AlljChaptersjIncludedj⬛
j j ⬛
j j ⬛
AlljAnswersjIncludedj⬛
j⬛
j⬛
j
TESTj BANKj FOR
AccountingjInformationjSystems,jGlobaljEditionj15thjEdition
Chapterj1j AccountingjInformationjSystems:jAnjOverview
1.1 Distinguishjdatajfromjinformation,jdiscussjthejcharacteristicsjofjusefuljinformation,jandje
xplainjhowjtojdeterminejthejvaluejofjinformation.
1) Whichjofjthejfollowingjstatementsjbelowjshowsjthejcontrastjbetweenjdatajandjin
formation?
A) DatajisjthejoutputjofjanjAIS.
B) InformationjisjthejprimaryjoutputjofjanjAIS.
C) Datajisjmorejusefuljinjdecisionjmakingjthanjinformation.
D) Datajandjinformationjarejthejsame.
Answer:j B
2) Informationjisjbestjdescribedjas
A) rawjfactsjaboutjtransactions.
B) datajthatjhasjbeenjorganizedjandjprocessedjsojthatjitjisjmeaningfuljtojthejuser.
C) factsjthatjarejusefuljwhenjprocessedjinjajtimelyjmanner.
D) thejsamejthingjasjdata.
Answer:j B
3) Thejvaluejofjinformationjcanjbestjbejdeterminedjby
A) itsjusefulnessjtojdecisionjmakers.
B) itsjrelevancejtojdecisionjmakers.
C) thejbenefitsjassociatedjwithjobtainingjthejinformationjminusjthejcostjofjproducingjit.
D) thejextentjtojwhichjitjoptimizesjthejvaluejchain.
Answer:j C
4) Anjaccountingjinformationjsystemj(AIS)jprocessesj tojprovidejusersjwith
.
A) data;jinformation
B) data;jtransactions
C) information;jdata
D) data;jbenefitsj
Answer:j A
5) informationjreducesjuncertainty,jimprovesjdecisionjmakers'jabilityjtojmakejp
redictions,jorjconfirmsjexpectations.
A) Timely
,B) Reliable
C) Relevant
D) Complete
Answer:j C
j
6) Informationjthatjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofj
thejorganizationjis
A) relevant.
B) reliablej/jFaithfuljRepresentation.
C) verifiable.
D) timely.
Answer:j B
7) Informationjthatjdoesjnotjomitjimportantjaspectsjofjthejunderlyingjeventsjorjactivitiesjth
atjitjmeasuresjis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:j A
8) Informationjisj
whenjtwojknowledgeablejpeoplejindependentlyjproducejthejsamejinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:j A
j
9) Datajmustjbejconvertedjintojinformationjtojbejconsideredjusefuljandjmeaningfuljforjdecis
ionjmaking.jTherejarejsixjcharacteristicsjthatjmakejinformationjbothjusefuljandjmeaningful.jI
fjinformationjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjthej
organization,jitjisjrepresentativejofjthejcharacteristicjof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
AlljChaptersjj
⬛⬛j⬛
j
AlljAnswersj⬛
j⬛
j⬛
j
,Answer:j D
10) Inventoryjinformationjisjprovidedjinjrealjtimejbyjajfirm'sjaccountingjinformationjsystem.jT
hejaccuracyjofjthisjinformationjisjquestionable,jhowever,jsincejthejproductionjmanagerjoften
jreportsjstockjoutsjofjcomponentsjthatjthejsystemjindicatesjarejinjstock.jWhichjofjthejfollowin
gjcharacteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j B
j
11) CheryljMetrejeanjhasjbeenjthejcontrollerjofjDowntownjTiresjforj25jyears.jOwnershipjofjth
ejfirmjrecentlyjchangedjhandsjandjthejnewjownersjarejconductingjanjauditjofjthejfinancialjreco
rds.jThejauditjhasjbeenjunablejtojreproducejfinancialjreportsjthatjwerejpreparedjbyjMs.jMetrej
ean.jWhilejtherejisjnojevidencejofjwrongdoing,jthejauditorsjarejconcernedjthatjthejdiscrepanc
iesjmightjcontributejtojpoorjdecisions.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinforma
tionjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j F
j
12) Inj2003,jSinghjManufacturingjimplementedjajWeb-
basedjinformationjsystemjthatjallowsjalljemployeesjtojaccessjmission-
criticaljinformation.jThejintentionjwasjtojincreasejproductionjefficiency.jUnfortunately,jitjhadjt
hejoppositejeffect,jasjdeliveriesjfelljbehindjschedulejandjcostsjincreased.jShamanjGupta,jthejdir
ectorjofjinformationjtechnologyjservices,jaskedjAshleejWellsjtojcomejinjandjtalkjwithjhimjabou
tjthejsystem.jAshleejisjajlong-
timejemployeejofjSingh,jandjherjopinionjisjvaluedjbyjherjpeersjandjbyjherjsupervisor.
"SojAshlee,jhow'sjitjgoingjdownjtherejinjthejshop?"
"Notjsojgood,jShaman.jUsedjtojbejwejgotjajweeklyjpickjlistjsojwejknewjhowjtojplanjproduction.jN
ow,jwejgotjthatjcomputerjsystem.jMostjofjusjcan'tjfigurejoutjhowjtojusejitjtojdojourjjobs.jIsjtherejs
omejwayjtojprintjoutjajpickjlist?"
, Shamanjthoughtjforjajwhilejbeforejresponding.j"Well,jAshlee,jtojtelljyoujthejtruth,jI'mjnotjsojsu
rejhowjtojdojitjmyself,jbutjtherejmustjbejajway.jWe'lljbringjinjthejconsultantsjthatjhelpedjusjbui
ldjthejsystem.jMaybejtheyjcanjhelp."
Whichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedj
above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j E
j
13) WisconsinjDells,jWisconsin,jisjajpopularjtouristjdestination.jDuringjthejwinterjmonths,jth
ejpopulationjdwindlesjtojajmeagerjfew,jbutjwhenjsummerjcomes,jthejsizejofjthejtownjsurges.j
HunterjJacksonjisjthejtownjsanitationjengineer.jWhenjthejsizejofjthejtownjsurges,jsojdojhisjres
ponsibilities.jAmongjthemjisjmanagementjofjthejsewagejprocessingjvolume.
Injanjinterviewjwithjthejlocaljpaper,jHunterjcomplainedjthatjajreportjonjtouristjpopulationjthatj
hejusesjtojadjustjprocessingjvolumejrefersjtojdatajthatjwasjcollectedjfourjdaysjagojandjitjtakesjhi
mjajweekjtojmakejadjustments.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisja
bsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j D
j
14) AjfranticjBarneyjRubblejlostjajlargejsalejbecausejhejcouldjnotjaccessjthejsystemjtojverifyjth
ejinventoryjwasjinjstockjandjreadyjtojbejshipped.jWhichjofjthejfollowingjcharacteristicsjofjusef
uljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
j j ⬛
j j ⬛
AlljAnswersjIncludedj⬛
j⬛
j⬛
j
TESTj BANKj FOR
AccountingjInformationjSystems,jGlobaljEditionj15thjEdition
Chapterj1j AccountingjInformationjSystems:jAnjOverview
1.1 Distinguishjdatajfromjinformation,jdiscussjthejcharacteristicsjofjusefuljinformation,jandje
xplainjhowjtojdeterminejthejvaluejofjinformation.
1) Whichjofjthejfollowingjstatementsjbelowjshowsjthejcontrastjbetweenjdatajandjin
formation?
A) DatajisjthejoutputjofjanjAIS.
B) InformationjisjthejprimaryjoutputjofjanjAIS.
C) Datajisjmorejusefuljinjdecisionjmakingjthanjinformation.
D) Datajandjinformationjarejthejsame.
Answer:j B
2) Informationjisjbestjdescribedjas
A) rawjfactsjaboutjtransactions.
B) datajthatjhasjbeenjorganizedjandjprocessedjsojthatjitjisjmeaningfuljtojthejuser.
C) factsjthatjarejusefuljwhenjprocessedjinjajtimelyjmanner.
D) thejsamejthingjasjdata.
Answer:j B
3) Thejvaluejofjinformationjcanjbestjbejdeterminedjby
A) itsjusefulnessjtojdecisionjmakers.
B) itsjrelevancejtojdecisionjmakers.
C) thejbenefitsjassociatedjwithjobtainingjthejinformationjminusjthejcostjofjproducingjit.
D) thejextentjtojwhichjitjoptimizesjthejvaluejchain.
Answer:j C
4) Anjaccountingjinformationjsystemj(AIS)jprocessesj tojprovidejusersjwith
.
A) data;jinformation
B) data;jtransactions
C) information;jdata
D) data;jbenefitsj
Answer:j A
5) informationjreducesjuncertainty,jimprovesjdecisionjmakers'jabilityjtojmakejp
redictions,jorjconfirmsjexpectations.
A) Timely
,B) Reliable
C) Relevant
D) Complete
Answer:j C
j
6) Informationjthatjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofj
thejorganizationjis
A) relevant.
B) reliablej/jFaithfuljRepresentation.
C) verifiable.
D) timely.
Answer:j B
7) Informationjthatjdoesjnotjomitjimportantjaspectsjofjthejunderlyingjeventsjorjactivitiesjth
atjitjmeasuresjis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:j A
8) Informationjisj
whenjtwojknowledgeablejpeoplejindependentlyjproducejthejsamejinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:j A
j
9) Datajmustjbejconvertedjintojinformationjtojbejconsideredjusefuljandjmeaningfuljforjdecis
ionjmaking.jTherejarejsixjcharacteristicsjthatjmakejinformationjbothjusefuljandjmeaningful.jI
fjinformationjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjthej
organization,jitjisjrepresentativejofjthejcharacteristicjof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
AlljChaptersjj
⬛⬛j⬛
j
AlljAnswersj⬛
j⬛
j⬛
j
,Answer:j D
10) Inventoryjinformationjisjprovidedjinjrealjtimejbyjajfirm'sjaccountingjinformationjsystem.jT
hejaccuracyjofjthisjinformationjisjquestionable,jhowever,jsincejthejproductionjmanagerjoften
jreportsjstockjoutsjofjcomponentsjthatjthejsystemjindicatesjarejinjstock.jWhichjofjthejfollowin
gjcharacteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j B
j
11) CheryljMetrejeanjhasjbeenjthejcontrollerjofjDowntownjTiresjforj25jyears.jOwnershipjofjth
ejfirmjrecentlyjchangedjhandsjandjthejnewjownersjarejconductingjanjauditjofjthejfinancialjreco
rds.jThejauditjhasjbeenjunablejtojreproducejfinancialjreportsjthatjwerejpreparedjbyjMs.jMetrej
ean.jWhilejtherejisjnojevidencejofjwrongdoing,jthejauditorsjarejconcernedjthatjthejdiscrepanc
iesjmightjcontributejtojpoorjdecisions.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinforma
tionjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j F
j
12) Inj2003,jSinghjManufacturingjimplementedjajWeb-
basedjinformationjsystemjthatjallowsjalljemployeesjtojaccessjmission-
criticaljinformation.jThejintentionjwasjtojincreasejproductionjefficiency.jUnfortunately,jitjhadjt
hejoppositejeffect,jasjdeliveriesjfelljbehindjschedulejandjcostsjincreased.jShamanjGupta,jthejdir
ectorjofjinformationjtechnologyjservices,jaskedjAshleejWellsjtojcomejinjandjtalkjwithjhimjabou
tjthejsystem.jAshleejisjajlong-
timejemployeejofjSingh,jandjherjopinionjisjvaluedjbyjherjpeersjandjbyjherjsupervisor.
"SojAshlee,jhow'sjitjgoingjdownjtherejinjthejshop?"
"Notjsojgood,jShaman.jUsedjtojbejwejgotjajweeklyjpickjlistjsojwejknewjhowjtojplanjproduction.jN
ow,jwejgotjthatjcomputerjsystem.jMostjofjusjcan'tjfigurejoutjhowjtojusejitjtojdojourjjobs.jIsjtherejs
omejwayjtojprintjoutjajpickjlist?"
, Shamanjthoughtjforjajwhilejbeforejresponding.j"Well,jAshlee,jtojtelljyoujthejtruth,jI'mjnotjsojsu
rejhowjtojdojitjmyself,jbutjtherejmustjbejajway.jWe'lljbringjinjthejconsultantsjthatjhelpedjusjbui
ldjthejsystem.jMaybejtheyjcanjhelp."
Whichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedj
above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j E
j
13) WisconsinjDells,jWisconsin,jisjajpopularjtouristjdestination.jDuringjthejwinterjmonths,jth
ejpopulationjdwindlesjtojajmeagerjfew,jbutjwhenjsummerjcomes,jthejsizejofjthejtownjsurges.j
HunterjJacksonjisjthejtownjsanitationjengineer.jWhenjthejsizejofjthejtownjsurges,jsojdojhisjres
ponsibilities.jAmongjthemjisjmanagementjofjthejsewagejprocessingjvolume.
Injanjinterviewjwithjthejlocaljpaper,jHunterjcomplainedjthatjajreportjonjtouristjpopulationjthatj
hejusesjtojadjustjprocessingjvolumejrefersjtojdatajthatjwasjcollectedjfourjdaysjagojandjitjtakesjhi
mjajweekjtojmakejadjustments.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisja
bsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j D
j
14) AjfranticjBarneyjRubblejlostjajlargejsalejbecausejhejcouldjnotjaccessjthejsystemjtojverifyjth
ejinventoryjwasjinjstockjandjreadyjtojbejshipped.jWhichjofjthejfollowingjcharacteristicsjofjusef
uljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
