Accounting Information Systems, 14th Edition – Marshall Romney – Complete Test Bank Chapters 1–22

Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney
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1

, All Chapters
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Accounting Information Systems, 16e (Romney) x x x x


Chapter 1 Conceptual Foundations of Accounting Information Systems
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1 Distinguish data from information, discuss the characteristics of useful information, and explain
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how to determine the value of information.
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1) Which of the following statements below shows the contrast between data and information?
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A) Data is the primary output of an accounting information system.
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B) Information is the primary output of an accounting information system.
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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 x


Concept: The concept of information Obje
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the sy
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stem as a whole, it creates
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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
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is cal
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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
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




2

,4) Information is best described as x x x x


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 x x


Concept: The concept of information Obje
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




5) The value of information can best be determined by
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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.
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D) the extent to which it optimizes the value chain.
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Answer: C x


Concept: The concept of information Obje
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ctive: Learning Objective 1 Difficulty: M
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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
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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.
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A) Timely
B) Accurate
C) Relevant
D) Complete
Answer: C
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Concept: Information needs and business processes Obje
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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
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organization is
x x


A) relevant.
B) accurate.
C) verifiable.
D) timely. x


Answer: B x


Concept: The concept of information Obje
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




9) Information that does not omit important aspects of the underlying events or activities that it m
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easures isx


A) complete.
B) available.
C) relevant.
D) timely. x


Answer: A x


Concept: The concept of information Obje
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ctive: Learning Objective 1 Difficulty: Ea
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sy
AACSB: Analytical Thinking x




10) Information is x x


when two knowledgeable people independently produce the same information.
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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




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