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Test Bank for Accounting Information Systems, 16th Edition by Marshall B Romney A+
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Created By: A SolutionTest Bank for Accounting Information Systems, 16th
Edition by Marshall B Romney A+
Chapter 1 Conceptual Foundations of Accounting Information Systems
1 Distinguish 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 primary output of an accounting information system.
B) Information is the primary output of an accounting information system.
C) Data is more useful in decision making than information.
D) Data and information are the same. Answer: B
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with
the system as a whole, it creates
A) system inconsistence.
B) system conflict.
C) goal inconsistence.
D) goal conflict.
Answer: D
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
3) When a subsystem achieves its goals while contributing to the organization's overall goal,
it is called
A) system match.
B) system congruence.
C) goal congruence.
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D) goal match. Answer: C
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
4) 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.
Answer: B
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
5) 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. Answer: C
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Moderate
AACSB: Analytical Thinking
6) An accounting information system (AIS) processes to provide users with .
A) data; information
B) data; transactions
C) information; data
D) data; benefits Answer: A
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
7) information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
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B) Accurate
C) Relevant
D) Complete Answer: C
Concept: Information needs and business processes Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
8) Information that is free from error or bias and faithfully represents the events or activities
of the organization is
A) relevant.
B) accurate.
C) verifiable.
D) timely. Answer: B
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
9) Information that does not omit important aspects of the underlying events or activities
that it measures is
A) complete.
B) available.
C) relevant.
D) timely. Answer: A
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
10) Information is when two knowledgeable people independently produce the same
information.
A) verifiable
B) relevant
C) accurate
D) complete Answer: A
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
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11) Data must be converted into information to be considered useful and meaningful for
decision making. There are 14 characteristics that make information both useful and meaningful.
If information is free from error or bias and faithfully represents the events or activities of the
organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) accuracy.
Answer: D
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
12) Data must be converted into information to be considered useful and meaningful for
decision making. There are 14 characteristics that make information both useful and meaningful.
If information can help reduce uncertainty, improves decision making, or confirms or corrects
prior expectations, it is representative of the characteristic of
A) objectivity.
B) relevance.
C) completeness.
D) truthfulness. Answer: B
Concept: The concept of information Objective: Learning Objective 1 Difficulty: Easy
AACSB: Analytical Thinking
13) Data must be converted into information to be considered useful and meaningful for
decision making. There are 14 characteristics that make information both useful and meaningful.
If the same information can be reproduced by two independent and knowledgeable people, it is
representative of the characteristic of
A) accuracy.
B) relevance.
C) verifiability.
D) truthfulness. Answer: C
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