[TEST BANK] ACCOUNTING I
g g g
NFORMATION SYSTEMS, 15 g g
TH EDITION BY ROMNEY, STE
g g g g
INBART, SUMMERS, WOOD
g g
,Chapter 1 Accounting Information Systems: An Overview
g g g g g g
1.1g Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gandg
explainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagandgi
nformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocessesg togprovidegusersgwith
.
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefits
g Answer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmakeg
predictions,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesg
ofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactivitiesgt
hatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgisg
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:g A
g
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgdec
isiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmeaningf
ul.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesg
ofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsystem.g
Thegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanagergoft
engreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgofgthegfoll
owinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgofgt
hegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinancialgr
ecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgbygMs.g
Metrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgthatgthegdi
screpanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteristicsgofgusef
ulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g F
g
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitghadg
thegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupta,gtheg
directorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgwithghimga
boutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproductio
n.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjobs.gIsg
theregsomegwaygtogprintgoutgagpickglist?"
3
g g g
NFORMATION SYSTEMS, 15 g g
TH EDITION BY ROMNEY, STE
g g g g
INBART, SUMMERS, WOOD
g g
,Chapter 1 Accounting Information Systems: An Overview
g g g g g g
1.1g Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gandg
explainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagandgi
nformation?
A) DatagisgthegoutputgofgangAIS.
B) InformationgisgthegprimarygoutputgofgangAIS.
C) Datagisgmoregusefulgingdecisiongmakinggthanginformation.
D) Datagandginformationgaregthegsame.
Answer:g B
2) Informationgisgbestgdescribedgas
A) rawgfactsgaboutgtransactions.
B) datagthatghasgbeengorganizedgandgprocessedgsogthatgitgisgmeaningfulgtogtheguser.
C) factsgthatgaregusefulgwhengprocessedgingagtimelygmanner.
D) thegsamegthinggasgdata.
Answer:g B
3) Thegvaluegofginformationgcangbestgbegdeterminedgby
A) itsgusefulnessgtogdecisiongmakers.
B) itsgrelevancegtogdecisiongmakers.
C) thegbenefitsgassociatedgwithgobtaininggtheginformationgminusgthegcostgofgproducinggit.
D) thegextentgtogwhichgitgoptimizesgthegvaluegchain.
Answer:g C
4) Angaccountingginformationgsystemg(AIS)gprocessesg togprovidegusersgwith
.
A) data;ginformation
B) data;gtransactions
C) information;gdata
D) data;gbenefits
g Answer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmakeg
predictions,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesg
ofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactivitiesgt
hatgitgmeasuresgis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:g A
8) Informationgisg
whengtwogknowledgeablegpeoplegindependentlygproducegthegsameginformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:g A
g
9) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgdec
isiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmeaningf
ul.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactivitiesg
ofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsystem.g
Thegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanagergoft
engreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgofgthegfoll
owinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgofgt
hegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinancialgr
ecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgbygMs.g
Metrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgthatgthegdi
screpanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteristicsgofgusef
ulginformationgisgabsentgingthegsituationgdescribedgabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g F
g
12) Ing2003,gSinghgManufacturinggimplementedgagWeb-
basedginformationgsystemgthatgallowsgallgemployeesgtogaccessgmission-
criticalginformation.gThegintentiongwasgtogincreasegproductiongefficiency.gUnfortunately,gitghadg
thegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupta,gtheg
directorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgwithghimga
boutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangproductio
n.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogourgjobs.gIsg
theregsomegwaygtogprintgoutgagpickglist?"
3
