Test Bank for Accounting Information Systems 15th Edition – Romney & Steinbart – Practice Questions & Answers

TEST BANK m



Accounting Information Systems
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by Marshall Romney, Paul Steinbart
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15th Edition
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FULL TEST BANK!!!
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, Chapter 1 Accounting Information Systems: An Overview
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1.1 Distinguishmdatamfromminformation,mdiscussmthemcharacteristicsmofmusefulminformation,ma
ndmexplainmhowmtomdeterminemthemvaluemofminformation.

1) Whichmofmthemfollowingmstatementsmbelowmshowsmthemcontrastmbetweenmdatama
ndminformation?
A) DatamismthemoutputmofmanmAIS.
B) InformationmismthemprimarymoutputmofmanmAIS.
C) Datamismmoremusefulminmdecisionmmakingmthanminformation.
D) Datamandminformationmaremthemsame.

Answer:m B

2) Informationmismbestmdescribedmas
A) rawmfactsmaboutmtransactions.
B) datamthatmhasmbeenmorganizedmandmprocessedmsomthatmitmismmeaningfulmtomthemuser.
C) factsmthatmaremusefulmwhenmprocessedminmamtimelymmanner.
D) themsamemthingmasmdata.

Answer:m B

3) Themvaluemofminformationmcanmbestmbemdeterminedmby
A) itsmusefulnessmtomdecisionmmakers.
B) itsmrelevancemtomdecisionmmakers.
C) thembenefitsmassociatedmwithmobtainingmtheminformationmminusmthemcostmofmproducingmit.
D) themextentmtomwhichmitmoptimizesmthemvaluemchain.

Answer:m C

4) Anmaccountingminformationmsystemm(AIS)mprocesses tomprovidemusersmwith
.
A) data;minformation
B) data;mtransactions
C) information;mdata
D) data;mbenefit

smAnswer:m A

5) informationmreducesmuncertainty,mimprovesmdecisionmmakers'mabilitymtomma
kempredictions,mormconfirmsmexpectations.
A) Timely


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,B) Reliable
C) Relevant
D) Complete

Answer:m C
m




6) Informationmthatmismfreemfrommerrormormbiasmandmaccuratelymrepresentsmthemeventsmormactivi
tiesmofmthemorganizationmis
A) relevant.
B) reliablem/mFaithfulmRepresentation.
C) verifiable.
D) timely.

Answer:m B

7) Informationmthatmdoesmnotmomitmimportantmaspectsmofmthemunderlyingmeventsmormactivi
tiesmthatmitmmeasuresmis
A) complete.
B) accessible.
C) relevant.
D) timely.

Answer:m A

8) Informationmis
whenmtwomknowledgeablempeoplemindependentlymproducemthemsameminformation.
A) verifiable
B) relevant
C) reliable
D) complete

Answer:m A
m




9) Datammustmbemconvertedmintominformationmtombemconsideredmusefulmandmmeaningfulmfor
mdecisionmmaking.mTheremaremsixmcharacteristicsmthatmmakeminformationmbothmusefulmandm

meaningful.mIfminformationmismfreemfrommerrormormbiasmandmaccuratelymrepresentsmthemevent
smormactivitiesmofmthemorganization,mitmismrepresentativemofmthemcharacteristicmof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.




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, Answer:m D

10) Inventoryminformationmismprovidedminmrealmtimembymamfirm'smaccountingminformationmsyst
em.mThemaccuracymofmthisminformationmismquestionable,mhowever,msincemthemproductionmma
nagermoftenmreportsmstockmoutsmofmcomponentsmthatmthemsystemmindicatesmareminmstock.mW
hichmofmthemfollowingmcharacteristicsmofmusefulminformationmismabsentminmthemsituationmdesc
ribedmabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer:m B
m




11) CherylmMetrejeanmhasmbeenmthemcontrollermofmDowntownmTiresmform25myears.mOwnershi
pmofmthemfirmmrecentlymchangedmhandsmandmthemnewmownersmaremconductingmanmauditmofmthe
mfinancialmrecords.mThemauditmhasmbeenmunablemtomreproducemfinancialmreportsmthatmwerempre

paredmbymMs.mMetrejean.mWhilemtheremismnomevidencemofmwrongdoing,mthemauditorsmaremcon
cernedmthatmthemdiscrepanciesmmightmcontributemtompoormdecisions.mWhichmofmthemfollowing
mcharacteristicsmofmusefulminformationmismabsentminmthemsituationmdescribedmabove?

A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible

Answer:m F
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12) Inm2003,mSinghmManufacturingmimplementedmamWeb-
basedminformationmsystemmthatmallowsmallmemployeesmtomaccessmmission-
criticalminformation.mThemintentionmwasmtomincreasemproductionmefficiency.mUnfortunately,mitm
hadmthemoppositemeffect,masmdeliveriesmfellmbehindmschedulemandmcostsmincreased.mShamanmG
upta,mthemdirectormofminformationmtechnologymservices,maskedmAshleemWellsmtomcomeminmandm
talkmwithmhimmaboutmthemsystem.mAshleemismamlong-
timememployeemofmSingh,mandmhermopinionmismvaluedmbymhermpeersmandmbymhermsupervisor.
"SomAshlee,mhow'smitmgoingmdownmthereminmthemshop?"
"Notmsomgood,mShaman.mUsedmtombemwemgotmamweeklympickmlistmsomwemknewmhowmtomplanmprod
uction.mNow,mwemgotmthatmcomputermsystem.mMostmofmusmcan'tmfiguremoutmhowmtomusemitmtomdomo
urmjobs.mIsmtheremsomemwaymtomprintmoutmampickmlist?"
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