Test Bank - Accounting Information System, 1st Edition by Savage (All Chapters 1 to 19 Covered) - Pdf

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,) Chapter 1
l l Accounting as Information l l




1) Accounting communicates to stakeholders l l l


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


B) the financial outcomes of operating, investing, and financing activities.
l l l l l l l l


C) the sales strategy for the operating, marketing, and sales activities.
l l l l l l l l l


D) black and white details about the economics of operating activities. An
l l l l l l l l l l


swer: B l


Diff: 1 l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lCommunication
Bloom's: Comprehension l l


AICPA: AC: Reporting l l




2) Accounting communicates the financial outcomes of a business's activities for
l l l l l l l l l


A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct. A
l l l l l l l


nswer: D l


Diff: 1 l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lCommunication
Bloom's: Comprehension l l


AICPA: AC: Reporting l l




3) In what way do management teams use accounting data?
l l l l l l l l


A) Management teams use accounting data to make business decisions. l l l l l l l l


B) Management teams use accounting data to make and execute plans. l l l l l l l l l


C) Management teams use economic and accounting data together to make decisions.
l l l l l l l l l l


D) All of these answer choices are correct. A
l l l l l l l


nswer: D l


Diff: 1 l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lAnalytic
Bloom's: Comprehension l l


AICPA: AC: Risk Assessment, Analysis, and Management
l l l l l l l




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, 4) Which statement is TRUE? l l l


A) Accounting consists of rigid black and white rules. l l l l l l l


B) Accountants crunch numbers, not make decisions. l l l l l


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


D) Accountants focus on debits and credits, not business activities. An l l l l l l l l l


swer: C l


Diff: 1
l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lAnalytic
Bloom's: Comprehension l l


AICPA: N/A l




5) Which of the following is NOT a component of an information system?
l l l l l l l l l l l


A) Hardware
B) Software
C) Input
D) Network l


Answer: C l l


Diff: 1
l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lAnalytic
Bloom's: Knowledge l l


AICPA: AC: Systems and Process Management
l l l l l l




6) Input to an information system consists of
l l l l l l


A) raw and unorganized data.
l l l


B) hardware and software. l l


C) reported information. l


D) processeddata. l l


Answer: A l


Diff: 1
l


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.
l l l l l l l l l l l l l l


Section Reference: Why is Accounting Information Important? AACSB:
l l l l l l l


lAnalytic
Bloom's: Knowledge l l


AICPA: AC: Systems and Process Management
l l l l l l




7) Which of the following is a definition of output from an information system?
l l l l l l l l l l l l


A) Output is raw and unorganized data. l l l l l


B) Output is information produced by processing data.
l l l l l l


C) Output is database facts and figures. l l l l l


D) Output is information collected from users. A
l l l l l l


nswer: B l




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