Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage /All chapters 1-19 questions and answers fully Verified /A+ Guide

Test Bank Page 1

,Chapter 01: Accounting as Information
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1) Accounting communicates to stakeholders lk lk lk




A) minimally required public financial data. lk lk lk lk




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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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom'
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s: Comprehension AICPA: AC: Reporting
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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
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom'
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s: Comprehension AICPA: AC: Reporting
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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.
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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 Page 2

,Diff: 1 lk




Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's
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: Comprehension
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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.
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B) Accountants crunch numbers, not make decisions. lk lk lk lk lk




C) Accounting helps support a prosperous society. lk lk lk lk lk




D) Accountants focus on debits and credits, not business activities. Answer: C
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k Diff: 1lk




Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's
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: Comprehension AICPA: N/A
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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 lk lk lk lk




Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's
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: Knowledge
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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 Page 3

, B) hardware and software. lk lk




C) reported information. lk




D) processed data. lk




Answer: A l k




Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's
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: Knowledge
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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
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.
Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's
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: Comprehension
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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
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of infor
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mation.


Test Bank Page 4