ch01Student: ___________________________________________________________________________1. An accounting information system is a set of interrelated:  A. Activities and documents only.B. Activities and technologies only.C. Documents and technologies only.D. Activities, documents and technologies. 2. The components of an accounting information system are designed to collect ___ and report ___.  A. Data, informationB. Data, dataC. Information, informationD. Information, data 3. An accounting information system is defined by the text as a set of three interrelated elements. Which of the following choices best gives an example of each element?  A. Buying inventory, selling inventory, balance sheetB. Buying inventory, sales invoice, general ledger softwareC. Selling inventory, sales invoice, balance sheetD. Selling inventory, writing a check, general ledger software 4. An accounting information system transforms inputs into outputs via processes such as:  A. Journalizing transactions and posting them to the ledgerB. Identifying the elements of the FASB Conceptual FrameworkC. Always utilizing information technologyD. Recognizing and adapting to the cost-benefit constraint 5. Which of the following best fits the definition of an accounting information system explained in the text?  A. A checkbook registerB. A publicly-traded corporation’s financial statementsC. Processed source documents leading to the general purpose financial statementsD. An Excel spreadsheet of financial statement ratios 6. April compiled checks, receipts and invoices, then entered them into Quickbooks. She printed out her financial statements and took them to the bank as documentation for a loan application. In that scenario, checks, receipts and invoices could be referred to as:  A. Documents and dataB. Data and informationC. Documents and informationD. Documents, data and information 7. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly payment needed to pay off the loan within three years. Which of the following statements is / are most true?  A. The required monthly payment is an example of “information,” as the term is used in the definition of an accounting information system.B. The five-year note payable would be considered a “technology” if it were prepared with computer software.C. Both A and B are true.D. Neither A nor B is true.8. Claudia borrowed money from her bank, signing a five-year note payable. She then calculated the monthly payment needed to pay off the loan within three years. Based on the definition of an accounting information system provided in the text, the five-year note payable could be considered: (i) an input, (ii) an output, (iii) a document.  A. I and II onlyB. I and III onlyC. II and III onlyD. I, II and III 9. Eugene is a self-employed business owner. In February 2011, he gathered together his income and expense records for 2010. He used them, along with appropriate software, to prepare his tax return, which he then transmitted to the Internal Revenue Service. Has Eugene used an accounting information system based on the definition provided in the text?  A. Yes, because he used software to prepare his tax return.B. Yes, because all elements of the definition are present.C. No, because all accounting information systems must produce general purpose financial statementsD. No, because no internal decision maker is mentioned. 10. The vice president for customer service of First United Bank determined that Lee had overpaid his mortgage. The bank sent Lee a letter asking him if he wanted a refund of the overpayment or if he wanted to apply it to future mortgage payments. Has the vice president for customer service used an accounting information system based on the definition provided in the text?  A. No, because no mention is made of software.B. No, because the letter does not constitute an output.C. No, because no mention is made of general purpose financial statements.D. Yes, because all elements of the definition are present or implied. 11. Accounting information systems is an important area of study for future accountants because:  A. All organizations use information technology in their AIS.B. All organizations need an AIS.C. Both A and B.D. Neither A nor B. 12. Accounting information systems is an important area of study for future accountants because a well-designed AIS can respond to many elements of the FASB Conceptual Framework. All of the following are parts of the conceptual framework except:  A. Principles of debit and creditB. Objective of financial reportingC. Elements of financial statementsD. Qualitative characteristics of accounting information 13. Which of the following best explains why AIS is an important area of study for future accountants?  A. AIS is the only area of accounting where students learn about information technology.B. AIS is the only area of accounting where students learn about the FASB Conceptual Framework.C. Both A and BD. Neither A nor B 14. AIS is an important area of study for future accountants because a well-designed AIS can recognize and adapt to the cost-benefit constraint. Which of the following statements is most true?  A. Nonfinancial costs and benefits are less important than financial costs and benefits in designing an AIS.B. Resistance to change is a potential cost when making changes to the AIS.C. Financial statement users benefit from more information when it comes from the AIS.D. Source documents should be electronic, rather than paper-based, because electronic documents are more cost effective.15. AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following best pairs an element of the conceptual framework with a specific example of that element?  A. Relevance, land reported at historical costB. Consistency, land reported at historical costC. Matching, land is not depreciatedD. Gain, difference between historical cost and current market value for land used in operations 16. AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework. Which of the following statements is most true?  A. Land is reported as an asset on the balance sheet; assets are one element of financial