ACCOUNTING INFORMATION SYSTEMS 16TH
EDITION BY MARSHALL B ROMNEY TEST
BANK UPDATED 2026 VERIFIED QUESTIONS,
ANSWERS AND RATIONALE
,Table of Contents
1. Accounting Information Systems: An Overview
2. Overview of Transaction Processing and Enterprise Resource Planning
Systems
3. Systems Documentation Techniques
4. Relational Databases
5. Introduction to Data Analytics in Accounting
6. Transforming Data
7. Data Analysis and Presentation
8. Fraud and Errors
9. Computer Fraud and Abuse Techniques
10.Control and Accounting Information Systems
11.Controls for Information Security
12.Confidentiality and Privacy Controls
13.Processing Integrity and Availability Controls
14.The Revenue Cycle: Sales to Cash Collections
15.The Expenditure Cycle: Purchasing to Cash Disbursements
16.The Production Cycle
17.The Human Resources Management and Payroll Cycle
18.General Ledger and Reporting System
19.Database Design Using the REA Data Model
20.Implementing an REA Model in a Relational Database
21.Special Topics in REA Modeling
22.Introduction to Systems Development and Systems Analysis
23.AIS Development Strategies
24.Systems Design, Implementation, and Operation
,CHAPTER 1: ACCOUNTING INFORMATION SYSTEMS: AN
OVERVIEW
Summary
This chapter introduces accounting information systems as integrated structures
of people, procedures, data, software, and technology used to collect, process,
and report financial information. It emphasizes the role of AIS in supporting
decision-making, internal control, risk management, and ethical financial
reporting, highlighting how effective systems enhance organizational
performance, compliance, and strategic planning.
1. Which statement best defines an accounting information system (AIS)?
A. A computerized accounting software package
B. A system that records only financial transactions
C. An integrated structure that collects, processes, and reports accounting
information
D. A database used exclusively by accountants
Correct Answer: C
Rationale: AIS includes people, procedures, data, and technology to support
accounting functions. It is broader than software or transaction recording alone.
2. Which component of an AIS is primarily responsible for carrying out
instructions and making judgments?
A. Data
B. Procedures
C. People
D. Information technology
Correct Answer: C
Rationale: People design, operate, and evaluate AIS. Technology and data
support processes but cannot replace human judgment.
3. A company implements an AIS to improve decision-making by
management. Which AIS objective is most directly supported?
A. Safeguarding assets
B. Providing useful information
C. Ensuring legal compliance
D. Reducing data redundancy
, Correct Answer: B
Rationale: One primary AIS objective is delivering relevant, reliable
information to support planning, control, and decision-making.
4. Which role is a primary user of AIS outputs for strategic planning?
A. Data entry clerk
B. Internal auditor
C. Senior management
D. IT support staff
Correct Answer: C
Rationale: Senior management relies on AIS information for long-term planning
and organizational strategy.
5. An AIS that fails to restrict unauthorized access most directly increases
the risk of:
A. Inefficient data processing
B. Loss of confidentiality
C. Poor user training
D. Inaccurate budgeting
Correct Answer: B
Rationale: Weak access controls expose sensitive data, compromising
confidentiality and increasing fraud risk.
6. Which element of AIS consists of methods for collecting, processing, and
storing data?
A. Procedures and instructions
B. People
C. Hardware
D. Outputs
Correct Answer: A
Rationale: Procedures define how data is handled within the system, ensuring
consistency and reliability.
7. A controller wants assurance that financial reports are accurate and
reliable. Which AIS objective addresses this need?
A. Operational efficiency
B. Compliance with laws
C. Reliability of information
D. Cost reduction
EDITION BY MARSHALL B ROMNEY TEST
BANK UPDATED 2026 VERIFIED QUESTIONS,
ANSWERS AND RATIONALE
,Table of Contents
1. Accounting Information Systems: An Overview
2. Overview of Transaction Processing and Enterprise Resource Planning
Systems
3. Systems Documentation Techniques
4. Relational Databases
5. Introduction to Data Analytics in Accounting
6. Transforming Data
7. Data Analysis and Presentation
8. Fraud and Errors
9. Computer Fraud and Abuse Techniques
10.Control and Accounting Information Systems
11.Controls for Information Security
12.Confidentiality and Privacy Controls
13.Processing Integrity and Availability Controls
14.The Revenue Cycle: Sales to Cash Collections
15.The Expenditure Cycle: Purchasing to Cash Disbursements
16.The Production Cycle
17.The Human Resources Management and Payroll Cycle
18.General Ledger and Reporting System
19.Database Design Using the REA Data Model
20.Implementing an REA Model in a Relational Database
21.Special Topics in REA Modeling
22.Introduction to Systems Development and Systems Analysis
23.AIS Development Strategies
24.Systems Design, Implementation, and Operation
,CHAPTER 1: ACCOUNTING INFORMATION SYSTEMS: AN
OVERVIEW
Summary
This chapter introduces accounting information systems as integrated structures
of people, procedures, data, software, and technology used to collect, process,
and report financial information. It emphasizes the role of AIS in supporting
decision-making, internal control, risk management, and ethical financial
reporting, highlighting how effective systems enhance organizational
performance, compliance, and strategic planning.
1. Which statement best defines an accounting information system (AIS)?
A. A computerized accounting software package
B. A system that records only financial transactions
C. An integrated structure that collects, processes, and reports accounting
information
D. A database used exclusively by accountants
Correct Answer: C
Rationale: AIS includes people, procedures, data, and technology to support
accounting functions. It is broader than software or transaction recording alone.
2. Which component of an AIS is primarily responsible for carrying out
instructions and making judgments?
A. Data
B. Procedures
C. People
D. Information technology
Correct Answer: C
Rationale: People design, operate, and evaluate AIS. Technology and data
support processes but cannot replace human judgment.
3. A company implements an AIS to improve decision-making by
management. Which AIS objective is most directly supported?
A. Safeguarding assets
B. Providing useful information
C. Ensuring legal compliance
D. Reducing data redundancy
, Correct Answer: B
Rationale: One primary AIS objective is delivering relevant, reliable
information to support planning, control, and decision-making.
4. Which role is a primary user of AIS outputs for strategic planning?
A. Data entry clerk
B. Internal auditor
C. Senior management
D. IT support staff
Correct Answer: C
Rationale: Senior management relies on AIS information for long-term planning
and organizational strategy.
5. An AIS that fails to restrict unauthorized access most directly increases
the risk of:
A. Inefficient data processing
B. Loss of confidentiality
C. Poor user training
D. Inaccurate budgeting
Correct Answer: B
Rationale: Weak access controls expose sensitive data, compromising
confidentiality and increasing fraud risk.
6. Which element of AIS consists of methods for collecting, processing, and
storing data?
A. Procedures and instructions
B. People
C. Hardware
D. Outputs
Correct Answer: A
Rationale: Procedures define how data is handled within the system, ensuring
consistency and reliability.
7. A controller wants assurance that financial reports are accurate and
reliable. Which AIS objective addresses this need?
A. Operational efficiency
B. Compliance with laws
C. Reliability of information
D. Cost reduction
