ACTG 474 – MIDTERM STUDY GUIDE
Data - Answers - Facts collected, recorded, and stored in the system.
Information - Answers - Organize the data with a context.
Information Overload - Answers - Too much information can reduce decision quality.
Information Technology (IT) - Answers - Help decision makers more effectively filter and
condense information.
Value of Information - Answers - Benefit - Cost
Relevant - Answers - Information needed to make a decision.
Reliable - Answers - Information free from bias.
Complete - Answers - Does not omit important aspects.
Timely - Answers - Information needs to be provided in time to make the decision.
Understandable - Answers - Presented in a meaning manner.
Verifiable - Answers - Two independent people can produce the same conclusion.
Accessible - Answers - Available when needed.
Business Process - Answers - Activities and tasks performed by people and/or
machines to achieve an organizational goal.
Transactions - Answers - Exchange of goods and services between two entities that can
be measured by economic terms. (Give-Get Exchange)
Transaction Processing - Answers - Create financial statements.
Flow of Information - Answers - Give-get exchange grouped into business processes or
transaction cycles.
Accounting Information System at S&S - Answers - Vendors, customers, investors,
employees, creditors, management, banks, and government agencies.
Revenue or Expenditure Cycle - Answers - Goods or services for cash.
, Production Cycle - Answers - Labor or raw materials for finished goods.
Payroll Cycle - Answers - Cash for labor.
Financing Cycle - Answers - Cash for cash.
Accounting Information System - Answers - Collects, records, stores, and processes
data to produce information for decision makers.
Accounting Information System - Added Value - Answers - Improve quality, efficiency,
internal control structure, and decision making. Reduce costs. Share knowledge.
Value Chain - Answers - Links together different activities within an organization that
provide value to the customer.
Supply Chain - Answers - Extended system which includes the value chain, suppliers,
distributors, and customers.
Primary Activities - Answers - Inbound logistics, operations, outbound logistics,
marketing & sales, service.
Support Activities - Answers - Firm infrastructure, human resources, technology,
purchasing.
Data Processing Cycle - Answers - Data Input, Data Processing (Data Storage),
Information Output.
Data Input - Answers - Capture transaction, accurate & complete, and company policies
are followed.
Data Capture - Answers - Activity of interest, resources affected, and participants.
Source Documents - Answers - Paper source and turnaround documents. (Source data
automation)
Data Storage - Answers - Chart of accounts, transaction journals, subsidiary ledgers,
and general ledger.
Coding Techniques - Answers - Sequence, block, group, and mnemonic codes.
Sequence Codes - Answers - Numbered consecutively.
Block Codes - Answers - Numbers reserved for specific categories.
Group Codes - Answers - Two or more subgroups of digits that are used to code an
item.
Data - Answers - Facts collected, recorded, and stored in the system.
Information - Answers - Organize the data with a context.
Information Overload - Answers - Too much information can reduce decision quality.
Information Technology (IT) - Answers - Help decision makers more effectively filter and
condense information.
Value of Information - Answers - Benefit - Cost
Relevant - Answers - Information needed to make a decision.
Reliable - Answers - Information free from bias.
Complete - Answers - Does not omit important aspects.
Timely - Answers - Information needs to be provided in time to make the decision.
Understandable - Answers - Presented in a meaning manner.
Verifiable - Answers - Two independent people can produce the same conclusion.
Accessible - Answers - Available when needed.
Business Process - Answers - Activities and tasks performed by people and/or
machines to achieve an organizational goal.
Transactions - Answers - Exchange of goods and services between two entities that can
be measured by economic terms. (Give-Get Exchange)
Transaction Processing - Answers - Create financial statements.
Flow of Information - Answers - Give-get exchange grouped into business processes or
transaction cycles.
Accounting Information System at S&S - Answers - Vendors, customers, investors,
employees, creditors, management, banks, and government agencies.
Revenue or Expenditure Cycle - Answers - Goods or services for cash.
, Production Cycle - Answers - Labor or raw materials for finished goods.
Payroll Cycle - Answers - Cash for labor.
Financing Cycle - Answers - Cash for cash.
Accounting Information System - Answers - Collects, records, stores, and processes
data to produce information for decision makers.
Accounting Information System - Added Value - Answers - Improve quality, efficiency,
internal control structure, and decision making. Reduce costs. Share knowledge.
Value Chain - Answers - Links together different activities within an organization that
provide value to the customer.
Supply Chain - Answers - Extended system which includes the value chain, suppliers,
distributors, and customers.
Primary Activities - Answers - Inbound logistics, operations, outbound logistics,
marketing & sales, service.
Support Activities - Answers - Firm infrastructure, human resources, technology,
purchasing.
Data Processing Cycle - Answers - Data Input, Data Processing (Data Storage),
Information Output.
Data Input - Answers - Capture transaction, accurate & complete, and company policies
are followed.
Data Capture - Answers - Activity of interest, resources affected, and participants.
Source Documents - Answers - Paper source and turnaround documents. (Source data
automation)
Data Storage - Answers - Chart of accounts, transaction journals, subsidiary ledgers,
and general ledger.
Coding Techniques - Answers - Sequence, block, group, and mnemonic codes.
Sequence Codes - Answers - Numbered consecutively.
Block Codes - Answers - Numbers reserved for specific categories.
Group Codes - Answers - Two or more subgroups of digits that are used to code an
item.
