[TEST BANK] ACCOUNTING
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapter= 1 Accounting= Information= Systems:= An= Overview
1.1 Distinguish= data= from= information,= discuss= the= characteristics= of= useful= informatio
n,=and= explain= how= to= determine= the= value= of= information.
1) Which= of= the= following= statements= below= shows= the= contrast= between= d
at=a= and= information?
A) Data= is= the= output= of= an= AIS.
B) Information= is= the= primary= output= of= an= AIS.
C) Data= is= more= useful= in= decision= making= than= information.
D) Data= and= information= are= the= same.
Answer: B
2) Information= is= best= described= as
A) raw= facts= about= transactions.
B) data= that= has= been= organized= and= processed= so= that= it= is= meaningful= to= the= user.
C) facts= that= are= useful= when= processed= in= a= timely= manner.
D) the= same= thing= as= data.
Answer: B
3) The= value= of= information= can= best= be= determined= by
A) its= usefulness= to= decision= makers.
B) its= relevance= to= decision= makers.
C) the= benefits= associated= with= obtaining= the= information= minus= the= cost= of= producing= it.
D) the= extent= to= which= it= optimizes= the= value= chain.
Answer: C
4) An= accounting= information= system= (AIS)= processes= to= provide= users= with
.
A) data;= information
B) data;= transactions
C) information;= data
D) data;=benefit
=s= Answer: A
5) information= reduces= uncertainty,= improves= decision= makers'= ability= t
o=make= predictions,= or= confirms= expectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
=Answer:
C
6) Information= that= is= free= from= error= or= bias= and= accurately= represents= the= events= or
= a=ctivities= of= the= organization= is
A) relevant.
B) reliable= /= Faithful= Representation.
C) verifiable.
D) timely.
Answer: B
7) Information= that= does= not= omit= important= aspects= of= the= underlying= events= or=
ac=tivities= that= it= measures= is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information= is
when= two= knowledgeable= people= independently= produce= the= same= information.
A) verifiable
B) relevant
C) reliable
D) complete
=Answer:
A
9) Data= must= be= converted= into= information= to= be= considered= useful= and= meaningful
= for= decision= making.= There= are= six= characteristics= that= make= information= both=
usef=ul= and= meaningful.= If= information= is= free= from= error= or= bias= and= accurately= re
present=s= the= events= or= activities= of= the= organization,= it= is= representative= of= the=
characterist=ic= of
A) relevancy.
B) timeliness.
2
, C) understandability.
D) reliability.
3
INFORMATION SYSTEMS, 15TH
EDITION BY ROMNEY,
STEINBART, SUMMERS, WOOD
, Chapter= 1 Accounting= Information= Systems:= An= Overview
1.1 Distinguish= data= from= information,= discuss= the= characteristics= of= useful= informatio
n,=and= explain= how= to= determine= the= value= of= information.
1) Which= of= the= following= statements= below= shows= the= contrast= between= d
at=a= and= information?
A) Data= is= the= output= of= an= AIS.
B) Information= is= the= primary= output= of= an= AIS.
C) Data= is= more= useful= in= decision= making= than= information.
D) Data= and= information= are= the= same.
Answer: B
2) Information= is= best= described= as
A) raw= facts= about= transactions.
B) data= that= has= been= organized= and= processed= so= that= it= is= meaningful= to= the= user.
C) facts= that= are= useful= when= processed= in= a= timely= manner.
D) the= same= thing= as= data.
Answer: B
3) The= value= of= information= can= best= be= determined= by
A) its= usefulness= to= decision= makers.
B) its= relevance= to= decision= makers.
C) the= benefits= associated= with= obtaining= the= information= minus= the= cost= of= producing= it.
D) the= extent= to= which= it= optimizes= the= value= chain.
Answer: C
4) An= accounting= information= system= (AIS)= processes= to= provide= users= with
.
A) data;= information
B) data;= transactions
C) information;= data
D) data;=benefit
=s= Answer: A
5) information= reduces= uncertainty,= improves= decision= makers'= ability= t
o=make= predictions,= or= confirms= expectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
=Answer:
C
6) Information= that= is= free= from= error= or= bias= and= accurately= represents= the= events= or
= a=ctivities= of= the= organization= is
A) relevant.
B) reliable= /= Faithful= Representation.
C) verifiable.
D) timely.
Answer: B
7) Information= that= does= not= omit= important= aspects= of= the= underlying= events= or=
ac=tivities= that= it= measures= is
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A
8) Information= is
when= two= knowledgeable= people= independently= produce= the= same= information.
A) verifiable
B) relevant
C) reliable
D) complete
=Answer:
A
9) Data= must= be= converted= into= information= to= be= considered= useful= and= meaningful
= for= decision= making.= There= are= six= characteristics= that= make= information= both=
usef=ul= and= meaningful.= If= information= is= free= from= error= or= bias= and= accurately= re
present=s= the= events= or= activities= of= the= organization,= it= is= representative= of= the=
characterist=ic= of
A) relevancy.
B) timeliness.
2
, C) understandability.
D) reliability.
3
