Test Bank For Accounting Information System (AIS)
Chapter 1 (new version)
MULTIPLE CHOICE
1. A set of two or more interrelated components that interact to achieve a goal is:
a) A system
b) An accounting information system
c) Data
d) Mandatory information
2. This results when a subsys...
Chapter 1 (new version)
MULTIPLE CHOICE
1. A set of two or more interrelated components that interact to achieve a goal is:
a) A system
b) An accounting information system
c) Data
d) Mandatory information
2. This results when a subsystem achieves its goals while contributing to the
organization's overall goal.
a) Goal conflict
b) Goal congruence
c) Value of information
d) Systems congruence
3. Goal conflict may result when
a) A decision or action of a subsystem is inconsistent with the system as a whole.
b) A subsystem achieves its goals while contributing to the organization's overall
goal.
c) Duplicate recording, storage and processes are eliminated.
d) The data exceeds the amount the human mind can absorb and process.
4. Facts that are collected, recorded, stored and processed by an information system
a) Information
b) Data
c) Systems
d) Mandatory information
5. Information is
a) What happens when the data exceeds the amount the human mind can absorb.
b) The benefit produced by the information minus the cost of producing it.
c) Facts that are collected, recorded, stored, and processed by an information system.
d) Data that have been organized and processed to provide meaning to a user.
6. Data are
a) facts entered, stored, and processed by an information system.
b) processed output that is useful to decision makers.
c) another word for information.
d) quantitative facts that are not qualitative by nature.
7. Which of the following statements below shows the contrast between data and
information?
a) Data is the output of an AIS.
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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.
8. Information is
a) basically the same as data.
b) raw facts about transactions.
c) potentially useful facts when processed in a timely manner.
d) data that has been organized and processed so that it's meaningful.
9. Humans can absorb and process only so much information. Information __________
occurs when those limits are passed.
a) overload
b) excess
c) anxiety
d) discretion
10. The value of information can best be defined as
a) how useful it is to decision makers.
b) the benefits produced by possessing and using the information minus the cost of
producing it.
c) how relevant it is.
d) the extent to which it maximizes the value chain.
11. The benefit produced by the information minus the cost of producing it.
a) Goal congruence
b) Information
c) Information overload
d) Value of information
12. An accounting information system (AIS) processes __________ to provide users with
__________.
a) data; information
b) data; transactions
c) information; data
d) data; benefits
13. How many components are found in an AIS?
a) three
b) four
c) five
d) six
14. An accounting information system in part consists of
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a) People, hardware and programs.
b) Information, programs and computers.
c) People, procedures, data, software and information technology infrastructure.
d) Internal controls and accounting records.
15. Information that reduces uncertainty, improves decision makers' ability to make
predictions, or confirms or corrects their prior expectations, is said to be
a) Complete
b) Relevant
c) Reliable
d) Timely
16. Information that is free from error or bias and accurately represents the events or
activities of the organization is
a) Relevant
b) Reliable
c) Verifiable
d) Timely
17. 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
18. When two knowledgeable people acting independently each produce the same
information, this information is said to be
a) Complete
b) Relevant
c) Reliable
d) Verifiable
19. 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
20. The primary consideration when producing this type of information is that its benefits
exceeds its costs.
a) Discretionary information
b) Essential information
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