Test Bank for Accounting Information
Systems 15th Edition by Marshall
Romney & Paul Steinbart
All Chapters 1-19 With Verified Q&As| A+ PASS
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish data from information, discuss the characteristics of useful information, and explain how
to determine the value of information.
1) Which of the following statements below shows the contrast between data 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.
Correct 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.
Correct 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.
Correct Answer: C
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,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make predictions, or
confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
7) Information that does not omit important aspects of the underlying events or activities that it measures
is
A) complete.
B) accessible.
C) relevant.
D) timely. Correct Answer: A
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, 8) Information is when two knowledgeable people independently produce the same information.
A) verifiable
B) relevant
C) reliable
D) complete Correct 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 useful and meaningful. If information is free
from error or bias and accurately represents the events or activities of the organization, it is representative
of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Correct Answer: D
10) Inventory information is provided in real time by a firm's accounting information system. The
accuracy of this information is questionable, however, since the production manager often reports stock
outs of components that the system indicates are in stock. Which of the following characteristics of useful
information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible Correct Answer: B
4|Page
Systems 15th Edition by Marshall
Romney & Paul Steinbart
All Chapters 1-19 With Verified Q&As| A+ PASS
1|Page
, Chapter 1 Accounting Information Systems: An Overview
1.1Distinguish data from information, discuss the characteristics of useful information, and explain how
to determine the value of information.
1) Which of the following statements below shows the contrast between data 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.
Correct 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.
Correct 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.
Correct Answer: C
2|Page
,4) An accounting information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits Correct Answer: A
5) information reduces uncertainty, improves decision makers' ability to make predictions, or
confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete Correct Answer: C
6) Information that is free from error or bias and accurately represents the events or activities of the
organization is
A) relevant.
B) reliable / Faithful Representation.
C) verifiable.
D) timely.
Correct Answer: B
7) Information that does not omit important aspects of the underlying events or activities that it measures
is
A) complete.
B) accessible.
C) relevant.
D) timely. Correct Answer: A
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, 8) Information is when two knowledgeable people independently produce the same information.
A) verifiable
B) relevant
C) reliable
D) complete Correct 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 useful and meaningful. If information is free
from error or bias and accurately represents the events or activities of the organization, it is representative
of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
Correct Answer: D
10) Inventory information is provided in real time by a firm's accounting information system. The
accuracy of this information is questionable, however, since the production manager often reports stock
outs of components that the system indicates are in stock. Which of the following characteristics of useful
information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible Correct Answer: B
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