 1 mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: Why is Accounting Information Important?
mm m m mm mm mm mm


AACSB:
mm Communication m m


Bloom's:
m Comprehension
m


AICPA:
mm AC: m m


Reporting
mm




3) In what way do management teams use accounting data?
mm mm mm mm mm mm mm mm


A) Management teams use accounting data to make business decisions.
mm mm mm mm mm mm mm mm


B) Management teams use accounting data to make and execute plans.
mm mm mm mm mm mm mm mm mm


C) Management teams use economic and accounting data together to make decisions.
mm mm mm mm mm mm mm mm mm mm


D) All of these answer choices are
mm mm mm mm mm


correct. Answer:
mm D mm m m


Diff: 1 mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: Why is Accounting Information Important?
mm m m mm mm mm mm


AACSB:
mm Analytic m m


Bloom's: Comprehension m m m m


AICPA: AC: Risk Assessment, Analysis, and Management
m m m m mm mm mm mm mm




2

,4) Which statement is TRUE?
mm mm mm


A) Accounting consists of rigid black and white rules.
mm mm mm mm mm mm mm


B) Accountants crunch numbers, not make decisions.
mm mm mm mm mm


C) Accounting helps support a prosperous society.
mm mm mm mm mm


D) Accountants focus on debits and credits, not business
mm mm mm mm mm mm mm


activities. Answer:
mm C mm m m


Diff: 1 mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: mm Why is Accounting Information Important?
m m mm mm mm mm


AACSB:
mm Analytic m m


Bloom's:
m Comprehension
m


AICPA:
mm N/A m m




5) Which of the following is NOT a component of an information system?
mm mm mm mm mm mm mm mm mm mm mm


A) Hardware
B) Software
C) Input
D) Network
Answer:
mm


C Diff: 1
mm mm mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: mmWhy is Accounting Information Important?
m m mm mm mm mm


AACSB:
mm Analytic m m


Bloom's: Knowledge m m m m


AICPA: AC: Systems and Process Management
m m m m mm mm mm mm




6) Input to an information system consists of
mm mm mm mm mm mm


A) raw and unorganized data.
mm mm mm


B) hardware and software. mm mm


C) reported information. mm


D) processed
data. Answer:
mm mm


m A m


Diff: 1 mm


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply
mm m m mm mm mm mm mm mm mm mm mm mm


of information.
mm mm


Section Reference: mm Why is Accounting Information Important?
m m mm mm mm mm


AACSB:
mm Analytic m m


Bloom's: Knowledge m m m m


AICPA: AC: Systems and Process Management
m m m m mm mm mm mm




7) Which of mm mm the following is a definition of output from an information system?
mm mm mm mm mm mm mm mm mm mm


A) Output is mm mm raw and unorganized data.
mm mm mm


B) Output is mm mm information produced by processing data.
mm mm mm mm


C) Output is mm mm database facts and figures.
mm mm mm




3

, D) Output is information collected from
mm mm mm mm


users. Answer:
mm mm B m m




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