TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
TESTBANKFORACCOUNTINGINFORMATIONSYSTEM 1ST
h h h h h h
EDITION BY ARLINE SAVAGE A+
h h h h h
Chapter 01: Accounting as Information h h h h
1) Accounting communicates to stakeholders h h h
A) minimallyrequired public financial data. h h h h
B) thefinancial outcomes of operating, investing, and financing activities.
h h h h h h h h
C) the sales strategyfor the operating, marketing, and sales activities.
h h h h h h h h h
D) black andwhitedetails abouttheeconomics ofoperatingactivities.Answer: B Diff:
h h h h h h h h h h h h
h1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:Whyis Accounting Information Important? AACSB:Communication Bloom's:
h h h h h h h h h
hComprehension AICPA: AC: Reporting h h h
2) Accountingcommunicates the financial outcomes of a business's activities for
h h h h h h h h h
A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoices arecorrect.Answer:D
h h h h h h h h
hDiff: 1
h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Communication Bloom's:
h h h h h h h h h
hComprehension AICPA: AC: Reporting h h h
3) In what waydo management teams use accounting data?
h h h h h h h h
A) Management teams use accounting data to make business decisions. h h h h h h h h
B) Management teams use accounting data to make and execute plans. h h h h h h h h h
C) Management teams use economic and accounting data together to make decisions.
h h h h h h h h h h
A+ Page 1
h
,TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
D) Alloftheseanswerchoices arecorrect.Answer:D
h h h h h h h h
hDiff: 1
h
LearningObjective: 1.1 Explain how accountingaffects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
h h h h h h
4) Which statement is TRUE? h h h
A) Accountingconsists of rigid black and white rules. h h h h h h h
B) Accountants crunch numbers, not make decisions. h h h h h
C) Accounting helps support a prosperous society. h h h h h
D) Accountantsfocusondebitsandcredits,notbusinessactivities.Answer:C Diff: h h h h h h h h h h h
h1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
hComprehension AICPA: N/A h h
5) Which of the following is NOT a component of an information system?
h h h h h h h h h h h
A) Hardware
B) Software
C) Input
D) NetworkAnswer: C Diff: 1 h h h h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Knowledge
AICPA: AC: Systems and Process Management
h h h h h
A+ Page 2
h
,TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
6) Input to an information system consists of
h h h h h h
A) rawand unorganized data.
h h h
B) hardwareand software. h h
C) reportedinformation. h
D) processed data. h
Answer: A h
Diff: 1h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Knowledge
AICPA: AC: Systems and Process Management
h h h h h
7) Which of the following is a definition of output from an information system?
h h h h h h h h h h h h
A) Output is raw and unorganized data. h h h h h
B) Output is information produced byprocessing data.
h h h h h h
C) Output is database facts and figures. h h h h h
D) Output is information collected from users. Answer: B
h h h h h h h
Diff: 1h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Systems and Process Management
h h h h h
8) Which statement concerning data is TRUE?h h h h h
A) Data is useless to a business until transformed into information.
h h h h h h h h h
B) Data is the output from an information system.
h h h h h h h
C) Datais organized into understandable formats.
h h h h h
D) Data is processed before being input into the information system. Answer: A
h h h h h h h h h h h
A+ Page 3
h
, TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
Diff: 1 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Systems and Process Management
h h h h h
9) Which ofthe followingactivities would NOTresult in a transaction in an accounting
h h h h h h h h h h h h h
hinformation system? h
A) Sell goods to a customer on account
h h h h h h
B) Purchase supplies on credit h h h
C) Prepayfor six months of insurance h h h h h
D) ReceiveacustomerorderAnswer:D h h h h h
hDiff: 2 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Application
AICPA: AC: Systems and Process Management
h h h h h
10) Whichofthefollowingactivitiesresults inatransactionan accountinginformation
h h h h h h h h h h h
hsystem?
A) Sell goods to a customer
h h h h
B) Submit an order to a vendor h h h h h
C) Create estimates for a customer
h h h h
D) ReceiveacustomerorderAnswer:A h h h h h
hDiff: 2 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference: Whyis Accounting Information Important? AACSB: Analytic
h h h h h h h h
A+ Page 4
h
h h h h h h
Edition by Arline A. Savage
h h h h h
TESTBANKFORACCOUNTINGINFORMATIONSYSTEM 1ST
h h h h h h
EDITION BY ARLINE SAVAGE A+
h h h h h
Chapter 01: Accounting as Information h h h h
1) Accounting communicates to stakeholders h h h
A) minimallyrequired public financial data. h h h h
B) thefinancial outcomes of operating, investing, and financing activities.
h h h h h h h h
C) the sales strategyfor the operating, marketing, and sales activities.
h h h h h h h h h
D) black andwhitedetails abouttheeconomics ofoperatingactivities.Answer: B Diff:
h h h h h h h h h h h h
h1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:Whyis Accounting Information Important? AACSB:Communication Bloom's:
h h h h h h h h h
hComprehension AICPA: AC: Reporting h h h
2) Accountingcommunicates the financial outcomes of a business's activities for
h h h h h h h h h
A) operating.
B) investing.
C) financing.
D) Alloftheseanswerchoices arecorrect.Answer:D
h h h h h h h h
hDiff: 1
h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Communication Bloom's:
h h h h h h h h h
hComprehension AICPA: AC: Reporting h h h
3) In what waydo management teams use accounting data?
h h h h h h h h
A) Management teams use accounting data to make business decisions. h h h h h h h h
B) Management teams use accounting data to make and execute plans. h h h h h h h h h
C) Management teams use economic and accounting data together to make decisions.
h h h h h h h h h h
A+ Page 1
h
,TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
D) Alloftheseanswerchoices arecorrect.Answer:D
h h h h h h h h
hDiff: 1
h
LearningObjective: 1.1 Explain how accountingaffects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
h h h h h h
4) Which statement is TRUE? h h h
A) Accountingconsists of rigid black and white rules. h h h h h h h
B) Accountants crunch numbers, not make decisions. h h h h h
C) Accounting helps support a prosperous society. h h h h h
D) Accountantsfocusondebitsandcredits,notbusinessactivities.Answer:C Diff: h h h h h h h h h h h
h1
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
hComprehension AICPA: N/A h h
5) Which of the following is NOT a component of an information system?
h h h h h h h h h h h
A) Hardware
B) Software
C) Input
D) NetworkAnswer: C Diff: 1 h h h h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Knowledge
AICPA: AC: Systems and Process Management
h h h h h
A+ Page 2
h
,TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
6) Input to an information system consists of
h h h h h h
A) rawand unorganized data.
h h h
B) hardwareand software. h h
C) reportedinformation. h
D) processed data. h
Answer: A h
Diff: 1h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Knowledge
AICPA: AC: Systems and Process Management
h h h h h
7) Which of the following is a definition of output from an information system?
h h h h h h h h h h h h
A) Output is raw and unorganized data. h h h h h
B) Output is information produced byprocessing data.
h h h h h h
C) Output is database facts and figures. h h h h h
D) Output is information collected from users. Answer: B
h h h h h h h
Diff: 1h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Systems and Process Management
h h h h h
8) Which statement concerning data is TRUE?h h h h h
A) Data is useless to a business until transformed into information.
h h h h h h h h h
B) Data is the output from an information system.
h h h h h h h
C) Datais organized into understandable formats.
h h h h h
D) Data is processed before being input into the information system. Answer: A
h h h h h h h h h h h
A+ Page 3
h
, TestBankforAccountingInformationSystems,1st
h h h h h h
Edition by Arline A. Savage
h h h h h
Diff: 1 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Comprehension
AICPA: AC: Systems and Process Management
h h h h h
9) Which ofthe followingactivities would NOTresult in a transaction in an accounting
h h h h h h h h h h h h h
hinformation system? h
A) Sell goods to a customer on account
h h h h h h
B) Purchase supplies on credit h h h
C) Prepayfor six months of insurance h h h h h
D) ReceiveacustomerorderAnswer:D h h h h h
hDiff: 2 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference:WhyisAccounting Information Important? AACSB:Analytic Bloom's:
h h h h h h h h h
h Application
AICPA: AC: Systems and Process Management
h h h h h
10) Whichofthefollowingactivitiesresults inatransactionan accountinginformation
h h h h h h h h h h h
hsystem?
A) Sell goods to a customer
h h h h
B) Submit an order to a vendor h h h h h
C) Create estimates for a customer
h h h h
D) ReceiveacustomerorderAnswer:A h h h h h
hDiff: 2 h
LearningObjective: 1.1 Explain how accounting affects both the demand for and supplyof information.
h h h h h h h h h h h h h h
SectionReference: Whyis Accounting Information Important? AACSB: Analytic
h h h h h h h h
A+ Page 4
h
