ACCT 306 Final Exam | Complete Solutions (Verified)
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Course
ACCT 306
Institution
ACCT 306
ACCT 306 Final Exam | Complete Solutions (Verified) Which of the following 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 inf...
Which of the following 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.
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.
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.
An accounting information system (AIS) processes ________ to provide users with
________.
A) data; information
B) data; transactions
C) information; data
D) data; benefits
________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete
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.
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.
Information is ________ when two knowledgeable people independently produce the
same information:
A) verifiable
B) relevant
C) reliable
D) complete
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.
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 the following 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
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 the
following 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
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?"
Shaman thought for a while before responding. "Well, Ashlee, to tell you the truth, I'm
not so sure how to do it myself, but there must be a way. We'll bring in the consultants
that helped us build the system. Maybe they can help."
Which of the following 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
Chopra, Limited, is an Indian company operating in New York state. It offers stylized,
boutique public relations services to upscale retailers in quaint New England towns. A
major source of revenue is a weekly newsletter that reports on current and projected
tourist travel and spending patterns. Preparation of the newsletter requires study and
analysis of weather conditions, economic activity, and travel costs. It is available at an
annual subscription rate of $299.99. There are currently 190 subscribers. Preparation
and distribution of the newsletter costs $12,000 annually. The value of information to
subscribers is
, A) $236.83.
B) $44,998.10.
C) less than $63.16.
D) at least $300.00.
Pre-numbering of source documents helps to verify that:
A) documents have been used in order.
B) company policies were followed.
C) all transactions have been recorded.
D) source data automation was used to capture data.
Source documents generally help to improve accuracy in transaction processing
because
A) they specify which information to collect.
B) logically related data can be grouped in the same area of the document.
C) they provide directions and steps for completing the form.
D) All of the above are correct.
In transaction processing, generally which activity comes first?
A) recording data in a journal
B) posting items to special journals
C) capturing data on source documents
D) recording data in a general ledger
Which of the following is the greatest risk to information systems and causes the
greatest dollar losses?
A) human errors and omissions
B) physical threats such as natural disasters
C) dishonest employees
D) fraud and embezzlement
Identify the threat below that is not one of the four types of threats faced by accounting
information systems.
A) natural and political disasters
B) software errors and equipment malfunctions
C) unintentional acts
D) system inefficiency
"Cooking the books" is typically accomplished by all the following except
A) overstating inventory.
B) accelerating recognition of revenue.
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