ACC 304 Midterm 1 Exam | Questions with 100% Correct Answers Information is best described as a) raw facts about transactions. b) data that have been organized and processed to provide meaning and improve decision making. c) facts that are collected, recorded, stored, and processed by an informat...
a) raw facts about transactions.
b) data that have been organized and processed to provide meaning and improve
decision making.
c) facts that are collected, recorded, stored, and processed by an information system.
d) A set of related, coordinated, and structured data.
The value of information can best be determined by
a) the benefit provided by information less the cost of producing it.
b) the relevance provided to decision makers.
c) the time it takes to help decision makers make their decisions.
d) the usefulness provided to decision makers.
________ information reduces uncertainty, improves decision making, or confirms or
corrects prior expectations.
a) Verifiable
b) Reliable
c) Complete
d) Relevant
Joey Smith has been the controller of Nadia Cake for the past 5 years. The owners of
Nadia have recently decided to expand their operation and are in the process of
obtaining a loan from a local bank. In order to be qualified for the loan, the bank asks
Nadia to conduct an audit of the financial records. The auditors have been unable to
obtain Nadia's financial statements that were prepared by Joey. While there is no
evidence of wrongdoing, the auditors are not able to complete the audit. Which of the
following characteristics of useful information is absent in the situation described
above?
a) Verifiable
b) Reliable
c) Complete
d) Accessible
Before a company can identify the information needed to effectively manage a process,
the company must
a) consult with its operation department.
b) upgrade its information system.
, c) hire an information system director.
d) understand its business process.
In which transaction cycle would information for generating customer orders be most
likely to pass between internal and external accounting information systems?
a) The expenditure cycle.
b) The HR/payroll cycle.
c) The financing cycle.
d) The revenue cycle.
Which of the following is not a transaction cycle?
a) The revenue cycle.
b) The expenditure cycle.
c) The general ledger cycle.
d) The HR/payroll cycle.
Which of the following is an example of a common activity in an AIS?
a) Selling goods and services and collecting cash.
b) Keeping track of the number of customers who visited the company's website.
c) Recording sales calls for marketing purposes.
d) Organizing community services for the company.
All of the following are ways an AIS can add value to an organization except:
a) Improving internal controls
b) Improving efficiency
c) Sharing knowledge
d) Increasing product costs
Which of the following is NOT a component of an AIS?
a) people
b) IT infrastructure
c) software
d) company culture
What is the first step in the data processing cycle?
a) Storage
b) Processing
c) Output
d) Input
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