Question 1

____ are facts and figures in raw form.

Accepted Answer

Data are raw facts and figures that have not been processed or analyzed. Only after data has been processed and analyzed can it be transformed into useful information. Objectives and goals are not related to raw facts and figures.

Question 2

All of the following are components of reliability except:

Accepted Answer

The components of reliability are validity, accuracy, and verifiability. Feedback value is not a component of reliability but rather a component of usefulness or utility.

Question 3

The correspondence or agreement between the information and the actual events or objects that the information represents is known as

Accepted Answer

Accuracy refers to the degree to which the information correctly represents the actual events or objects that it is supposed to reflect. The other options, completeness, neutrality, and comparability, do not necessarily require a direct correspondence between the information and the events or objects they represent.

Question 4

The functional model of an information system can be described as

Accepted Answer

The functional model of an information system includes Input, Processing, Output, and Users. Input refers to the data or information that is entered into the system, processing refers to the manipulating or analyzing of the data, output refers to the result or output of the processed data, and users refer to the people who interact with the system. This order is commonly used in information system design and development, making choice B the best answer.

Question 5

A man made system consisting of people, authority, organization, policies and procedures with the objective of accomplishing the work of the planning and controlling the operations of the organization.

Accepted Answer

The description of a man-made system consisting of people, authority, organization, policies, and procedures indicate the process of management. Management process involves planning, organizing, leading, and controlling the resources of an organization to achieve its objectives. Therefore, option B (management process) is the best choice that fits the given description. Option A (organization process) is close, but it is too broad and does not fully capture the idea of managing an organization. Option C (information system) and D (strategic planning) are not complete representations of the system described in the question.

Question 6

The minimum threshold for recognition is

Accepted Answer

The minimum threshold for recognition is materiality, which means information should be recognized in the financial statements if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Relevance, reliability, and decision usefulness are also primary qualitative characteristics of financial reporting, but they are not directly related to the threshold for recognition.

Question 7

Which of the following statements is false?

Accepted Answer

This statement is false. Operations related and accounting related processes are designed by those internal to the organization, not external.

Question 8

All of the following are components of relevance except:

Accepted Answer

Verifiability is not a component of relevance; it is a component of faithful representation, another fundamental qualitative characteristic of useful financial information.

Question 9

Which of the following statements is true?

Accepted Answer

All of the statements are true. The information process serves multiple functions, including facilitating operations by maintaining inventory and customer data and providing management with the means to monitor the operations process. Additionally, operations-related processes and accounting-related processes are often integrated to ensure the efficient flow of information and data throughout the organization.

Question 10

The _________________ suggests that technology improves information available for decision making

Accepted Answer

The answer of The _________________ suggests that technology improves information...

Question 11

The degree to which information includes data about every relevant object or event necessary to make a decision is

Accepted Answer

Completeness refers to the degree to which information includes all relevant data necessary to make a decision. Accuracy refers to the degree to which information is free from errors or mistakes, neutrality refers to the absence of bias, and comparability refers to the ability to compare information from different sources or time periods.

Question 12

Historically, the relationship between an information system and an accounting information system has been:

Accepted Answer

An AIS is a subset or part of an IS. An IS comprises all the hardware, software, and network infrastructure used in an organization to process and manage information. The AIS is the specific application used by an accounting department to process accounting transactions and generate financial reports. Therefore, AIS is a component or subset of the larger IS.

Question 13

The three logical components of a business process include all of the following except:

Accepted Answer

The three logical components of a business process are management process, operations process, and information process. The organization process is not considered one of the three logical components.

Question 14

The information quality that enables users to identify similarities and differences in two pieces of information is

Accepted Answer

Comparability is the quality that allows users to identify similarities and differences between two pieces of information. It helps users to make informed decisions and understand the significance of the information being presented.

Question 15

Which of the following is an advantage of using cost as a valuation method over fair market value?

Accepted Answer

Cost is an objective, reliable, and verifiable method of valuation as it is based on actual expenditures made by the company. Therefore, all of the above options are advantages of using cost as a valuation method over fair market value.

Question 16

____ improves the decision maker's capacity to predict, confirm, or correct earlier expectations

Accepted Answer

Predictive value and feedback value improve the decision maker's ability to make accurate predictions and adjust expectations based on feedback from past decisions. This helps in improving decision-making capacity and ensuring better outcomes.

Question 17

A manmade system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output
Information to users.

Accepted Answer

An information system is the best choice as it accurately describes a system consisting of both computer-based and manual components for collecting, storing, managing data, and providing information to users. Options B, C, and D do not accurately describe the components and purpose of the system as well as option A does.

Question 18

____ is (are) data presented in a form that is useful to decision makers.

Accepted Answer

Information is data that has been processed and organized in a way that makes it useful for decision making. Choices A, C, and D all refer to actions or desired outcomes, not data.

Question 19

A man made system consisting of people, equipment, organization, policies and procedures with the objective of accomplishing the work of the organization.

Accepted Answer

The definition provided describes the concept of an operations process, which involves the coordination and integration of various resources (people, equipment, organization, policies, procedures) to achieve the goals of the organization. Management process refers to the overall approach and techniques used by managers to oversee and control organizational activities. Information system involves the collection, processing, and dissemination of information within an organization. Strategic planning involves the process of setting long-term goals and determining the best approach to achieve them.

Question 20

The text takes the following view of the relationship between an IS and an AIS:

Accepted Answer

The answer of The text takes the following view of...

Quiz 1: Introduction to Accounting Information Systems