Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage
A+ Page 1
TEST BANK FOR ACCOUNTING INFORMATION SYSTEM
1ST EDITION BY ARLINE SAVAGE A+
Chapter 01: Accounting as Information
1) Accounting communicates to stakeholders
- minimally required public financial data.
- the financial outcomes of operating, investing, and financing activities.
- the sales strategy for the operating, marketing, and sales activities.
- black and white details about the economics of operating activities. Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's: Comprehension AICPA: AC: Reporting
2) Accounting communicates the financial outcomes of a business's activities for
- operating.
- investing.
- financing.
D) All of these answer choices are correct. Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Communication Bloom's: Comprehension AICPA: AC: Reporting
3) In what way do management teams use accounting data?
- Management teams use accounting data to make business decisions.
- Management teams use accounting data to make and execute plans.
- Management teams use economic and accounting data together to make decisions. 1 / 4
Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage
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D) All of these answer choices are correct. Answer: D
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Risk Assessment, Analysis, and Management
4) Which statement is TRUE?
- Accounting consists of rigid black and white rules.
- Accountants crunch numbers, not make decisions.
- Accounting helps support a prosperous society.
D) Accountants focus on debits and credits, not business activities. Answer: C
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic Bloom's: Comprehension AICPA: N/A
5) Which of the following is NOT a component of an information system?
- Hardware
- Software
- Input
- Network Answer: C Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management
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Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage
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6) Input to an information system consists of
- raw and unorganized data.
- hardware and software.
- reported information.
- processed data.
Answer: A
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Knowledge
AICPA: AC: Systems and Process Management 7) Which of the following is a definition of output from an information system?
- Output is raw and unorganized data.
- Output is information produced by processing data.
- Output is database facts and figures.
D) Output is information collected from users. Answer: B
Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
8) Which statement concerning data is TRUE?
- Data is useless to a business until transformed into information.
- Data is the output from an information system.
- Data is organized into understandable formats.
- Data is processed before being input into the information system. Answer: A 3 / 4
Test Bank for Accounting Information Systems, 1st Edition by Arline A. Savage
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Diff: 1
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Comprehension
AICPA: AC: Systems and Process Management
9) Which of the following activities would NOT result in a transaction in an accounting information system?
- Sell goods to a customer on account
- Purchase supplies on credit
- Prepay for six months of insurance
D) Receive a customer order Answer: D
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
Bloom's: Application
AICPA: AC: Systems and Process Management
10) Which of the following activities results in a transaction an accounting information system?
- Sell goods to a customer
- Submit an order to a vendor
- Create estimates for a customer
D) Receive a customer order Answer: A
Diff: 2
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of information.Section Reference: Why is Accounting Information Important? AACSB: Analytic
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