Ais Exam 1

Front 1

Which of thefollowing statements below shows the contrast between data and information?

Back 1

Information is theprimary output of an AIS

Front 2

Information is

Back 2

data that has beenorganized and processed so that it's meaningful

Front 3

The value ofinformation can best be defined as

Back 3

the benefits producedby possessing and using the information minus the cost of producing it.

Front 4

An accountinginformation system (AIS) processes ________ to provide users with ________.

Back 4

data; information

Front 5

Informationthat reduces uncertainty, improves decision makers' ability to makepredictions, or confirms or corrects their prior expectations, is said to be

Back 5

relevant

Front 6

Informationthat is free from error or bias and accurately represents the events oractivities of the organization is

Back 6

reliable

Front 7

Informationthat does not omit important aspects of the underlying events or activitiesthat it measures is

Back 7

accessible

Front 8

Whentwo knowledgeable people acting independently each produce the same information,this information is said to be

Back 8

verifiable

Front 9

Datamust be converted into information to be considered useful and meaningful fordecision-making. There are six characteristics that make information bothuseful and meaningful. If information is free from error or bias and accuratelyrepresents the events or activities of the organization, it is representativeof the characteristic of

Back 9

reliability

Front 10

An accountinginformation system must be able to perform which of the following tasks?

Back 10

A)collect transaction data

B)process transaction data

C)provide adequate controls

D)all of the above

Answer: D

Front 11

Which of thefollowing is not one of the components of an AIS?

Back 11

Hardware

Front 12

The primary objectiveof accounting is to

Back 12

provide usefulinformation to decision makers.

Front 13

The AIS must includecontrols to ensure

Back 13

safetyand availability of data.

information producedfrom data is accurate.

Front 14

An AIS provides valueby

Back 14

A)improving products or services through information that increases quality andreduces costs.

B)providing timely and reliable information to decision makers.

Front 15

Agood example of how an AIS is used to share knowledge within an organization is

Back 15

theuse of a corporate database to help staff identify the relevant experts who canhelp with a particular client.

Front 16

A well-designed AIScan improve the decision-making function within the organization. Whichstatement below would describe a limitation, rather than a benefit, of anefficient AIS?

Back 16

AnAIS provides to its users an abundance of information without any filtering orcondensing of such information.

Front 17

Manymodern accounting software packages offer separate transaction cycle modules.What is the reason for this?

Back 17

Everyorganization does not need to implement all of the available transaction cyclemodules.

Front 18

Thebusiness owners obtain financing from outside investors, which results in aninflow of cash into the company. This transaction is considered to be part ofwhich cycle?

Back 18

the financing cycle

Front 19

Which of thefollowing is not a transaction cycle?

Back 19

neral ledger andreporting

Front 20

Whichof the following statements is false?

Back 20

Every organizationshould implement every transaction cycle module.

Front 21

Groups of relatedbusiness activities such as the acquisition of merchandise and payment ofvendors are called

Back 21

transaction cycles