TEST BANK FOR ACCOUNTING INFORMATION SYSTEMS, 16TH EDITION BY ROMNEY, STEINBART, SUMMERS, WOOD – ALL CHAPTERS 1-24 (VERIFIED)

TEST BANK FOR ACCOUNTING INFORMATION SYSTEMS, 16TH EDITION BY ROMNEY, STEINBART, SUMMERS, WOOD – ALL CHAPTERS 1-24 (VERIFIED) 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. 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. 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. Answer: C 1 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A 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. 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. Answer: A 8) Information is ________ when two knowledgeable people independently produce the same information. A) verifiable B) relevant C) reliable D) complete Answer: A 9) Data must be converted into information to be considered useful and meaningful for decision making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of A) relevancy. B) timeliness. C) understandability. 2 D) reliability. Answer: D 10) zInventory zinformation ziszprovided zin zreal ztime zby za zfirm'szaccounting zinformation zsystem. zThe zaccuracy zof zthiszinformation ziszquestionable, zhowever, zsince zthe zproduction zmanager zoften zreportszstock zoutszof zcomponentszthat zthe zsystem zindicateszare zin zstock. zWhich zof zthe zfollowing zcharacteristicszof zuseful zinformation ziszabsent zin zthe zsituation zdescribed zabove? zA) zrelevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: z zB 11) zCheryl zMetrejean zhaszbeen zthe zcontroller zof zDowntown zTires zfor z25 zyears. zOwnership zof zthe zfirm zrecently zchanged zhandszand zthe znew zownerszare zconducting zan zaudit zof zthe zfinancial zrecords. zThe zaudit zhaszbeen zunable zto zreproduce zfinancial zreports zthat zwere zprepared zby zMs. zMetrejean. zWhile zthere ziszno zevidence zof zwrongdoing, zthe zauditorszare zconcerned zthat zthe zdiscrepancieszmight zcontribute zto zpoor zdecisions. zWhich zof zthe zfollowing zcharacteristicszof zuseful zinformation ziszabsent zin zthe zsituation zdescribed zabove? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: z zF 5) ________ information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations. A) Timely B) Reliable 3 C) Relevant D) Complete Answer: C 12) zIn z2003, zSingh zManufacturing zimplemented za zWeb-based zinformation zsystem zthat zallowszall zemployeeszto zaccesszmission-critical zinformation. zThe zintention zwaszto zincrease zproduction zefficiency. zUnfortunately, zit zhad zthe zopposite zeffect, zaszdeliveries zfell zbehind zschedule zand zcostszincreased. zShaman zGupta, zthe zdirector zof zinformation ztechnology zservices, zasked zAshlee zWellszto zcome zin zand ztalk zwith zhim zabout zthe zsystem. zAshlee zisza zlong-time zemployee zof zSingh, zand zher zopinion ziszvalued zby zher zpeerszand zby zher zsupervisor. z "So zAshlee, zhow'szit zgoing zdown zthere zin zthe zshop?" z "Not zso zgood, zShaman. zUsed zto zbe zwe zgot za zweekly zpick zlist zso zwe zknew zhow zto zplan zproduction. zNow, zwe zgot zthat zcomputer zsystem. zMost zof zuszcan't zfigure zout zhow zto zuse zit zto zdo zour zjobs. zIszthere zsome zway zto zprint zout za zpick zlist?" z Shaman zthought zfor za zwhile zbefore zresponding. z"Well, zAshlee, zto ztell zyou zthe ztruth, zI'm znot zso zsure zhow zto zdo zit zmyself, zbut zthere zmust zbe za zway. zWe'll zbring zin zthe zconsultantszthat zhelped zuszbuild zthe zsystem. zMaybe zthey zcan zhelp." z Which zof zthe zfollowing zcharacteristicszof zuseful zinformation ziszabsent zin zthe zsituation zdescribed zabove? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: z 4 zE 13) zWisconsin zDells, zWisconsin, zis za zpopular ztourist zdestination. zDuring zthe zwinter zmonths, zthe zpopulation zdwindles zto za zmeager zfew, zbut zwhen zsummer zcomes, zthe zsize zof zthe ztown zsurges. zHunter zJackson zis zthe ztown zsanitation zengineer. zWhen zthe zsize zof zthe ztown zsurges, zso zdo zhiszresponsibilities. zAmong zthem ziszmanagement zof zthe zsewage zprocessing zvolume. zIn zan zinterview zwith zthe zlocal zpaper, zHunter zcomplained zthat za zreport zon ztourist zpopulation zthat zhe zuses zto zadjust zprocessing zvolume zrefers zto zdata zthat zwaszcollected zfour zdayszago zand zit ztakeszhim za zweek zto zmake zadjustments. zWhich zof zthe zfollowing zcharacteristicszof zuseful zinformation ziszabsent zin zthe zsituation zdescribed zabove? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: z zD 15) zMessage zleftzon zvoicemail: z"Hi zNikki! zJust zlanded zat zthe zairport. zHow zabout zdinner zthiszevening zif zyou're zavailable. zCall zme!" zWhich zof zthe zfollowing zcharacteristicszof zuseful zinformation ziszabsent zin zthe zsituation zdescribed zabove? A) relevant B) reliable C) complete D) timely E) understandable F) verifiable G) accessible Answer: z zC 16) zChopra, zLimited, ziszan zIndian zcompany zoperating zin zNew zYork zstate. zIt zoffers zstylized, zboutique zpublic zrelationszserviceszto zupscale zretailerszin zquaint zNewzEngland ztowns. zAzmajor zsource zof zrevenue zisza zweekly znewsletter zthat zreportszon zcurrent zand 5 zprojected ztourist ztravel zand zspending zpatterns. zPreparation zof zthe znewsletter zrequires zstudy zand zanalysiszof zweather zconditions, zeconomic zactivity, zand ztravel zcosts. zIt zis zavailable zat zan zannual zsubscription zrate zof z$299.99. zThere zare zcurrently z190 zsubscribers. zPreparation zand zdistribution zof zthe znewsletter z costs z$12,000 zannually. zThe zvaluezofzinformation ztozsubscribersziszA)z$236.83. B) $44,998.10. C) less zthan z$63.16. D) at zleast z$300.00. Answer: z zD 17) zBagginszIncorporated zidentifiesznew zproduct zdevelopment zand zproduct zimprovement zas zthe ztop zcorporate zgoals. zAn zemployee zdeveloped zan zinnovation zthat zwill zcorrect za zshortcoming zin zone zof zthe zcompany's zproducts. zAlthough zBaggins zcurrent zReturn zon zInvestment z(ROI) zis z15%, zthe zproduct zinnovation zis zexpected zto zgenerate zROI zof zonly z12%. zAs za zresult, zthe zemployee zfails zto zfollow zup. zAs za zresult, zawarding zbonuses zto zemployeeszbased zon zROI zresulted zin zA) zgoal zconflict. B) information zoverload. C) goal zcongruence. D) decreased zvalue zof zinformation. Answer: z zA 18) zWhich zof zthe zfollowing ztradeoffszbetween zcharacteristicszof zuseful zinformation zis zleast zobjectionable? A) incomplete zinformation zreceived zon za ztimely zbasis B) irrelevant zinformation zreceived zin zan zunderstandable zformat C) unreliable zinformation zeasily zaccessible D) verifiable zinformation zreceived zin zunreadable zformat zA 19) zWhich zof zthe zfollowing zisznot zone zof zthe zthree zbasic ztypes zof zdata zabout za zspecific zsalesztransaction zthat zshould zbe zcaptured zby zan zAccounting zInformation zSystem? A) name zof zthe zemployee zwho zcompleted zthe zsale B) daily zsales zquota C) product zsold z D) date