ACTG 313 LATEST 2026 QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔Data destination - ✔✔the entity that receives data produced by a system
✔✔Processess - ✔✔Actions that transform data into other data or information
✔✔data store - ✔✔the place or medium where system data is stored
✔✔Basic Expenditure Cycle Activities - ✔✔1. Order materials, supplies, and services
2. Receive materials, supplies, and services
3. Approve supplier (vendor) invoice
4. Cash disbursement
✔✔steps in ordering goods or service processing steps - ✔✔1. stockouts and excess
inventory
2. purchasing items not needed
3. purchasing items at inflated prices
4. purchasing goods of poor quality
5. unreliable suppliers
6. purchasing from unauthorized suppliers
7. kickbacks
✔✔Receiving process - ✔✔Goods arrive
Verify goods ordered against the purchase order (what, how much, quality)
Source document: receiving report
✔✔inventory managements systems - ✔✔EOQ traditional: economic ordering quantity
MRP: material requirement planning
JIT: just in time
VMI: vendor managed inventory
✔✔EOQ (Economic Ordering Quantity) - ✔✔calculate optimal order size to minimize
sum of: ordering costs, carrying costs, stockout costs
✔✔MRP (Material requirement planning) - ✔✔Use detailed sales forecast and
engineering specs. Production scheduling based on forecasted sales
✔✔MRP Benefit - ✔✔reduces uncertainty and inventory levels (i.e., carrying costs)
✔✔JIT (just in time) - ✔✔Production scheduling based on customer demand. No
finished goods inventory
,✔✔Approval of cash disbursements steps - ✔✔1. match supplier invoice to receiving
report and purchase order
2. approve supplier invoice for payment
source document: voucher
3. pay vendor
✔✔What 3 documents comprise a voucher? - ✔✔supplier invoice
receiving report
purchase order
✔✔What are the threats to cash disbursements? - ✔✔1. failure to take discounts
2. pay for items not received
3. duplicate payments
4. theft of cash
5. check alteration
6. cash flow problems
✔✔reconcile bank accounts - ✔✔balance per bank
subtract: checks outstanding
Add: deposits
_______________________
balance per books
✔✔Petty cash fund - ✔✔Used for small expenses to quickly reimburse employees.
Receipts are kept to track the cash balance in the fund
✔✔what are the threats throughout the general ledger and reporting cycle? - ✔✔1.
inaccurate or invalid general ledger
2. unauthorized disclosure of financial statements
3. loss or destruction of data
✔✔deferrals - ✔✔Made at end of accounting period to reflect exchange of cash prior to
performance of related event (e.g., rent)
✔✔estimates - ✔✔portion of expenses expected to occur over a number of accounting
periods
✔✔What are the threats regarding posting adjusting entries? - ✔✔1. inaccurate
adjusting entries
2. unauthorized adjusting entries
✔✔What are the threats regarding preparing financial statements and producing
managerial reports? - ✔✔1. inaccurate financial statements
2. fraudulent financial reporting
3. poorly designed reports and graphs
, ✔✔What do auditors give in publicly traded companies? - ✔✔opinion on statements and
internal control
✔✔XBRL - ✔✔Extensible Business Reporting Language
✔✔Extensible Business Reporting Language (XBRL) - ✔✔Specifically used for
communicating financial data (required by the Securities and Exchange Commission
(SEC) if public company)
✔✔Managerial reports and evaluating performance - ✔✔Responsibility accounting
Flexible budget
Balanced scorecard
Graphs
✔✔responsibility accounting - ✔✔reporting results based upon managerial
responsibilities in an organization
cost centers
✔✔flexible budget - ✔✔Budget formula based upon level of activity (e.g., production
levels)
✔✔What documentation/visualization techniques do Flowcharts and DFD have in
common? - ✔✔see controls better
data storage
✔✔what documentation/visualization techniques do Flowcharts and BPDs have in
common? - ✔✔diamond is decision step
read top to bottom, left to right
✔✔Key decisions expenditure cycle - ✔✔optimal inventory level
which suppliers provide the best quality at the best price
how to improve efficiency and accuracy of logistics using IT
taking advantage of vendor discounts
maximize cash flow
✔✔Flow chart guidelines - ✔✔1. understand the system you are trying to represent
2. ID business processes, documents, data flows, and data processing procedures
3. organize so that it reads from top to bottom and left to right
4. clearly label all symbols
5. use page connectors (if they cannot fit on 1 page)
✔✔Data flow diagrams (DFD) - ✔✔A graphical description of data sources, data flows,
transformation processes, data storage, and data destinations
GUARANTEE A+
✔✔Data destination - ✔✔the entity that receives data produced by a system
✔✔Processess - ✔✔Actions that transform data into other data or information
✔✔data store - ✔✔the place or medium where system data is stored
✔✔Basic Expenditure Cycle Activities - ✔✔1. Order materials, supplies, and services
2. Receive materials, supplies, and services
3. Approve supplier (vendor) invoice
4. Cash disbursement
✔✔steps in ordering goods or service processing steps - ✔✔1. stockouts and excess
inventory
2. purchasing items not needed
3. purchasing items at inflated prices
4. purchasing goods of poor quality
5. unreliable suppliers
6. purchasing from unauthorized suppliers
7. kickbacks
✔✔Receiving process - ✔✔Goods arrive
Verify goods ordered against the purchase order (what, how much, quality)
Source document: receiving report
✔✔inventory managements systems - ✔✔EOQ traditional: economic ordering quantity
MRP: material requirement planning
JIT: just in time
VMI: vendor managed inventory
✔✔EOQ (Economic Ordering Quantity) - ✔✔calculate optimal order size to minimize
sum of: ordering costs, carrying costs, stockout costs
✔✔MRP (Material requirement planning) - ✔✔Use detailed sales forecast and
engineering specs. Production scheduling based on forecasted sales
✔✔MRP Benefit - ✔✔reduces uncertainty and inventory levels (i.e., carrying costs)
✔✔JIT (just in time) - ✔✔Production scheduling based on customer demand. No
finished goods inventory
,✔✔Approval of cash disbursements steps - ✔✔1. match supplier invoice to receiving
report and purchase order
2. approve supplier invoice for payment
source document: voucher
3. pay vendor
✔✔What 3 documents comprise a voucher? - ✔✔supplier invoice
receiving report
purchase order
✔✔What are the threats to cash disbursements? - ✔✔1. failure to take discounts
2. pay for items not received
3. duplicate payments
4. theft of cash
5. check alteration
6. cash flow problems
✔✔reconcile bank accounts - ✔✔balance per bank
subtract: checks outstanding
Add: deposits
_______________________
balance per books
✔✔Petty cash fund - ✔✔Used for small expenses to quickly reimburse employees.
Receipts are kept to track the cash balance in the fund
✔✔what are the threats throughout the general ledger and reporting cycle? - ✔✔1.
inaccurate or invalid general ledger
2. unauthorized disclosure of financial statements
3. loss or destruction of data
✔✔deferrals - ✔✔Made at end of accounting period to reflect exchange of cash prior to
performance of related event (e.g., rent)
✔✔estimates - ✔✔portion of expenses expected to occur over a number of accounting
periods
✔✔What are the threats regarding posting adjusting entries? - ✔✔1. inaccurate
adjusting entries
2. unauthorized adjusting entries
✔✔What are the threats regarding preparing financial statements and producing
managerial reports? - ✔✔1. inaccurate financial statements
2. fraudulent financial reporting
3. poorly designed reports and graphs
, ✔✔What do auditors give in publicly traded companies? - ✔✔opinion on statements and
internal control
✔✔XBRL - ✔✔Extensible Business Reporting Language
✔✔Extensible Business Reporting Language (XBRL) - ✔✔Specifically used for
communicating financial data (required by the Securities and Exchange Commission
(SEC) if public company)
✔✔Managerial reports and evaluating performance - ✔✔Responsibility accounting
Flexible budget
Balanced scorecard
Graphs
✔✔responsibility accounting - ✔✔reporting results based upon managerial
responsibilities in an organization
cost centers
✔✔flexible budget - ✔✔Budget formula based upon level of activity (e.g., production
levels)
✔✔What documentation/visualization techniques do Flowcharts and DFD have in
common? - ✔✔see controls better
data storage
✔✔what documentation/visualization techniques do Flowcharts and BPDs have in
common? - ✔✔diamond is decision step
read top to bottom, left to right
✔✔Key decisions expenditure cycle - ✔✔optimal inventory level
which suppliers provide the best quality at the best price
how to improve efficiency and accuracy of logistics using IT
taking advantage of vendor discounts
maximize cash flow
✔✔Flow chart guidelines - ✔✔1. understand the system you are trying to represent
2. ID business processes, documents, data flows, and data processing procedures
3. organize so that it reads from top to bottom and left to right
4. clearly label all symbols
5. use page connectors (if they cannot fit on 1 page)
✔✔Data flow diagrams (DFD) - ✔✔A graphical description of data sources, data flows,
transformation processes, data storage, and data destinations
