[TEST BANK] ACCOUNTING I
g g g
NFORMATION SYSTEMS, 15g g
TH EDITION BY ROMNEY, ST
g g g g
EINBART, SUMMERS, WOO
g g
D
,Chapterg1g AccountinggInformationgSystems:gAngOverview
1.1g Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gan
dgexplainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagan
dginformation?
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
gAnswer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmak
egpredictions,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactiviti
esgofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactiviti
esgthatgitgmeasuresgis
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) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgd
ecisiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmea
ningful.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgac
tivitiesgofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsyste
m.gThegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanag
ergoftengreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgof
gthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabo
ve?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgo
fgthegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinan
cialgrecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgb
ygMs.gMetrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgth
atgthegdiscrepanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteris
ticsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
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,gitgh
adgthegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupt
a,gthegdirectorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgw
ithghimgaboutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangprodu
ction.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogour
gjobs.gIsgtheregsomegwaygtogprintgoutgagpickglist?"
3
g g g
NFORMATION SYSTEMS, 15g g
TH EDITION BY ROMNEY, ST
g g g g
EINBART, SUMMERS, WOO
g g
D
,Chapterg1g AccountinggInformationgSystems:gAngOverview
1.1g Distinguishgdatagfromginformation,gdiscussgthegcharacteristicsgofgusefulginformation,gan
dgexplainghowgtogdeterminegthegvaluegofginformation.
1) Whichgofgthegfollowinggstatementsgbelowgshowsgthegcontrastgbetweengdatagan
dginformation?
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
gAnswer:g A
5) informationgreducesguncertainty,gimprovesgdecisiongmakers'gabilitygtogmak
egpredictions,gorgconfirmsgexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:g C
g
6) Informationgthatgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgactiviti
esgofgthegorganizationgis
A) relevant.
B) reliableg/gFaithfulgRepresentation.
C) verifiable.
D) timely.
Answer:g B
7) Informationgthatgdoesgnotgomitgimportantgaspectsgofgthegunderlyinggeventsgorgactiviti
esgthatgitgmeasuresgis
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) Datagmustgbegconvertedgintoginformationgtogbegconsideredgusefulgandgmeaningfulgforgd
ecisiongmaking.gTheregaregsixgcharacteristicsgthatgmakeginformationgbothgusefulgandgmea
ningful.gIfginformationgisgfreegfromgerrorgorgbiasgandgaccuratelygrepresentsgthegeventsgorgac
tivitiesgofgthegorganization,gitgisgrepresentativegofgthegcharacteristicgof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:g D
10) Inventoryginformationgisgprovidedgingrealgtimegbygagfirm'sgaccountingginformationgsyste
m.gThegaccuracygofgthisginformationgisgquestionable,ghowever,gsincegthegproductiongmanag
ergoftengreportsgstockgoutsgofgcomponentsgthatgthegsystemgindicatesgaregingstock.gWhichgof
gthegfollowinggcharacteristicsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabo
ve?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:g B
g
11) CherylgMetrejeanghasgbeengthegcontrollergofgDowntowngTiresgforg25gyears.gOwnershipgo
fgthegfirmgrecentlygchangedghandsgandgthegnewgownersgaregconductinggangauditgofgthegfinan
cialgrecords.gThegauditghasgbeengunablegtogreproducegfinancialgreportsgthatgweregpreparedgb
ygMs.gMetrejean.gWhilegtheregisgnogevidencegofgwrongdoing,gthegauditorsgaregconcernedgth
atgthegdiscrepanciesgmightgcontributegtogpoorgdecisions.gWhichgofgthegfollowinggcharacteris
ticsgofgusefulginformationgisgabsentgingthegsituationgdescribedgabove?
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,gitgh
adgthegoppositegeffect,gasgdeliveriesgfellgbehindgschedulegandgcostsgincreased.gShamangGupt
a,gthegdirectorgofginformationgtechnologygservices,gaskedgAshleegWellsgtogcomegingandgtalkgw
ithghimgaboutgthegsystem.gAshleegisgaglong-
timegemployeegofgSingh,gandghergopiniongisgvaluedgbyghergpeersgandgbyghergsupervisor.
"SogAshlee,ghow'sgitggoinggdowngtheregingthegshop?"
"Notgsoggood,gShaman.gUsedgtogbegweggotgagweeklygpickglistgsogwegknewghowgtogplangprodu
ction.gNow,gweggotgthatgcomputergsystem.gMostgofgusgcan'tgfiguregoutghowgtogusegitgtogdogour
gjobs.gIsgtheregsomegwaygtogprintgoutgagpickglist?"
3
