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Test Bank for Accounting Information Systems 15th Edition by Romney and Steinbart
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Test Bank for Accounting Information Systems 15th Edition by Romney and Steinbart
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Test Bank for Accounting Information Systems 15thEdition by Romney and Steinbart
1
,Chapter 1 Accounting Information Systems: An Overview
1) Which of these statements below shows the
contrast between data and information?
A) Data is the output of an AIS.
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.
RIGHT ANS✔✔ B
2) 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.
RIGHT ANS✔✔ B
3) 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.
RIGHT ANS✔✔ C
4) An accounting
information system (AIS) processes to provide users with
.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
RIGHT ANS✔✔ A
2
,5) information reduces uncertainty, improves
decision makers' ability to make predictions, or confirms
expectations.
A) Timely
B) Reliable
C) Relevant
D)Complete
RIGHT ANS✔✔ C
6) Information that is free from error or bias and accurately
represents the events or activities of the organization is
A)relevant.
B) reliable / Faithful Representation.
C) verifiable.
D)timely.
RIGHT ANS✔✔ B
7) 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.
RIGHT ANS✔✔ A
8) Information is when two knowledgeable
people independently produce the same information.
A)verifiable
B) relevant
C) reliable
D)complete
RIGHT ANS✔✔ A
9) 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.
, RIGHT ANS✔✔ D
10) Inventory information is provided in real time by a firm's
accounting information system. The accuracy of this information is
questionable, however, since the production manager often
reports stock outs of components that the system indicates are in
stock. Which of these characteristics of useful information is
absent in the situation described above?
A) relevant
B)reliable
C) complete
D)timely
E)understandable
F)verifiable
G)accessible
RIGHT ANS✔✔ B
11) Cheryl Metrejean has been the controller of Downtown Tires
for 25 years. Ownership of the firm recently changed hands and
the new owners are conducting an audit of the financial records.
The audit has been unable to reproduce financial reports that were
prepared by Ms. Metrejean. While there is no evidence of
wrongdoing, the auditors are concerned that the discrepancies
might contribute to poor decisions. Which of these characteristics
of useful information is absent in the situation described above?
A) relevant
B)reliable
C) complete
D)timely
E)understandable
F)verifiable
G)accessible
RIGHT ANS✔✔ F
12) In 2003, Singh Manufacturing implemented a Web-based
information system that allows all employees to access mission-
critical information. The intention was to increase production
efficiency. Unfortunately, it had the opposite effect, as deliveries
fell behind schedule and costs increased. Shaman Gupta, the
director of information technology services, asked Ashlee Wells to
come in and talk with him about the system. Ashlee is a long-time
employee of Singh, and her opinion is valued by her peers and by
her supervisor.
"So Ashlee, how's it going down there in the shop?"
"Not so good, Shaman. Used to be we got a weekly pick list so we
knew how to plan production. Now, we got that computer system.
Most of us can't figure out how to use it to do our jobs. Is there
some way to print out a pick list?"
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