, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
TEST BANK FOR ACCOUNTING INFORMATION SYSTEMS 2nd EDITION BY RICHARDSON
[CHAPTER 1 – 16] LATEST UPDATE VERSION 2025/2026!!!
Chapter 1 Accounting Information Systems and Firm Value
1) Accounting and Finance is a primary activity in the value chain.
Answer: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2) Accounting Information Systems at this date are all computerized.
Answer: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
3) Business value includes all those items, events and interactions that determine the financial health
and well-being of the firm.
Answer: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4) The Certified Information Technology Professional (CITP) is a professional designation for those
with a broad range of technology knowledge and does not require a CPA.
Answer: FALSE
Diff: 1
Topic: Role of Accountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications
related to accounting information systems.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought
by those performing IT audits.
Answer: TRUE
Diff: 1
Topic: Role of Accountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications
related to accounting information systems.
Page 1
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6) Information is defined as being data organized in a meaningful way that is useful to the user.
Answer: TRUE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7) Data is defined as being information organized in a meaningful way that is useful to the user.
Answer: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8) A systems analyst analyzes a business problem that might be addressed by an information system
and recommends software or systems to address that problem.
Answer: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
9) A value chain is defined as the flow of materials, information, payments, and services from
customer to supplier.
Answer: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
10) Relevant information is that information that is free from bias and error.
Answer: FALSE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
11) The characteristics of relevant information include predictive value, feedback value and timeliness.
Answer: TRUE
Page 2
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
12) The characteristics of reliable information are that the information is verifiable, without bias and
timely.
Answer: FALSE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
13) Information overload is defined as the difficulty a person faces in understanding a problem and
making a decision as a consequence of too much information.
Answer: TRUE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
14) The main financial benefit of Customer Relationship Management practices reduces the cost of
goods sold.
Answer: FALSE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
15) An efficient Enterprise System can significantly lower the cost of support processes included in
sales, general, and administrative expenses.
Answer: TRUE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
16) An accounting information system (AIS) is defined as being an information system that records,
processes and reports on transactions to provide financial and nonfinancial information for
decision making and control.
Answer: TRUE
Diff: 1
Topic: Definition of Accounting Information Systems
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
Page 3
TEST BANK FOR ACCOUNTING INFORMATION SYSTEMS 2nd EDITION BY RICHARDSON
[CHAPTER 1 – 16] LATEST UPDATE VERSION 2025/2026!!!
Chapter 1 Accounting Information Systems and Firm Value
1) Accounting and Finance is a primary activity in the value chain.
Answer: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
2) Accounting Information Systems at this date are all computerized.
Answer: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
3) Business value includes all those items, events and interactions that determine the financial health
and well-being of the firm.
Answer: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
4) The Certified Information Technology Professional (CITP) is a professional designation for those
with a broad range of technology knowledge and does not require a CPA.
Answer: FALSE
Diff: 1
Topic: Role of Accountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications
related to accounting information systems.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
5) The Certified Information Systems Auditor (CISA) is a professional designation generally sought
by those performing IT audits.
Answer: TRUE
Diff: 1
Topic: Role of Accountants in Accounting Information Systems
Learning Objective: 01-03 Distinguish the roles of accountants in providing information, and explain certifications
related to accounting information systems.
Page 1
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
6) Information is defined as being data organized in a meaningful way that is useful to the user.
Answer: TRUE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
7) Data is defined as being information organized in a meaningful way that is useful to the user.
Answer: FALSE
Diff: 1
Topic: Data versus Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
8) A systems analyst analyzes a business problem that might be addressed by an information system
and recommends software or systems to address that problem.
Answer: TRUE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
9) A value chain is defined as the flow of materials, information, payments, and services from
customer to supplier.
Answer: FALSE
Diff: 1
Topic: The Value Chain and Accounting Information Systems
Learning Objective: 01-04 Describe how business processes affect the firm's value chain.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
10) Relevant information is that information that is free from bias and error.
Answer: FALSE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
11) The characteristics of relevant information include predictive value, feedback value and timeliness.
Answer: TRUE
Page 2
, ACCOUNTING INFORMATION SYSTEMS (RICHARDSON 2ND EDITION)
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
12) The characteristics of reliable information are that the information is verifiable, without bias and
timely.
Answer: FALSE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
13) Information overload is defined as the difficulty a person faces in understanding a problem and
making a decision as a consequence of too much information.
Answer: TRUE
Diff: 1
Topic: Definition of Accounting Information Systems; Attributes of Useful Information
Learning Objective: 01-02 Distinguish among data, information, and an information system.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
14) The main financial benefit of Customer Relationship Management practices reduces the cost of
goods sold.
Answer: FALSE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
15) An efficient Enterprise System can significantly lower the cost of support processes included in
sales, general, and administrative expenses.
Answer: TRUE
Diff: 1
Topic: AIS, Firm Profitability, and Stock Prices
Learning Objective: 01-08 Assess the impact of AIS on firm profitability and stock prices.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Industry; FN Decision Making
16) An accounting information system (AIS) is defined as being an information system that records,
processes and reports on transactions to provide financial and nonfinancial information for
decision making and control.
Answer: TRUE
Diff: 1
Topic: Definition of Accounting Information Systems
Learning Objective: 01-01 Define an accounting information system, and explain characteristics of useful information.
Bloom's: Remember
Page 3
