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Test Bank for Accounting Information Systems 15th Edition by Marshall B Romney, Paul J. Steinbart, Scott L. Summers, David A. Wood A+€19,54
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Accounting Information Systems, 15e (Romney)
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.
M
Answer: B
Concept: The concept of information
ED
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
C
2) When a subsystem's goals are inconsistent with the goals of another subsystem or with the
system as a whole, it creates
O
A) system inconsistence.
B) system conflict.
C) goal inconsistence.
N
D) goal conflict.
Answer: D
N
Concept: The concept of information
Objective: Learning Objective 1
O
Difficulty: Easy
AACSB: Analytical Thinking
IS
3) When a subsystem achieves its goals while contributing to the organization's overall goal, it is
called
SE
A) system match.
B) system congruence.
C) goal congruence.
U
D) goal match.
Answer: C
R
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
M
5) The value of information can best be determined by
A) its usefulness to decision makers.
ED
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
C
Concept: The concept of information
Objective: Learning Objective 1
O
Difficulty: Moderate
AACSB: Analytical Thinking
N
6) An accounting information system (AIS) processes to provide users with .
A) data; information
N
B) data; transactions
C) information; data
O
D) data; benefits
Answer: A
IS
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
SE
AACSB: Analytical Thinking
7) information reduces uncertainty, improves decision makers' ability to make
U
predictions, or confirms expectations.
A) Timely
R
B) Reliable
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 accurately 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
M
9) Information that does not omit important aspects of the underlying events or activities that it
ED
measures is
A) complete.
B) accessible.
C) relevant.
C
D) timely.
Answer: A
O
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
N
AACSB: Analytical Thinking
N
10) Information is when two knowledgeable people independently produce the same
information.
O
A) verifiable
B) relevant
IS
C) reliable
D) complete
Answer: A
SE
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
U
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 accurately represents the events or activities of the
organization, it is representative of the characteristic of
A) relevancy.
B) timeliness.
C) understandability.
D) accurate.
Answer: D
Concept: The concept of information
Objective: Learning Objective 1
M
Difficulty: Easy
AACSB: Analytical Thinking
ED
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
C
expectations, it is representative of the characteristic of
A) reliability.
O
B) relevance.
C) complete.
D) truthful.
N
Answer: B
Concept: The concept of information
N
Objective: Learning Objective 1
Difficulty: Easy
O
AACSB: Analytical Thinking
IS
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
SE
representative of the characteristic of
A) reliability.
B) relevance.
U
C) verifiability.
D) truthful.
R
Answer: C
Concept: The concept of information
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
4
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