Test Bank for Accounting Information Systems, 1st
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Edition by Arline A. Savage
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TEST BANK FOR ACCOUNTING INFORMATION SYSTEM 1ST
v v v v v v
v EDITION BY ARLINE SAVAGE A+ v v v v
Chapter 01: Accounting as Information v v v v
1) Accounting communicates to stakeholders v v v
A) minimally required public financial data.
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B) the financial outcomes of operating, investing, and financing activities.
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C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activities. Answer: B
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v Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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v information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
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v Bloom's: Comprehension AICPA: AC: Reporting
v v v v
2) Accounting communicates the financial outcomes of a business's activities for
v v v v v v v v v
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
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v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
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v Bloom's: Comprehension AICPA: AC: Reporting
v v v v
3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions.
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B) Management teams use accounting data to make and execute plans.
v v v v v v v v v
C) Management teams use economic and accounting data together to make decisions.
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A+ Page 1
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,Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
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D) All of these answer choices are correct. Answer: D
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v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Risk Assessment, Analysis, and Management
v v v v v v
4) Which statement is TRUE?
v v v
A) Accounting consists of rigid black and white rules.
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B) Accountants crunch numbers, not make decisions.
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C) Accounting helps support a prosperous society.
v v v v v
D) Accountants focus on debits and credits, not business activities. Answer: C
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v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension AICPA: N/A
v v v
5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1
v v v v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Knowledgev
AICPA: AC: Systems and Process Management
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A+ Page 2
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,Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
v v v v v
6) Input to an information system consists of
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A) raw and unorganized data.
v v v
B) hardware and software. v v
C) reported information. v
D) processed data. v
Answer: A v
Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Knowledge
v
AICPA: AC: Systems and Process Management
v v v v v
7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data.
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B) Output is information produced by processing data.
v v v v v v
C) Output is database facts and figures.
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D) Output is information collected from users. Answer: B
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Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Systems and Process Management
v v v v v
8) Which statement concerning data is TRUE?
v v v v v
A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
v v v v v v v
C) Data is organized into understandable formats.
v v v v v
D) Data is processed before being input into the information system. Answer: A
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A+ Page 3
v
, Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
v v v v v
Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Systems and Process Management
v v v v v
9) Which of the following activities would NOT result in a transaction in an accounting
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v information system? v
A) Sell goods to a customer on account
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B) Purchase supplies on credit v v v
C) Prepay for six months of insurance
v v v v v
D) Receive a customer order Answer: D
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v Diff: 2 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Applicationv
AICPA: AC: Systems and Process Management
v v v v v
10) Which of the following activities results in a transaction an accounting information
v v v v v v v v v v v
v system?
A) Sell goods to a customer
v v v v
B) Submit an order to a vendor v v v v v
C) Create estimates for a customer
v v v v
D) Receive a customer order Answer: A
v v v v v
v Diff: 2 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
A+ Page 4
v
v v v v v v
Edition by Arline A. Savage
v v v v v
TEST BANK FOR ACCOUNTING INFORMATION SYSTEM 1ST
v v v v v v
v EDITION BY ARLINE SAVAGE A+ v v v v
Chapter 01: Accounting as Information v v v v
1) Accounting communicates to stakeholders v v v
A) minimally required public financial data.
v v v v
B) the financial outcomes of operating, investing, and financing activities.
v v v v v v v v
C) the sales strategy for the operating, marketing, and sales activities.
v v v v v v v v v
D) black and white details about the economics of operating activities. Answer: B
v v v v v v v v v v v
v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
v v v v v v v v
v Bloom's: Comprehension AICPA: AC: Reporting
v v v v
2) Accounting communicates the financial outcomes of a business's activities for
v v v v v v v v v
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
v v v v v v v v
v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Communication
v v v v v v v v
v Bloom's: Comprehension AICPA: AC: Reporting
v v v v
3) In what way do management teams use accounting data?
v v v v v v v v
A) Management teams use accounting data to make business decisions.
v v v v v v v v
B) Management teams use accounting data to make and execute plans.
v v v v v v v v v
C) Management teams use economic and accounting data together to make decisions.
v v v v v v v v v v
A+ Page 1
v
,Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
v v v v v
D) All of these answer choices are correct. Answer: D
v v v v v v v v
v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Risk Assessment, Analysis, and Management
v v v v v v
4) Which statement is TRUE?
v v v
A) Accounting consists of rigid black and white rules.
v v v v v v v
B) Accountants crunch numbers, not make decisions.
v v v v v
C) Accounting helps support a prosperous society.
v v v v v
D) Accountants focus on debits and credits, not business activities. Answer: C
v v v v v v v v v v
v Diff: 1
v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension AICPA: N/A
v v v
5) Which of the following is NOT a component of an information system?
v v v v v v v v v v v
A) Hardware
B) Software
C) Input
D) Network Answer: C Diff: 1
v v v v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Knowledgev
AICPA: AC: Systems and Process Management
v v v v v
A+ Page 2
v
,Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
v v v v v
6) Input to an information system consists of
v v v v v v
A) raw and unorganized data.
v v v
B) hardware and software. v v
C) reported information. v
D) processed data. v
Answer: A v
Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Knowledge
v
AICPA: AC: Systems and Process Management
v v v v v
7) Which of the following is a definition of output from an information system?
v v v v v v v v v v v v
A) Output is raw and unorganized data.
v v v v v
B) Output is information produced by processing data.
v v v v v v
C) Output is database facts and figures.
v v v v v
D) Output is information collected from users. Answer: B
v v v v v v v
Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Systems and Process Management
v v v v v
8) Which statement concerning data is TRUE?
v v v v v
A) Data is useless to a business until transformed into information.
v v v v v v v v v
B) Data is the output from an information system.
v v v v v v v
C) Data is organized into understandable formats.
v v v v v
D) Data is processed before being input into the information system. Answer: A
v v v v v v v v v v v
A+ Page 3
v
, Test Bank for Accounting Information Systems, 1st
v v v v v v
Edition by Arline A. Savage
v v v v v
Diff: 1 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Comprehension
v
AICPA: AC: Systems and Process Management
v v v v v
9) Which of the following activities would NOT result in a transaction in an accounting
v v v v v v v v v v v v v
v information system? v
A) Sell goods to a customer on account
v v v v v v
B) Purchase supplies on credit v v v
C) Prepay for six months of insurance
v v v v v
D) Receive a customer order Answer: D
v v v v v
v Diff: 2 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
v Bloom's: Applicationv
AICPA: AC: Systems and Process Management
v v v v v
10) Which of the following activities results in a transaction an accounting information
v v v v v v v v v v v
v system?
A) Sell goods to a customer
v v v v
B) Submit an order to a vendor v v v v v
C) Create estimates for a customer
v v v v
D) Receive a customer order Answer: A
v v v v v
v Diff: 2 v
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
v v v v v v v v v v v v v
v information.
Section Reference: Why is Accounting Information Important? AACSB: Analytic
v v v v v v v v
A+ Page 4
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