[TEST BANK] ACCOUNTING I
j j j
NFORMATION SYSTEMS, 15 j j
THEDITIONBYROMNEY, STE
j j j j
INBART, SUMMERS, WOOD
j j
,Chapter 1 Accounting Information Systems: An Overview
j j j j j j
1.1j Distinguishjdatajfromjinformation,jdiscussjthejcharacteristicsjofjusefuljinformation,jandjexp
lainjhowjtojdeterminejthejvaluejofjinformation.
1) Whichjofjthejfollowingjstatementsjbelowjshowsjthejcontrastjbetweenjdatajandjinf
ormation?
A) DatajisjthejoutputjofjanjAIS.
B) InformationjisjthejprimaryjoutputjofjanjAIS.
C) Datajisjmorejusefuljinjdecisionjmakingjthanjinformation.
D) Datajandjinformationjarejthejsame.
Answer:j B
2) Informationjisjbestjdescribedjas
A) rawjfactsjaboutjtransactions.
B) datajthatjhasjbeenjorganizedjandjprocessedjsojthatjitjisjmeaningfuljtojthejuser.
C) factsjthatjarejusefuljwhenjprocessedjinjajtimelyjmanner.
D) thejsamejthingjasjdata.
Answer:j B
3) Thejvaluejofjinformationjcanjbestjbejdeterminedjby
A) itsjusefulnessjtojdecisionjmakers.
B) itsjrelevancejtojdecisionjmakers.
C) thejbenefitsjassociatedjwithjobtainingjthejinformationjminusjthejcostjofjproducingjit.
D) thejextentjtojwhichjitjoptimizesjthejvaluejchain.
Answer:j C
4) Anjaccountingjinformationjsystemj(AIS)jprocessesj tojprovidejusersjwith
.
A) data;jinformation
B) data;jtransactions
C) information;jdata
D) data;jbenefitsj
Answer:j A
5) informationjreducesjuncertainty,jimprovesjdecisionjmakers'jabilityjtojmakejpr
edictions,jorjconfirmsjexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:j C
j
6) Informationjthatjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjt
hejorganizationjis
A) relevant.
B) reliablej/jFaithfuljRepresentation.
C) verifiable.
D) timely.
Answer:j B
7) Informationjthatjdoesjnotjomitjimportantjaspectsjofjthejunderlyingjeventsjorjactivitiesjtha
tjitjmeasuresjis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:j A
8) Informationjisj
whenjtwojknowledgeablejpeoplejindependentlyjproducejthejsamejinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:j A
j
9) Datajmustjbejconvertedjintojinformationjtojbejconsideredjusefuljandjmeaningfuljforjdecisi
onjmaking.jTherejarejsixjcharacteristicsjthatjmakejinformationjbothjusefuljandjmeaningful.jIfji
nformationjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjthejorg
anization,jitjisjrepresentativejofjthejcharacteristicjof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:j D
10) Inventoryjinformationjisjprovidedjinjrealjtimejbyjajfirm'sjaccountingjinformationjsystem.jTh
ejaccuracyjofjthisjinformationjisjquestionable,jhowever,jsincejthejproductionjmanagerjoftenjre
portsjstockjoutsjofjcomponentsjthatjthejsystemjindicatesjarejinjstock.jWhichjofjthejfollowingjch
aracteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j B
j
11) CheryljMetrejeanjhasjbeenjthejcontrollerjofjDowntownjTiresjforj25jyears.jOwnershipjofjthejf
irmjrecentlyjchangedjhandsjandjthejnewjownersjarejconductingjanjauditjofjthejfinancialjrecords.j
ThejauditjhasjbeenjunablejtojreproducejfinancialjreportsjthatjwerejpreparedjbyjMs.jMetrejean.j
Whilejtherejisjnojevidencejofjwrongdoing,jthejauditorsjarejconcernedjthatjthejdiscrepanciesjmi
ghtjcontributejtojpoorjdecisions.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisja
bsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j F
j
12) Inj2003,jSinghjManufacturingjimplementedjajWeb-
basedjinformationjsystemjthatjallowsjalljemployeesjtojaccessjmission-
criticaljinformation.jThejintentionjwasjtojincreasejproductionjefficiency.jUnfortunately,jitjhadjth
ejoppositejeffect,jasjdeliveriesjfelljbehindjschedulejandjcostsjincreased.jShamanjGupta,jthejdirec
torjofjinformationjtechnologyjservices,jaskedjAshleejWellsjtojcomejinjandjtalkjwithjhimjaboutjthe
jsystem.jAshleejisjajlong-
timejemployeejofjSingh,jandjherjopinionjisjvaluedjbyjherjpeersjandjbyjherjsupervisor.
"SojAshlee,jhow'sjitjgoingjdownjtherejinjthejshop?"
"Notjsojgood,jShaman.jUsedjtojbejwejgotjajweeklyjpickjlistjsojwejknewjhowjtojplanjproduction.jN
ow,jwejgotjthatjcomputerjsystem.jMostjofjusjcan'tjfigurejoutjhowjtojusejitjtojdojourjjobs.jIsjtherejso
mejwayjtojprintjoutjajpickjlist?"
3
j j j
NFORMATION SYSTEMS, 15 j j
THEDITIONBYROMNEY, STE
j j j j
INBART, SUMMERS, WOOD
j j
,Chapter 1 Accounting Information Systems: An Overview
j j j j j j
1.1j Distinguishjdatajfromjinformation,jdiscussjthejcharacteristicsjofjusefuljinformation,jandjexp
lainjhowjtojdeterminejthejvaluejofjinformation.
1) Whichjofjthejfollowingjstatementsjbelowjshowsjthejcontrastjbetweenjdatajandjinf
ormation?
A) DatajisjthejoutputjofjanjAIS.
B) InformationjisjthejprimaryjoutputjofjanjAIS.
C) Datajisjmorejusefuljinjdecisionjmakingjthanjinformation.
D) Datajandjinformationjarejthejsame.
Answer:j B
2) Informationjisjbestjdescribedjas
A) rawjfactsjaboutjtransactions.
B) datajthatjhasjbeenjorganizedjandjprocessedjsojthatjitjisjmeaningfuljtojthejuser.
C) factsjthatjarejusefuljwhenjprocessedjinjajtimelyjmanner.
D) thejsamejthingjasjdata.
Answer:j B
3) Thejvaluejofjinformationjcanjbestjbejdeterminedjby
A) itsjusefulnessjtojdecisionjmakers.
B) itsjrelevancejtojdecisionjmakers.
C) thejbenefitsjassociatedjwithjobtainingjthejinformationjminusjthejcostjofjproducingjit.
D) thejextentjtojwhichjitjoptimizesjthejvaluejchain.
Answer:j C
4) Anjaccountingjinformationjsystemj(AIS)jprocessesj tojprovidejusersjwith
.
A) data;jinformation
B) data;jtransactions
C) information;jdata
D) data;jbenefitsj
Answer:j A
5) informationjreducesjuncertainty,jimprovesjdecisionjmakers'jabilityjtojmakejpr
edictions,jorjconfirmsjexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:j C
j
6) Informationjthatjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjt
hejorganizationjis
A) relevant.
B) reliablej/jFaithfuljRepresentation.
C) verifiable.
D) timely.
Answer:j B
7) Informationjthatjdoesjnotjomitjimportantjaspectsjofjthejunderlyingjeventsjorjactivitiesjtha
tjitjmeasuresjis
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:j A
8) Informationjisj
whenjtwojknowledgeablejpeoplejindependentlyjproducejthejsamejinformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:j A
j
9) Datajmustjbejconvertedjintojinformationjtojbejconsideredjusefuljandjmeaningfuljforjdecisi
onjmaking.jTherejarejsixjcharacteristicsjthatjmakejinformationjbothjusefuljandjmeaningful.jIfji
nformationjisjfreejfromjerrorjorjbiasjandjaccuratelyjrepresentsjthejeventsjorjactivitiesjofjthejorg
anization,jitjisjrepresentativejofjthejcharacteristicjof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:j D
10) Inventoryjinformationjisjprovidedjinjrealjtimejbyjajfirm'sjaccountingjinformationjsystem.jTh
ejaccuracyjofjthisjinformationjisjquestionable,jhowever,jsincejthejproductionjmanagerjoftenjre
portsjstockjoutsjofjcomponentsjthatjthejsystemjindicatesjarejinjstock.jWhichjofjthejfollowingjch
aracteristicsjofjusefuljinformationjisjabsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j B
j
11) CheryljMetrejeanjhasjbeenjthejcontrollerjofjDowntownjTiresjforj25jyears.jOwnershipjofjthejf
irmjrecentlyjchangedjhandsjandjthejnewjownersjarejconductingjanjauditjofjthejfinancialjrecords.j
ThejauditjhasjbeenjunablejtojreproducejfinancialjreportsjthatjwerejpreparedjbyjMs.jMetrejean.j
Whilejtherejisjnojevidencejofjwrongdoing,jthejauditorsjarejconcernedjthatjthejdiscrepanciesjmi
ghtjcontributejtojpoorjdecisions.jWhichjofjthejfollowingjcharacteristicsjofjusefuljinformationjisja
bsentjinjthejsituationjdescribedjabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:j F
j
12) Inj2003,jSinghjManufacturingjimplementedjajWeb-
basedjinformationjsystemjthatjallowsjalljemployeesjtojaccessjmission-
criticaljinformation.jThejintentionjwasjtojincreasejproductionjefficiency.jUnfortunately,jitjhadjth
ejoppositejeffect,jasjdeliveriesjfelljbehindjschedulejandjcostsjincreased.jShamanjGupta,jthejdirec
torjofjinformationjtechnologyjservices,jaskedjAshleejWellsjtojcomejinjandjtalkjwithjhimjaboutjthe
jsystem.jAshleejisjajlong-
timejemployeejofjSingh,jandjherjopinionjisjvaluedjbyjherjpeersjandjbyjherjsupervisor.
"SojAshlee,jhow'sjitjgoingjdownjtherejinjthejshop?"
"Notjsojgood,jShaman.jUsedjtojbejwejgotjajweeklyjpickjlistjsojwejknewjhowjtojplanjproduction.jN
ow,jwejgotjthatjcomputerjsystem.jMostjofjusjcan'tjfigurejoutjhowjtojusejitjtojdojourjjobs.jIsjtherejso
mejwayjtojprintjoutjajpickjlist?"
3
