Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart, Summers, Wood all chapters.

[TEST BANK] ACCOUNTING
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD

, Chapter 1 ww w w Accounting Information Systems: An Overview ww ww ww ww




1.1 Distinguish data from information, discuss the characteristics of useful information,
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and explain how to determine the value of information.
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1) Which of the following statements below shows the contrast between dat
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a and information?
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A) Data is the output of an AIS.
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B) Information is the primary output of an AIS.
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C) Data is more useful in decision making than information.
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D) Data and information are the same.
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Answer: B w w




2) Information is best described as ww ww ww ww



A) raw facts about transactions.
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B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as data.
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Answer: B w w




3) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value chain.
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Answer: C w w




4) An accounting information system (AIS) processes
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.
A) data; information ww



B) data; transactionsww


C) information; data ww



D) data; benefit ww




s Answer: A
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5) information reduces uncertainty, improves decision makers' ability to ww ww ww ww ww ww ww ww



make predictions, or confirms expectations.
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A) Timely


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,B) Reliable
C) Relevant
D) Complete

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C

6) Information that is free from error or bias and accurately represents the events or a
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ctivities of the organization is
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A) relevant.
B) reliable / Faithful Representation.
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C) verifiable.
D) timely.

Answer: B w w




7) Information that does not omit important aspects of the underlying events or ac
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tivities that it measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.

Answer: A w w




8) Information is ww ww



when two knowledgeable people independently produce the same information.
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A) verifiable
B) relevant
C) reliable
D) complete

ww Answer: w w




A

9) Data must be converted into information to be considered useful and meaningful
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wwfor decision making. There are six characteristics that make information both usef
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ul and meaningful. If information is free from error or bias and accurately represent
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s the events or activities of the organization, it is representative of the characterist
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ic ofww



A) relevancy.
B) timeliness.
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, C) understandability.
D) reliability.




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