Accounting Information Systems 1st Edition Savage Test Bank f f f f f f f
Accounting Information Systems, 1e (Savage) f f f f
Chapter 1 Accounting as Information
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1) Accounting communicates to stakeholders f f f
A) minimally required public financial data. f f f f
B) the financial outcomes of operating, investing, and financing activities.
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C) the sales strategy for the operating, marketing, and sales activities.
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D) black and white details about the economics of operating activities.
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Answer: B
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Communication
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Bloom's: Comprehension f
AICPA: AC: Reporting
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2) Accounting communicates the financial outcomes of a business's activities for
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A) operating.
B) investing.
C) financing.
D) All of these answer choices are correct.
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Answer: D
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Communication
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Bloom's: Comprehension f
AICPA: AC: Reporting
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3) In what way do management teams use accounting data?
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A) Management teams use accounting data to make business decisions. f f f f f f f f
B) Management teams use accounting data to make and execute plans. f f f f f f f f f
C) Management teams use economic and accounting data together to make decisions.
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D) All of these answer choices are correct.
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Answer: D
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Comprehension f f
AICPA: AC: Risk Assessment, Analysis, and Management
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1
,4) Which statement is TRUE? f f f
A) Accounting consists of rigid black and white rules. f f f f f f f
B) Accountants crunch numbers, not make decisions. f f f f f
C) Accounting helps support a prosperous society. f f f f f
D) Accountants focus on debits and credits, not business activities. f f f f f f f f
Answer: C
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Comprehension f
AICPA: N/A
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5) Which of the following is NOT a component of an information system?
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A) Hardware
B) Software
C) Input
D) Network
Answer: C
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
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Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Knowledge f f
AICPA: AC: Systems and Process Management
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6) Input to an information system consists of
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A) raw and unorganized data.
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B) hardware and software. f f
C) reported information. f
D) processed data. f
Answer: A
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Knowledge f f
AICPA: AC: Systems and Process Management
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7) Which of the following is a definition of output from an information system?
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A) Output is raw and unorganized data. f f f f f
B) Output is information produced by processing data.
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C) Output is database facts and figures. f f f f f
D) Output is information collected from users.
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Answer: B
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,Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Comprehension f f
AICPA: AC: Systems and Process Management
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8) Which statement concerning data is TRUE?
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A) Data is useless to a business until transformed into information.
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B) Data is the output from an information system.
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C) Data is organized into understandable formats.
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D) Data is processed before being input into the information system.
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Answer: A
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Diff: 1
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Comprehension f f
AICPA: AC: Systems and Process Management
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9) Which of the following activities would NOT result in a transaction in an accounting
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information system?
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A) Sell goods to a customer on account
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B) Purchase supplies on credit f f f
C) Prepay for six months of insurance
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D) Receive a customer order f f f
Answer: D
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Diff: 2
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Application f f
AICPA: AC: Systems and Process Management
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3
, 10) Which of the following activities results in a transaction an accounting information system?
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A) Sell goods to a customer f f f f
B) Submit an order to a vendor f f f f f
C) Create estimates for a customer f f f f
D) Receive a customer order f f f
Answer: A
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Diff: 2 f
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Application f f
AICPA: AC: Systems and Process Management
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11) A business model is f f f
A) a company's plan for operations.
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B) a company's plan for making a profit.
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C) a company's plan for identifying customers.
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D) a company's plan for production.
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Answer: B
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Diff: 1 f
Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Knowledge f f
AICPA: AC: Systems and Process Management
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12) What kind of business model should an entrepreneurial application developer consider for a
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new smartphone game that will allow users to pay for additional capabilities and/or lives during
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the game?
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A) Franchise
B) Subscription
C) Freemium
D) Peer-to-peer
Answer: C
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Diff: 2
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Learning Objective: 1.1 Explain how accounting affects both the demand for and supply of
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information.
f
Section Reference: Why is Accounting Information Important?
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AACSB: Analytic
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Bloom's: Application f f
AICPA: AC: Systems and Process Management
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4
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