Created By: Test Banks
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Test Bank for Accounting Information Systems, 1st Edi
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tion by Arline A. Savage Latest 2024 ip ip ip ip ip ip
Chapter 01: Accounting as Information
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1) Accounting communicates to stakeholders ip ip ip
A) minimally required public financial data. ip ip ip ip
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 D
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iff: 1
ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
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ion.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: AC: Reporting ip ip ip
2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
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Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: AC: Reporting ip ip ip
3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions. ip ip ip ip ip ip ip ip
B) Management teams use accounting data to make and execute plans. ip ip ip ip ip ip ip ip ip
C) Management teams use economic and accounting data together to make decisions.
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D) All of these answer choices are correct. Answer: D
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Test Bank ip Page 1 ip
,Created By: Test Banks
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Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
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4) Which statement is TRUE?
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A) Accounting consists of rigid black and white rules. ip ip ip ip ip ip ip
B) Accountants crunch numbers, not make decisions. ip ip ip ip ip
C) Accounting helps support a prosperous society. ip ip ip ip ip
D) Accountants focus on debits and credits, not business activities. Answer: C
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Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: N/A ip ip
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 ip ip ip ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
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ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Knowledge
AICPA: AC: Systems and Process Management
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6) Input to an information system consists of
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A) raw and unorganized data.
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Test Bank
ip Page 2 ip
,Created By: Test Banks
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B) hardware and software. ip ip
C) reported information. ip
D) processed data. ip
Answer: A i p
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Knowledge
AICPA: AC: Systems and Process Management
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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.
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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 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Systems and Process Management
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8) Which statement concerning data is TRUE?
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A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
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C) Data is organized into understandable formats.
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D) Data is processed before being input into the information system. Answer: A D
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iff: 1
ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
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ion.
Test Bank ip Page 3 ip
, Created By: Test Banks
ip ip ip
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Systems and Process Management
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9) Which of the following activities would NOT result in a transaction in an accounting in
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formation system? ip
A) Sell goods to a customer on account
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B) Purchase supplies on credit ip ip ip
C) Prepay for six months of insurance
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D) Receive a customer order Answer: D ip ip ip ip ip ip
Diff: 2 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Application
AICPA: AC: Systems and Process Management
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10) Which of the following activities results in a transaction an accounting information s
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ystem?
A) Sell goods to a customer
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B) Submit an order to a vendor ip ip ip ip ip
C) Create estimates for a customer
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D) Receive a customer order Answer: A ip ip ip ip ip ip
Diff: 2 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Application
AICPA: AC: Systems and Process Management
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11) A business model is
ip ip ip
Test Bank
ip Page 4 ip
ip ip ip
Test Bank for Accounting Information Systems, 1st Edi
ip ip ip ip ip ip ip
tion by Arline A. Savage Latest 2024 ip ip ip ip ip ip
Chapter 01: Accounting as Information
ip ip ip ip
1) Accounting communicates to stakeholders ip ip ip
A) minimally required public financial data. ip ip ip ip
B) the financial outcomes of operating, investing, and financing activities.
ip ip ip ip ip ip ip ip
C) the sales strategy for the operating, marketing, and sales activities.
ip ip ip ip ip ip ip ip ip
D) black and white details about the economics of operating activities. Answer: B D
ip ip ip ip ip ip ip ip ip ip ip ip
iff: 1
ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: AC: Reporting ip ip ip
2) Accounting communicates the financial outcomes of a business's activities for
ip ip ip ip ip ip ip ip ip
A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. Answer: D
ip ip ip ip ip ip ip ip ip
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: AC: Reporting ip ip ip
3) In what way do management teams use accounting data?
ip ip ip ip ip ip ip ip
A) Management teams use accounting data to make business decisions. ip ip ip ip ip ip ip ip
B) Management teams use accounting data to make and execute plans. ip ip ip ip ip ip ip ip ip
C) Management teams use economic and accounting data together to make decisions.
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D) All of these answer choices are correct. Answer: D
ip ip ip ip ip ip ip ip
Test Bank ip Page 1 ip
,Created By: Test Banks
ip ip ip
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
i p ip ip ip ip ip
4) Which statement is TRUE?
ip ip ip
A) Accounting consists of rigid black and white rules. ip ip ip ip ip ip ip
B) Accountants crunch numbers, not make decisions. ip ip ip ip ip
C) Accounting helps support a prosperous society. ip ip ip ip ip
D) Accountants focus on debits and credits, not business activities. Answer: C
ip ip ip ip ip ip ip ip ip ip ip
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip ip
Comprehension AICPA: N/A ip ip
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 ip ip ip ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Knowledge
AICPA: AC: Systems and Process Management
i p ip ip ip ip
6) Input to an information system consists of
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A) raw and unorganized data.
ip ip ip
Test Bank
ip Page 2 ip
,Created By: Test Banks
ip ip ip
B) hardware and software. ip ip
C) reported information. ip
D) processed data. ip
Answer: A i p
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Knowledge
AICPA: AC: Systems and Process Management
i p ip ip ip ip
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.
ip ip ip ip ip
B) Output is information produced by processing data.
ip ip ip ip ip ip
C) Output is database facts and figures.
ip ip ip ip ip
D) Output is information collected from users. Answer: B
ip ip ip ip ip ip ip
Diff: 1 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Systems and Process Management
i p ip ip ip ip
8) Which statement concerning data is TRUE?
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A) Data is useless to a business until transformed into information.
ip ip ip ip ip ip ip ip ip
B) Data is the output from an information system.
ip ip ip ip ip ip ip
C) Data is organized into understandable formats.
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D) Data is processed before being input into the information system. Answer: A D
ip ip ip ip ip ip ip ip ip ip ip ip
iff: 1
ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Test Bank ip Page 3 ip
, Created By: Test Banks
ip ip ip
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Comprehension
AICPA: AC: Systems and Process Management
i p ip ip ip ip
9) Which of the following activities would NOT result in a transaction in an accounting in
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formation system? ip
A) Sell goods to a customer on account
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B) Purchase supplies on credit ip ip ip
C) Prepay for six months of insurance
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D) Receive a customer order Answer: D ip ip ip ip ip ip
Diff: 2 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Application
AICPA: AC: Systems and Process Management
i p ip ip ip ip
10) Which of the following activities results in a transaction an accounting information s
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ystem?
A) Sell goods to a customer
ip ip ip ip
B) Submit an order to a vendor ip ip ip ip ip
C) Create estimates for a customer
ip ip ip ip
D) Receive a customer order Answer: A ip ip ip ip ip ip
Diff: 2 ip
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of informat
ip ip ip ip ip ip ip ip ip ip ip ip ip ip
ion.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's:
ip ip ip ip ip ip ip ip ip i
p Application
AICPA: AC: Systems and Process Management
i p ip ip ip ip
11) A business model is
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Test Bank
ip Page 4 ip
