Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney
x x x x x x x x x x x
1
, All Chapters
x x
Accounting Information Systems, 16e (Romney) x x x x
Chapter 1 Conceptual Foundations of Accounting Information Systems
x x x x x x
1 Distinguish data from information, discuss the characteristics of useful information, and explain
x x x x x x x x x x x x x
how to determine the value of information.
x x x x x x
1) Which of the following statements below shows the contrast between data and information?
x x x x x x x x x x x x
A) Data is the primary output of an accounting information system.
x x x x x x x x x
B) Information is the primary output of an accounting information system.
x x x x x x x x x
C) Data is more useful in decision making than information.
x x x x x x x x
D) Data and information are the same.
x x x x x x
Answer: B x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the sy
x x x x x x x x x x x x x x x
stem as a whole, it creates
x x x x x
A) system inconsistence. x
B) system conflict. x
C) goal inconsistence. x
D) goal conflict. x
Answer: D x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is cal
x x x x x x x x x x x x x x x
led
A) system match. x
B) system congruence. x
C) goal congruence. x
D) goal match. x
xAnswer: C x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
2
,4) Information is best described as x x x x
A) raw facts about transactions.
x x x
B) data that has been organized and processed so that it is meaningful to the user.
x x x x x x x x x x x x x x
C) facts that are useful when processed in a timely manner.
x x x x x x x x x
D) the same thing as data.
x x x x
Answer: B x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
5) The value of information can best be determined by
x x x x x x x x
A) its usefulness to decision makers.
x x x x
B) its relevance to decision makers.
x x x x
C) the benefits associated with obtaining the information minus the cost of producing it.
x x x x x x x x x x x x
D) the extent to which it optimizes the value chain.
x x x x x x x x x
Answer: C x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: M
x x x x x
oderate
AACSB: Analytical Thinking x
6) An accounting information system (AIS) processes
x x x x x x to provide users with
x x x x .
A) data; information x
B) data; transactions x
C) information; data x
D) data; benefits x
Answer: A
x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
7) information reduces uncertainty, improves decision makers' ability to make p x x x x x x x x x
redictions, or confirms expectations.
x x x
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer: C
x x
Concept: Information needs and business processes Obje
x x x x x x
ctive: Learning Objective 1
x x x
Difficulty: Easy x x
AACSB: Analytical Thinking x
3
, 8) Information that is free from error or bias and faithfully represents the events or activities of the
x x x x x x x x x x x x x x x x
organization is
x x
A) relevant.
B) accurate.
C) verifiable.
D) timely. x
Answer: B x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
9) Information that does not omit important aspects of the underlying events or activities that it m
x x x x x x x x x x x x x x x
easures isx
A) complete.
B) available.
C) relevant.
D) timely. x
Answer: A x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
10) Information is x x
when two knowledgeable people independently produce the same information.
x x x x x x x x
A) verifiable
B) relevant
C) accurate
D) complete
Answer: A
x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
4
x x x x x x x x x x x
1
, All Chapters
x x
Accounting Information Systems, 16e (Romney) x x x x
Chapter 1 Conceptual Foundations of Accounting Information Systems
x x x x x x
1 Distinguish data from information, discuss the characteristics of useful information, and explain
x x x x x x x x x x x x x
how to determine the value of information.
x x x x x x
1) Which of the following statements below shows the contrast between data and information?
x x x x x x x x x x x x
A) Data is the primary output of an accounting information system.
x x x x x x x x x
B) Information is the primary output of an accounting information system.
x x x x x x x x x
C) Data is more useful in decision making than information.
x x x x x x x x
D) Data and information are the same.
x x x x x x
Answer: B x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the sy
x x x x x x x x x x x x x x x
stem as a whole, it creates
x x x x x
A) system inconsistence. x
B) system conflict. x
C) goal inconsistence. x
D) goal conflict. x
Answer: D x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is cal
x x x x x x x x x x x x x x x
led
A) system match. x
B) system congruence. x
C) goal congruence. x
D) goal match. x
xAnswer: C x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
2
,4) Information is best described as x x x x
A) raw facts about transactions.
x x x
B) data that has been organized and processed so that it is meaningful to the user.
x x x x x x x x x x x x x x
C) facts that are useful when processed in a timely manner.
x x x x x x x x x
D) the same thing as data.
x x x x
Answer: B x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
5) The value of information can best be determined by
x x x x x x x x
A) its usefulness to decision makers.
x x x x
B) its relevance to decision makers.
x x x x
C) the benefits associated with obtaining the information minus the cost of producing it.
x x x x x x x x x x x x
D) the extent to which it optimizes the value chain.
x x x x x x x x x
Answer: C x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: M
x x x x x
oderate
AACSB: Analytical Thinking x
6) An accounting information system (AIS) processes
x x x x x x to provide users with
x x x x .
A) data; information x
B) data; transactions x
C) information; data x
D) data; benefits x
Answer: A
x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
7) information reduces uncertainty, improves decision makers' ability to make p x x x x x x x x x
redictions, or confirms expectations.
x x x
A) Timely
B) Accurate
C) Relevant
D) Complete
Answer: C
x x
Concept: Information needs and business processes Obje
x x x x x x
ctive: Learning Objective 1
x x x
Difficulty: Easy x x
AACSB: Analytical Thinking x
3
, 8) Information that is free from error or bias and faithfully represents the events or activities of the
x x x x x x x x x x x x x x x x
organization is
x x
A) relevant.
B) accurate.
C) verifiable.
D) timely. x
Answer: B x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
9) Information that does not omit important aspects of the underlying events or activities that it m
x x x x x x x x x x x x x x x
easures isx
A) complete.
B) available.
C) relevant.
D) timely. x
Answer: A x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
10) Information is x x
when two knowledgeable people independently produce the same information.
x x x x x x x x
A) verifiable
B) relevant
C) accurate
D) complete
Answer: A
x x
Concept: The concept of information Obje
x x x x x
ctive: Learning Objective 1 Difficulty: Ea
x x x x x
sy
AACSB: Analytical Thinking x
4
