[TEST BANK] ACCOUNTING INFORMATION SYSTEMS, 15TH EDITION BY ROMNEY, STEINBART, SUMMERS, WOOD

[TEST BANK] ACCOUNTING
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ww INFORMATION SYSTEMS, 15TH ww ww




wwEDITION BY ROMNEY,
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ww STEINBART, SUMMERS, WOOD
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, Chapter 1 ww w w Accounting Information Systems: An Overview ww ww ww ww




1.1 Distinguish data from information, discuss the characteristics of useful information,
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and explain how to determine the value of information.
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1) Which of the following statements below shows the contrast between data
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and information?
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A) Data is the output of an AIS.
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B) Information is the primary output of an AIS. ww ww ww ww ww ww ww



C) Data is more useful in decision making than information.
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D) Data and information are the same.
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Answer: w w B

2) Information is best described as ww ww ww ww




A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as data.
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Answer: w w B

3) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value chain.
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Answer: w w C

4) An accounting information system (AIS) processes
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.
A) data; information ww



B) data; transactions ww



C) information; data ww



D) data;

benefits
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ww Answer: A w w




5) information reduces uncertainty, improves decision makers' ability to ww ww ww ww ww ww ww



make predictions, or confirms expectations.
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A) Timely
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,B) Reliable
C) Relevant
D) Complete

ww Answer:

w w C

6) Information that is free from error or bias and accurately represents the events or
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activities of the organization is
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A) relevant.
B) reliable / Faithful Representation.
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C) verifiable.
D) timely.

Answer: w w B

7) Information that does not omit important aspects of the underlying events or
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activities that it measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.

Answer: w w A

8) Information is ww ww when two knowledgeable people independently produce
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the same information.
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A) verifiable
B) relevant
C) reliable
D) complete

ww Answer:

w w A

9) Data must be converted into information to be considered useful and meaningful
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for decision making. There are six characteristics that make information both useful
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and meaningful. If information is free from error or bias and accurately represents the
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events or activities of the organization, it is representative of the characteristic of
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A) relevancy.
B) timeliness.
C) understandability.
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, D) reliability.




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