Chapter 1 Flashcards
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.
B) Information is the primary output of an AIS.
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.
B) data that has been organized and processed so that it is meaningful to the user.
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.
C) the benefits associated with obtaining the information minus the cost of producing it.
An accounting information system (AIS) processes \_\_\_\_\_\_\_\_ to provide users with \_\_\_\_\_\_\_\_. A) data; information B) data; transactions C) information; data D) data; benefits
A) data; information
\_\_\_\_\_\_\_\_ information reduces uncertainty, improves decision makers' ability to make predictions, or confirms expectations. A) Timely B) Reliable C) Relevant D) Complete
C) Relevant
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. D) timely.
B) reliable.
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.
A) complete.
Information is \_\_\_\_\_\_\_\_ when two knowledgeable people independently produce the same information. A) verifiable B) relevant C) reliable D) complete
A) verifiable
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.
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
B) reliable
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
F) verifiable
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
E) understandable
Wisconsin Dells, Wisconsin, is a popular tourist destination. During the winter months, the population dwindles to a meager few, but when summer comes, the size of the town surges. Hunter Jackson is the town sanitation engineer. When the size of the town surges, so do his responsibilities. Among them is management of the sewage processing volume. In an interview with the local paper, Hunter complained that a report on tourist population that he uses to adjust processing volume refers to data that was collected four days ago and it takes him a week to make adjustments. 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
D) timely
A frantic Barney Rubble lost a large sale because he could not access the system to verify the inventory was in stock and ready to be shipped. 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
G) accessible
Message left on voicemail: "Hi Nikki! Just landed at the airport. How about dinner this evening if you're available. Call me!" 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
C) complete
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.
D) at least $300.00.
Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 15%, the product innovation is expected to generate ROI of only 12%. As a result, the employee fails to follow up. As a result, awarding bonuses to employees based on ROI resulted in A) goal conflict. B) information overload. C) goal congruence. D) decreased value of information.
A) goal conflict.
Which of the following tradeoffs between characteristics of useful information is least objectionable?
A) incomplete information received on a timely basis
B) irrelevant information received in an understandable format
C) unreliable information easily accessible
D) verifiable information received in unreadable format
A) incomplete information received on a timely basis
Which of the following is not one of the three basic types of data about a specific sales transaction that should be captured by an Accounting Information System?
A) name of the employee who completed the sale
B) daily sales quota
C) product sold
D) date
B) daily sales quota
Define the concept of a system.
A system is a set of two or more components that are somehow interrelated and interact together to achieve a specific goal.
Paid time-off policies, job descriptions, and procedures manuals are examples of information needed to support key decisions in what business process? A) hire and train employees B) acquire inventory C) sell merchandise D) collect payment from customers
A) hire and train employees
Before a firm can identify the information needed to effectively manage a process, the firm must
A) understand the process .
B) hire programmers.
C) purchase computers and/or workstations.
D) obtain internet access.
A) understand the process .
Identify the piece of information below that is typically needed to acquire a building. A) job descriptions B) vendor performance C) market coverage D) capacity needs
D) capacity needs
Identify the piece of information below that is typically needed to acquire inventory. A) job descriptions B) vendor performance C) market coverage D) capacity needs
B) vendor performance
Identify the piece of information below that is typically needed to hire and train employees. A) job descriptions B) vendor performance C) market coverage D) capacity needs
A) job descriptions
How can query languages be used to help make better decisions?
A) They can suggest a course of action.
B) They can gather relevant data for decision making.
C) They can help the decision maker to interpret results.
D) They can model choose among alternative courses of action.
B) They can gather relevant data for decision making.
What is a key decision that needs to be made with regards to selling merchandise?
A) which credit cards to accept
B) which employees to hire
C) which public accounting firm to employ
D) how much capital to acquire
A) which credit cards to accept
What is a key decision that needs to be made with regards to acquiring inventory? A) which credit cards to accept B) which employees to hire C) which vendors to use D) how much capital to acquire
C) which vendors to use
What is a key decision that needs to be made with regards to acquiring equipment? A) the location B) pro forma income statement C) how much capital to acquire D) job descriptions
A) the location
One group that relies on both the adequate collection and transformation of data for decision-making purposes for an organization is A) management. B) interested outsiders. C) competitors. D) the government.
A) management.
Who of the following is not a stakeholder with whom an accounting information system typically communicates directly?
A) Wall Street industry analyst
B) venture capitalist
C) company that supplies raw materials
D) company that purchases finished goods for resale to consumers
A) Wall Street industry analyst
In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle
A) the revenue cycle
In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems? A) the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle D) the financing cycle
B) the expenditure cycle
