Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage

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InstantAccess
AccountingInformationSystems,1e(Savage)
Chapter 1 Accounting as Information
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1) Accounting communicates to stakeholders gg gg gg


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


B) the financial outcomes of operating, investing, and financing
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activities.
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C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activities.
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Answer: B
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Diff: 1 gg


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Communication
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Bloom's:
Comprehension AICPA: gg


AC: Reportinggg




2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) Alloftheseanswer choices arecorrect. gg gg


Answer: D
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Diff: 1 gg


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Communication
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Bloom's:
Comprehension AICPA: gg


AC: Reportinggg




3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions.
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B) Management teams use accounting data to make and execute plans.
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C) Management teams use economic and accounting data together to make decisions.
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D) Alloftheseanswer choices arecorrect. gg gg


Answer: D
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Diff: 1 gg


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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1

,Bloom's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
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2

,4) Which statement is TRUE? gg gg gg


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


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


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


D) Accountants focus on debits and credits, not business activities.
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Answer: C
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Diff: 1 gg


Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's:
Comprehension AICPA: gg


N/A

5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network
Answer:
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C Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Knowledge
AICPA: AC: Systems and Process Management gg gg gg gg




6) Input to an information system consists of
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A) raw and unorganized data.
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B) hardware and software. gg gg


C) reported information. gg


D) processeddata.
Answer: A
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Knowledge
AICPA: AC: Systems and Process Management gg gg gg gg




7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data.
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B) Output is information produced by processing data.
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C) Output is database facts and figures.
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D) Output is informationcollectedfromusers.
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3

, Answer: B




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