1
, Accounting Information Systems 1st Edition Savage Test Bank n7 n7 n7 n7 n7 n7 n7
Instant Access n7 n
Accounting Information Systems, 1e (Savage
n7 n7 n7 n7
) Chapter 1 Accounting as Information
n7 n7 n7 n7
7 All Chapters
n7
1) Accounting communicates to stakeholders n7 n7 n7
A) minimally required public financial data.
n7 n7 n7 n7
B) the financial outcomes of operating, investing, and financing activities.
n7 n7 n7 n7 n7 n7 n7 n7
C) the sales strategy for the operating, marketing, and sales activities.
n7 n7 n7 n7 n7 n7 n7 n7 n7
D) black and white details about the economics of operating activitie
n7 n7 n7 n7 n7 n7 n7 n7 n7
s. Answer: B
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Communication
n 7
Bloom's: Comprehensio n 7
n AICPA: AC: Reportin
n7 n 7 n7
g
2) Accounting communicates the financial outcomes of a business's activities for
n7 n7 n7 n7 n7 n7 n7 n7 n7
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct
n7 n7 n7 n7 n7 n7
. Answer: D
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Communication
n 7
Bloom's: Comprehensio n 7
n AICPA: AC: Reportin
n7 n 7 n7
g
3) In what way do management teams use accounting data?
n7 n7 n7 n7 n7 n7 n7 n7
A) Management teams use accounting data to make business decisions.
n7 n7 n7 n7 n7 n7 n7 n7
B) Management teams use accounting data to make and execute plans.
n7 n7 n7 n7 n7 n7 n7 n7 n7
C) Management teams use economic and accounting data together to make decisions.
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
D) All of these answer choices are correct
n7 n7 n7 n7 n7 n7
. Answer: D
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Risk Assessment, Analysis, and Management
n7 n7 n7 n7 n7 n7 n7
2
,4) Which statement is TRUE? n7 n7 n7
A) Accounting consists of rigid black and white rules. n7 n7 n7 n7 n7 n7 n7
B) Accountants crunch numbers, not make decisions. n7 n7 n7 n7 n7
C) Accounting helps support a prosperous society. n7 n7 n7 n7 n7
D) Accountants focus on debits and credits, not business activitie n7 n7 n7 n7 n7 n7 n7 n7
s. Answer: C
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehensio n 7
n AICPA: N/A
n7 n 7
5) Which of the following is NOT a component of an information system?
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
A) Hardware
B) Software
C) Input
D) Network
Answer: C
n7 n7
Diff: 1
n7 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Knowledge n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
6) Input to an information system consists of
n7 n7 n7 n7 n7 n7
A) raw and unorganized data.
n7 n7 n7
B) hardware and software. n7 n7
C) reported information. n7
D) processed data. n7
Answer: A
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Knowledge n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
7) Which of the following is a definition of output from an information system?
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
A) Output is raw and unorganized data.
n7 n7 n7 n7 n7
B) Output is information produced by processing data.
n7 n7 n7 n7 n7 n7
C) Output is database facts and figures.
n7 n7 n7 n7 n7
D) Output is information collected from users
n7 n7 n7 n7 n7
. Answer: B
n7 n 7
3
, Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
8) Which statement concerning data is TRUE?
n7 n7 n7 n7 n7
A) Data is useless to a business until transformed into information.
n7 n7 n7 n7 n7 n7 n7 n7 n7
B) Data is the output from an information system.
n7 n7 n7 n7 n7 n7 n7
C) Data is organized into understandable formats.
n7 n7 n7 n7 n7
D) Data is processed before being input into the information syste
n7 n7 n7 n7 n7 n7 n7 n7 n7
m. Answer: A
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
9) Which of the following activities would NOT result in a transaction in an accounti
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
ng information system?
n7 n7
A) Sell goods to a customer on account
n7 n7 n7 n7 n7 n7
B) Purchase supplies on credit n7 n7 n7
C) Prepay for six months of insurance
n7 n7 n7 n7 n7
D) Receive a customer order n7 n7 n7
Answer: D
n7 n 7
Diff: 2 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Application n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
4
, Accounting Information Systems 1st Edition Savage Test Bank n7 n7 n7 n7 n7 n7 n7
Instant Access n7 n
Accounting Information Systems, 1e (Savage
n7 n7 n7 n7
) Chapter 1 Accounting as Information
n7 n7 n7 n7
7 All Chapters
n7
1) Accounting communicates to stakeholders n7 n7 n7
A) minimally required public financial data.
n7 n7 n7 n7
B) the financial outcomes of operating, investing, and financing activities.
n7 n7 n7 n7 n7 n7 n7 n7
C) the sales strategy for the operating, marketing, and sales activities.
n7 n7 n7 n7 n7 n7 n7 n7 n7
D) black and white details about the economics of operating activitie
n7 n7 n7 n7 n7 n7 n7 n7 n7
s. Answer: B
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Communication
n 7
Bloom's: Comprehensio n 7
n AICPA: AC: Reportin
n7 n 7 n7
g
2) Accounting communicates the financial outcomes of a business's activities for
n7 n7 n7 n7 n7 n7 n7 n7 n7
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct
n7 n7 n7 n7 n7 n7
. Answer: D
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Communication
n 7
Bloom's: Comprehensio n 7
n AICPA: AC: Reportin
n7 n 7 n7
g
3) In what way do management teams use accounting data?
n7 n7 n7 n7 n7 n7 n7 n7
A) Management teams use accounting data to make business decisions.
n7 n7 n7 n7 n7 n7 n7 n7
B) Management teams use accounting data to make and execute plans.
n7 n7 n7 n7 n7 n7 n7 n7 n7
C) Management teams use economic and accounting data together to make decisions.
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
D) All of these answer choices are correct
n7 n7 n7 n7 n7 n7
. Answer: D
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Risk Assessment, Analysis, and Management
n7 n7 n7 n7 n7 n7 n7
2
,4) Which statement is TRUE? n7 n7 n7
A) Accounting consists of rigid black and white rules. n7 n7 n7 n7 n7 n7 n7
B) Accountants crunch numbers, not make decisions. n7 n7 n7 n7 n7
C) Accounting helps support a prosperous society. n7 n7 n7 n7 n7
D) Accountants focus on debits and credits, not business activitie n7 n7 n7 n7 n7 n7 n7 n7
s. Answer: C
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehensio n 7
n AICPA: N/A
n7 n 7
5) Which of the following is NOT a component of an information system?
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
A) Hardware
B) Software
C) Input
D) Network
Answer: C
n7 n7
Diff: 1
n7 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Knowledge n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
6) Input to an information system consists of
n7 n7 n7 n7 n7 n7
A) raw and unorganized data.
n7 n7 n7
B) hardware and software. n7 n7
C) reported information. n7
D) processed data. n7
Answer: A
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Knowledge n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
7) Which of the following is a definition of output from an information system?
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
A) Output is raw and unorganized data.
n7 n7 n7 n7 n7
B) Output is information produced by processing data.
n7 n7 n7 n7 n7 n7
C) Output is database facts and figures.
n7 n7 n7 n7 n7
D) Output is information collected from users
n7 n7 n7 n7 n7
. Answer: B
n7 n 7
3
, Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
8) Which statement concerning data is TRUE?
n7 n7 n7 n7 n7
A) Data is useless to a business until transformed into information.
n7 n7 n7 n7 n7 n7 n7 n7 n7
B) Data is the output from an information system.
n7 n7 n7 n7 n7 n7 n7
C) Data is organized into understandable formats.
n7 n7 n7 n7 n7
D) Data is processed before being input into the information syste
n7 n7 n7 n7 n7 n7 n7 n7 n7
m. Answer: A
n7 n 7
Diff: 1 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Comprehension n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
9) Which of the following activities would NOT result in a transaction in an accounti
n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
ng information system?
n7 n7
A) Sell goods to a customer on account
n7 n7 n7 n7 n7 n7
B) Purchase supplies on credit n7 n7 n7
C) Prepay for six months of insurance
n7 n7 n7 n7 n7
D) Receive a customer order n7 n7 n7
Answer: D
n7 n 7
Diff: 2 n7
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
n7 n 7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7 n7
mation.
Section Reference: Why is Accounting Information Important? AA
n7 n 7 n7 n7 n7 n7 n7
CSB: Analytic
n 7
Bloom's: Application n 7 n 7
AICPA: AC: Systems and Process Management
n 7 n 7 n7 n7 n7 n7
4
