ACTG 313 Test With
Complete Solution
1.1 Information is best described as
a)raw facts about transactions.
b)A set of related, coordinated, and structured data.
c)facts that are collected, recorded, stored, and processed by an information
system.
d)data that have been organized and processed to provide meaning and
improve decision making. - ANSWER d)data that have been organized and
processed to provide meaning and improve decision making.
1.2 The value of information can best be determined by
a)the time it takes to help decision makers make their decisions.
b)the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
d)the usefulness provided to decision makers. - ANSWER c) the benefit
provided by information less the cost of producing it.
1.3 ________ information reduces uncertainty, improves decision making, or
confirms or corrects prior expectations.
a)Reliable
,b)Complete
c)Verifiable
d)Relevant - ANSWER d)Relevant
1.4 Joey Smith has been the controller of Nadia Cake for the past 5 years. The
owners of Nadia have recently decided to expand their operation and are in
the process of obtaining a loan from a local bank. In order to be qualified for
the loan, the bank asks Nadia to conduct an audit of the financial records.
The auditors have been unable to obtain Nadia's financial statements that
were prepared by Joey. While there is no evidence of wrongdoing, the
auditors are not able to complete the audit. Which of the following
characteristics of useful information is absent in the situation described
above?
a)Accessible
b)Verifiable
c)Complete
d)Reliable - ANSWER Accessible
1.9 All of the following are ways an AIS can add value to an organization
except:
a)Increasing product costs
b)Sharing knowledge
c)Improving efficiency
d)Improving internal controls - ANSWER a) increasing product costs
,1.10 Which of the following is NOT a component of an AIS?
a)software
b)company culture
c)IT infrastructure
d)people - ANSWER b)company culture
2-1.1 The text discusses three different steps when processing input. Which
of the following is (are) one of those steps? (Check all that apply.)
a)Make sure the input data is processed and stored correctly.
b)Make sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete. - ANSWER b)Make
sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete.
2-1.2 With respect to data input, data must be collected about three facets of
each business activity. Which of the following is (are) one of those facets?
(Check all that apply.)
a)Each activity of interest
b)The resource(s) affected by each activity
c)The decisions that will be made about each activity
d)The people who participate in each activity
, e)The controls needed to protect activity data - ANSWER a,b,d
2-1.3 Which of the following statements about data storage is (are) true?
(Check all that apply.)
a)A chart of accounts is a list of the numbers assigned to each general ledger
account.
b)A general journal is used to record a large number of repetitive
transactions.
c)A subsidiary ledger contains detailed data for any general ledger account
with many individual subaccounts.
d)A specialized journal is used to record infrequent or non-routine
transactions.
e)A general ledger contains detailed level data for every asset, liability,
equity, revenue, and expense account. - ANSWER a,c
2-1.4 With respect to computer-based storage concepts, which of the
following statements is (are) true? (Check all that apply.)
a)An attribute is something about which information is stored.
b)Data values are characteristics of interest that are stored.
c)A set of interrelated, centrally coordinated files is referred to as a database.
d)A file is a group of related records. - ANSWER c)A set of interrelated,
centrally coordinated files is referred to as a database.
d)A file is a group of related records.
2-1.5 Once business activity data have been entered into the system, they
Complete Solution
1.1 Information is best described as
a)raw facts about transactions.
b)A set of related, coordinated, and structured data.
c)facts that are collected, recorded, stored, and processed by an information
system.
d)data that have been organized and processed to provide meaning and
improve decision making. - ANSWER d)data that have been organized and
processed to provide meaning and improve decision making.
1.2 The value of information can best be determined by
a)the time it takes to help decision makers make their decisions.
b)the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
d)the usefulness provided to decision makers. - ANSWER c) the benefit
provided by information less the cost of producing it.
1.3 ________ information reduces uncertainty, improves decision making, or
confirms or corrects prior expectations.
a)Reliable
,b)Complete
c)Verifiable
d)Relevant - ANSWER d)Relevant
1.4 Joey Smith has been the controller of Nadia Cake for the past 5 years. The
owners of Nadia have recently decided to expand their operation and are in
the process of obtaining a loan from a local bank. In order to be qualified for
the loan, the bank asks Nadia to conduct an audit of the financial records.
The auditors have been unable to obtain Nadia's financial statements that
were prepared by Joey. While there is no evidence of wrongdoing, the
auditors are not able to complete the audit. Which of the following
characteristics of useful information is absent in the situation described
above?
a)Accessible
b)Verifiable
c)Complete
d)Reliable - ANSWER Accessible
1.9 All of the following are ways an AIS can add value to an organization
except:
a)Increasing product costs
b)Sharing knowledge
c)Improving efficiency
d)Improving internal controls - ANSWER a) increasing product costs
,1.10 Which of the following is NOT a component of an AIS?
a)software
b)company culture
c)IT infrastructure
d)people - ANSWER b)company culture
2-1.1 The text discusses three different steps when processing input. Which
of the following is (are) one of those steps? (Check all that apply.)
a)Make sure the input data is processed and stored correctly.
b)Make sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete. - ANSWER b)Make
sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete.
2-1.2 With respect to data input, data must be collected about three facets of
each business activity. Which of the following is (are) one of those facets?
(Check all that apply.)
a)Each activity of interest
b)The resource(s) affected by each activity
c)The decisions that will be made about each activity
d)The people who participate in each activity
, e)The controls needed to protect activity data - ANSWER a,b,d
2-1.3 Which of the following statements about data storage is (are) true?
(Check all that apply.)
a)A chart of accounts is a list of the numbers assigned to each general ledger
account.
b)A general journal is used to record a large number of repetitive
transactions.
c)A subsidiary ledger contains detailed data for any general ledger account
with many individual subaccounts.
d)A specialized journal is used to record infrequent or non-routine
transactions.
e)A general ledger contains detailed level data for every asset, liability,
equity, revenue, and expense account. - ANSWER a,c
2-1.4 With respect to computer-based storage concepts, which of the
following statements is (are) true? (Check all that apply.)
a)An attribute is something about which information is stored.
b)Data values are characteristics of interest that are stored.
c)A set of interrelated, centrally coordinated files is referred to as a database.
d)A file is a group of related records. - ANSWER c)A set of interrelated,
centrally coordinated files is referred to as a database.
d)A file is a group of related records.
2-1.5 Once business activity data have been entered into the system, they
