AIS Exam 1 Practice Quiz Questions with Correct Answers Which of the following statements below shows the contrast between data and information?Data and information are the same.Information is the primary output of an accounting information system.Data is more useful in decision making than information.Data is the primary output of an accounting information system. - Correct Answer Information is the primary output of an accounting information system.When a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a whole, it creates goal inconsistence.goal conflict.system conflict.system inconsistence. - Correct Answer goal conflict.The value of information can best be determined by its relevance to decision makers.its usefulness to decision makers.the benefits associated with obtaining the information minus the cost of producing it. 1 / 4
the extent to which it optimizes the value chain. - Correct Answer the benefits associated with obtaining the information minus the cost of producing it.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?name of the employee who completed the sale product sold daily sales quota date - Correct Answer daily sales quota Information that is free from error or bias and accurately represents the events or activities of the organization is relevant.verifiable.timely.reliable. - Correct Answer reliable.In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems?the human resources / payroll cycle the revenue cycle 2 / 4
the expenditure cycle the financing cycle - Correct Answer the revenue cycle The ________ is not a transaction cycle.general ledger and reporting cycle human resources cycle revenue cycle expenditure cycle - Correct Answer general ledger and reporting cycle Identify the false statement below.Every organization should implement every transaction cycle module.A service company does not have an inventory system.Retail stores do not have a production cycle.Financial institutions have installment-loan cycles. - Correct Answer Every organization should implement every transaction cycle module.An accounting information system must be able to perform which of the following tasks?provide adequate controls All of these 3 / 4
process transaction data collect transaction data - Correct Answer All of these The primary objective of accounting is to prepare financial statements.ensure the profitability of an organization.implement strong internal controls.provide useful information to decision makers. - Correct Answer provide useful information to decision makers.Which of the following is a true statement?Information technology directly influences organizational culture, but not business strategy.Business strategy directly influences AIS, but not information technology.AIS directly influences information technology, but not business strategy.Organizational culture directly influences business strategy, but not AIS. - Correct Answer Business strategy directly influences AIS, but not information technology.Which of the following is a primary activity in the value chain?marketing and sales infrastructure
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