[TEST BANK] ACCOUNTING INF
a a a
ORMATION SYSTEMS, 15TH EDI
a a a
TION BY ROMNEY, STEINBART, S
a a a a
UMMERS, WOOD a
, Chapter 1 Accounting Information Systems: An Overview
a a a a a a
1.1 Distinguishadataafromainformation,adiscussatheacharacteristicsaofausefulainformation,aanda
explainahowatoadetermineatheavalueaofainformation.
1) aWhichaofatheafollowingastatementsabelowashowsatheacontrastabetweenadataaanda
information?
A) DataaisatheaoutputaofaanaAIS.
B) InformationaisatheaprimaryaoutputaofaanaAIS.
C) Dataaisamoreausefulainadecisionamakingathanainformation.
D) Dataaandainformationaareatheasame.
Answer:a B
2) Informationaisabestadescribedaas
A) rawafactsaaboutatransactions.
B) dataathatahasabeenaorganizedaandaprocessedasoathataitaisameaningfulatoatheauser.
C) factsathataareausefulawhenaprocessedainaaatimelyamanner.
D) theasameathingaasadata.
Answer:a B
3) Theavalueaofainformationacanabestabeadeterminedaby
A) itsausefulnessatoadecisionamakers.
B) itsarelevanceatoadecisionamakers.
C) theabenefitsaassociatedawithaobtainingatheainformationaminusatheacostaofaproducingait.
D) theaextentatoawhichaitaoptimizesatheavalueachain.
Answer:a C
4) Anaaccountingainformationasystema(AIS)aprocessesa toaprovideausersawith
.
A) data;ainformation
B) data;atransactions
C) information;adata
D) data;abenefits
Answer:a A
a
5) informationareducesauncertainty,aimprovesadecisionamakers'aabilityatoamakea
predictions,aoraconfirmsaexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:a C
a
6) Informationathataisafreeafromaerroraorabiasaandaaccuratelyarepresentsatheaeventsaoraactivitiesa
ofatheaorganizationais
A) relevant.
B) reliablea/aFaithfulaRepresentation.
C) verifiable.
D) timely.
Answer:a B
7) Informationathatadoesanotaomitaimportantaaspectsaofatheaunderlyingaeventsaoraactivitiesa
thataitameasuresais
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:a A
8) Informationaisa
whenatwoaknowledgeableapeopleaindependentlyaproduceatheasameainformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:a A
a
9) Dataamustabeaconvertedaintoainformationatoabeaconsideredausefulaandameaningfulaforadec
isionamaking.aThereaareasixacharacteristicsathatamakeainformationabothausefulaandameaningf
ul.aIfainformationaisafreeafromaerroraorabiasaandaaccuratelyarepresentsatheaeventsaoraactivitiesa
ofatheaorganization,aitaisarepresentativeaofatheacharacteristicaof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:a D
10) Inventoryainformationaisaprovidedainarealatimeabyaaafirm'saaccountingainformationasystem.a
Theaaccuracyaofathisainformationaisaquestionable,ahowever,asinceatheaproductionamanageraoft
enareportsastockaoutsaofacomponentsathatatheasystemaindicatesaareainastock.aWhichaofatheafoll
owingacharacteristicsaofausefulainformationaisaabsentainatheasituationadescribedaabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:a B
a
11) CherylaMetrejeanahasabeenatheacontrolleraofaDowntownaTiresafora25ayears.aOwnershipaofat
heafirmarecentlyachangedahandsaandatheanewaownersaareaconductingaanaauditaofatheafinancialar
ecords.aTheaauditahasabeenaunableatoareproduceafinancialareportsathatawereapreparedabyaMs.a
Metrejean.aWhileathereaisanoaevidenceaofawrongdoing,atheaauditorsaareaconcernedathatatheadi
screpanciesamightacontributeatoapooradecisions.aWhichaofatheafollowingacharacteristicsaofausef
ulainformationaisaabsentainatheasituationadescribedaabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:a F
a
12) Ina2003,aSinghaManufacturingaimplementedaaaWeb-
basedainformationasystemathataallowsaallaemployeesatoaaccessamission-
criticalainformation.aTheaintentionawasatoaincreaseaproductionaefficiency.aUnfortunately,aitahada
theaoppositeaeffect,aasadeliveriesafellabehindascheduleaandacostsaincreased.aShamanaGupta,athea
directoraofainformationatechnologyaservices,aaskedaAshleeaWellsatoacomeainaandatalkawithahimaa
boutatheasystem.aAshleeaisaaalong-
timeaemployeeaofaSingh,aandaheraopinionaisavaluedabyaherapeersaandabyaherasupervisor.
"SoaAshlee,ahow'saitagoingadownathereainatheashop?"
"Notasoagood,aShaman.aUsedatoabeaweagotaaaweeklyapickalistasoaweaknewahowatoaplanaproductio
n.aNow,aweagotathatacomputerasystem.aMostaofausacan'tafigureaoutahowatoauseaitatoadoaourajobs.aI
sathereasomeawayatoaprintaoutaaapickalist?"
3
a a a
ORMATION SYSTEMS, 15TH EDI
a a a
TION BY ROMNEY, STEINBART, S
a a a a
UMMERS, WOOD a
, Chapter 1 Accounting Information Systems: An Overview
a a a a a a
1.1 Distinguishadataafromainformation,adiscussatheacharacteristicsaofausefulainformation,aanda
explainahowatoadetermineatheavalueaofainformation.
1) aWhichaofatheafollowingastatementsabelowashowsatheacontrastabetweenadataaanda
information?
A) DataaisatheaoutputaofaanaAIS.
B) InformationaisatheaprimaryaoutputaofaanaAIS.
C) Dataaisamoreausefulainadecisionamakingathanainformation.
D) Dataaandainformationaareatheasame.
Answer:a B
2) Informationaisabestadescribedaas
A) rawafactsaaboutatransactions.
B) dataathatahasabeenaorganizedaandaprocessedasoathataitaisameaningfulatoatheauser.
C) factsathataareausefulawhenaprocessedainaaatimelyamanner.
D) theasameathingaasadata.
Answer:a B
3) Theavalueaofainformationacanabestabeadeterminedaby
A) itsausefulnessatoadecisionamakers.
B) itsarelevanceatoadecisionamakers.
C) theabenefitsaassociatedawithaobtainingatheainformationaminusatheacostaofaproducingait.
D) theaextentatoawhichaitaoptimizesatheavalueachain.
Answer:a C
4) Anaaccountingainformationasystema(AIS)aprocessesa toaprovideausersawith
.
A) data;ainformation
B) data;atransactions
C) information;adata
D) data;abenefits
Answer:a A
a
5) informationareducesauncertainty,aimprovesadecisionamakers'aabilityatoamakea
predictions,aoraconfirmsaexpectations.
A) Timely
1
,B) Reliable
C) Relevant
D) Complete
Answer:a C
a
6) Informationathataisafreeafromaerroraorabiasaandaaccuratelyarepresentsatheaeventsaoraactivitiesa
ofatheaorganizationais
A) relevant.
B) reliablea/aFaithfulaRepresentation.
C) verifiable.
D) timely.
Answer:a B
7) Informationathatadoesanotaomitaimportantaaspectsaofatheaunderlyingaeventsaoraactivitiesa
thataitameasuresais
A) complete.
B) accessible.
C) relevant.
D) timely.
Answer:a A
8) Informationaisa
whenatwoaknowledgeableapeopleaindependentlyaproduceatheasameainformation.
A) verifiable
B) relevant
C) reliable
D) complete
Answer:a A
a
9) Dataamustabeaconvertedaintoainformationatoabeaconsideredausefulaandameaningfulaforadec
isionamaking.aThereaareasixacharacteristicsathatamakeainformationabothausefulaandameaningf
ul.aIfainformationaisafreeafromaerroraorabiasaandaaccuratelyarepresentsatheaeventsaoraactivitiesa
ofatheaorganization,aitaisarepresentativeaofatheacharacteristicaof
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer:a D
10) Inventoryainformationaisaprovidedainarealatimeabyaaafirm'saaccountingainformationasystem.a
Theaaccuracyaofathisainformationaisaquestionable,ahowever,asinceatheaproductionamanageraoft
enareportsastockaoutsaofacomponentsathatatheasystemaindicatesaareainastock.aWhichaofatheafoll
owingacharacteristicsaofausefulainformationaisaabsentainatheasituationadescribedaabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:a B
a
11) CherylaMetrejeanahasabeenatheacontrolleraofaDowntownaTiresafora25ayears.aOwnershipaofat
heafirmarecentlyachangedahandsaandatheanewaownersaareaconductingaanaauditaofatheafinancialar
ecords.aTheaauditahasabeenaunableatoareproduceafinancialareportsathatawereapreparedabyaMs.a
Metrejean.aWhileathereaisanoaevidenceaofawrongdoing,atheaauditorsaareaconcernedathatatheadi
screpanciesamightacontributeatoapooradecisions.aWhichaofatheafollowingacharacteristicsaofausef
ulainformationaisaabsentainatheasituationadescribedaabove?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Answer:a F
a
12) Ina2003,aSinghaManufacturingaimplementedaaaWeb-
basedainformationasystemathataallowsaallaemployeesatoaaccessamission-
criticalainformation.aTheaintentionawasatoaincreaseaproductionaefficiency.aUnfortunately,aitahada
theaoppositeaeffect,aasadeliveriesafellabehindascheduleaandacostsaincreased.aShamanaGupta,athea
directoraofainformationatechnologyaservices,aaskedaAshleeaWellsatoacomeainaandatalkawithahimaa
boutatheasystem.aAshleeaisaaalong-
timeaemployeeaofaSingh,aandaheraopinionaisavaluedabyaherapeersaandabyaherasupervisor.
"SoaAshlee,ahow'saitagoingadownathereainatheashop?"
"Notasoagood,aShaman.aUsedatoabeaweagotaaaweeklyapickalistasoaweaknewahowatoaplanaproductio
n.aNow,aweagotathatacomputerasystem.aMostaofausacan'tafigureaoutahowatoauseaitatoadoaourajobs.aI
sathereasomeawayatoaprintaoutaaapickalist?"
3
