ACCOUNTING INFORMATION SYSTEMS
HURT 3RD EDITION TEST BANK
,ch1
Student: ___________________________________________________________________________
1. An accounting information system is a set of interrelated:
A. Activities and documents only.
B. Activities and technologies only.
C. Documents and technologies only.
D. Activities, documents and technologies.
2. The components of an accounting information system are designed to collect ___ and report ___.
A. Data, information
B. Data, data
C. Information, information
D. Information, data
3. An accounting information system is defined by the text as a set of three interrelated elements. Which of
the following choices best gives an example of each element?
A. Buying inventory, selling inventory, balance sheet
B. Buying inventory, sales invoice, general ledger software
C. Selling inventory, sales invoice, balance sheet
D. Selling inventory, writing a check, general ledger software
4. An accounting information system transforms inputs into outputs via processes such as:
A. Journalizing transactions and posting them to the ledger
B. Identifying the elements of the FASB Conceptual Framework
C. Always utilizing information technology
D. Recognizing and adapting to the cost-benefit constraint
5. Which of the following best fits the definition of an accounting information system explained in the text?
A. A checkbook register
B. A publicly-traded corporation’s financial statements
C. Processed source documents leading to the general purpose financial statements
D. An Excel spreadsheet of financial statement ratios
,6. April compiled checks, receipts and invoices, then entered them into Quickbooks. She printed out her
financial statements and took them to the bank as documentation for a loan application. In that scenario,
checks, receipts and invoices could be referred to as:
A. Documents and data
B. Data and information
C. Documents and information
D. Documents, data and information
7. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly
payment needed to pay off the loan within three years. Which of the following statements is / are most true?
A. The required monthly payment is an example of “information,” as the term is used in the definition of an
accounting information system.
B. The five-year note payable would be considered a “technology” if it were prepared with computer software.
C. Both A and B are true.
D. Neither A nor B is true.
8. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly
payment needed to pay off the loan within three years. Based on the definition of an accounting information
system provided in the text, the five-year note payable could be considered: (i) an input, (ii) an output, (iii) a
document.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
9. Eugene is a self-employed business owner. In February 2011, he gathered together his income and expense
records for 2010. He used them, along with appropriate software, to prepare his tax return, which he then
transmitted to the Internal Revenue Service. Has Eugene used an accounting information system based on the
definition provided in the text?
A. Yes, because he used software to prepare his tax return.
B. Yes, because all elements of the definition are present.
C. No, because all accounting information systems must produce general purpose financial statements
D. No, because no internal decision maker is mentioned.
10. The vice president for customer service of First United Bank determined that Lee had overpaid his
mortgage. The bank sent Lee a letter asking him if he wanted a refund of the overpayment or if he wanted to
apply it to future mortgage payments. Has the vice president for customer service used an accounting
information system based on the definition provided in the text?
A. No, because no mention is made of software.
B. No, because the letter does not constitute an output.
C. No, because no mention is made of general purpose financial statements.
D. Yes, because all elements of the definition are present or implied.
, 11. Accounting information systems is an important area of study for future accountants because:
A. All organizations use information technology in their AIS.
B. All organizations need an AIS.
C. Both A and B.
D. Neither A nor B.
12. Accounting information systems is an important area of study for future accountants because a
well-designed AIS can respond to many elements of the FASB Conceptual Framework. All of the following
are parts of the conceptual framework except:
A. Principles of debit and credit
B. Objective of financial reporting
C. Elements of financial statements
D. Qualitative characteristics of accounting information
13. Which of the following best explains why AIS is an important area of study for future accountants?
A. AIS is the only area of accounting where students learn about information technology.
B. AIS is the only area of accounting where students learn about the FASB Conceptual Framework.
C. Both A and B
D. Neither A nor B
14. AIS is an important area of study for future accountants because a well-designed AIS can recognize and
adapt to the cost-benefit constraint. Which of the following statements is most true?
A. Nonfinancial costs and benefits are less important than financial costs and benefits in designing an AIS.
B. Resistance to change is a potential cost when making changes to the AIS.
C. Financial statement users benefit from more information when it comes from the AIS.
D. Source documents should be electronic, rather than paper-based, because electronic documents are more
cost effective.
15. AIS is an important area of study for future accountants because a well-designed AIS can respond to many
elements of the conceptual framework. Which of the following best pairs an element of the conceptual
framework with a specific example of that element?
A. Relevance, land reported at historical cost
B. Consistency, land reported at historical cost
C. Matching, land is not depreciated
D. Gain, difference between historical cost and current market value for land used in operations
HURT 3RD EDITION TEST BANK
,ch1
Student: ___________________________________________________________________________
1. An accounting information system is a set of interrelated:
A. Activities and documents only.
B. Activities and technologies only.
C. Documents and technologies only.
D. Activities, documents and technologies.
2. The components of an accounting information system are designed to collect ___ and report ___.
A. Data, information
B. Data, data
C. Information, information
D. Information, data
3. An accounting information system is defined by the text as a set of three interrelated elements. Which of
the following choices best gives an example of each element?
A. Buying inventory, selling inventory, balance sheet
B. Buying inventory, sales invoice, general ledger software
C. Selling inventory, sales invoice, balance sheet
D. Selling inventory, writing a check, general ledger software
4. An accounting information system transforms inputs into outputs via processes such as:
A. Journalizing transactions and posting them to the ledger
B. Identifying the elements of the FASB Conceptual Framework
C. Always utilizing information technology
D. Recognizing and adapting to the cost-benefit constraint
5. Which of the following best fits the definition of an accounting information system explained in the text?
A. A checkbook register
B. A publicly-traded corporation’s financial statements
C. Processed source documents leading to the general purpose financial statements
D. An Excel spreadsheet of financial statement ratios
,6. April compiled checks, receipts and invoices, then entered them into Quickbooks. She printed out her
financial statements and took them to the bank as documentation for a loan application. In that scenario,
checks, receipts and invoices could be referred to as:
A. Documents and data
B. Data and information
C. Documents and information
D. Documents, data and information
7. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly
payment needed to pay off the loan within three years. Which of the following statements is / are most true?
A. The required monthly payment is an example of “information,” as the term is used in the definition of an
accounting information system.
B. The five-year note payable would be considered a “technology” if it were prepared with computer software.
C. Both A and B are true.
D. Neither A nor B is true.
8. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly
payment needed to pay off the loan within three years. Based on the definition of an accounting information
system provided in the text, the five-year note payable could be considered: (i) an input, (ii) an output, (iii) a
document.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
9. Eugene is a self-employed business owner. In February 2011, he gathered together his income and expense
records for 2010. He used them, along with appropriate software, to prepare his tax return, which he then
transmitted to the Internal Revenue Service. Has Eugene used an accounting information system based on the
definition provided in the text?
A. Yes, because he used software to prepare his tax return.
B. Yes, because all elements of the definition are present.
C. No, because all accounting information systems must produce general purpose financial statements
D. No, because no internal decision maker is mentioned.
10. The vice president for customer service of First United Bank determined that Lee had overpaid his
mortgage. The bank sent Lee a letter asking him if he wanted a refund of the overpayment or if he wanted to
apply it to future mortgage payments. Has the vice president for customer service used an accounting
information system based on the definition provided in the text?
A. No, because no mention is made of software.
B. No, because the letter does not constitute an output.
C. No, because no mention is made of general purpose financial statements.
D. Yes, because all elements of the definition are present or implied.
, 11. Accounting information systems is an important area of study for future accountants because:
A. All organizations use information technology in their AIS.
B. All organizations need an AIS.
C. Both A and B.
D. Neither A nor B.
12. Accounting information systems is an important area of study for future accountants because a
well-designed AIS can respond to many elements of the FASB Conceptual Framework. All of the following
are parts of the conceptual framework except:
A. Principles of debit and credit
B. Objective of financial reporting
C. Elements of financial statements
D. Qualitative characteristics of accounting information
13. Which of the following best explains why AIS is an important area of study for future accountants?
A. AIS is the only area of accounting where students learn about information technology.
B. AIS is the only area of accounting where students learn about the FASB Conceptual Framework.
C. Both A and B
D. Neither A nor B
14. AIS is an important area of study for future accountants because a well-designed AIS can recognize and
adapt to the cost-benefit constraint. Which of the following statements is most true?
A. Nonfinancial costs and benefits are less important than financial costs and benefits in designing an AIS.
B. Resistance to change is a potential cost when making changes to the AIS.
C. Financial statement users benefit from more information when it comes from the AIS.
D. Source documents should be electronic, rather than paper-based, because electronic documents are more
cost effective.
15. AIS is an important area of study for future accountants because a well-designed AIS can respond to many
elements of the conceptual framework. Which of the following best pairs an element of the conceptual
framework with a specific example of that element?
A. Relevance, land reported at historical cost
B. Consistency, land reported at historical cost
C. Matching, land is not depreciated
D. Gain, difference between historical cost and current market value for land used in operations
