Assessment Task 1

Matching. Match the description listed in the right column with the information
characteristic listed in the left column.
1. Relevant – F. An accounts receivable aging report is used in credit-granting
decisions.

2. Reliable – E. A report was checked by three different people for accuracy.

3. Complete – D. An accounts receivable aging report included all customer

accounts.

4. Timely – G. An accounts receivable aging report was received before the credit
manager had to make a decision whether to extend credit to a customer.

5. Understandable – A. The report was carefully designed so that the data

contained in the report became information to the reader.

6. Verifiable – C. The data in a report was checked by two clerks working

independently.

7. Accessible – B. The manager was working one weekend and needed to find
some information about production requests for a certain customer. He was able
to find the report on the company’s network.
Multiple Choice.
8. Which of the following statements below shows the contrast between data and
information?
a. Data is the output an AIS.
b. Information is the primary output of AIS.
c. Data is more useful in decision making than information.
d. Data and information are the same.

9. Information is best described as

a. Raw facts about transactions.
b. Data that has been organized and processed so that it is meaningful to its
user.
c. Facts that are useful when processed in a timely manner
d. The same thing as data.

10. 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

11. An accounting information system (AIS) processes _______ to provide users

with ______.
a. data; information
b. data; transactions
c. information; data
d. data; benefits

12. Which of the following is a primary activity in the value chain?

a. Purchasing
b. Accounting
c. Post-sales service
d. Human resource management

13. Which of the following is NOT a means by which information improves decision
making?
a. increases information overload
b. reduces uncertainty
c. provides feedback about the effectiveness of prior decisions
d. identifies situations requiring management action

14. In the value chain concept, upgrading IT is considered what kind of activity?
a. Primary activity
b. Support activity
c. Service activity
d. Structured activity

15. In which cycle does a company ship goods to customers?

a. production cycle
b. financing cycle
c. revenue cycle
d. expenditure cycle