ACCY 310 EXAM 1 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Accounting information system (AIS)
Answer:
defined as a system that records, processes, and reports on transactions to
provide financial and nonfinancial information to make decisions and have
appropriate levels of internal controls for those transactions
Question:
2. System
Answer:
an assemblage or combination of things or parts forming a complex or unitary
whole. Example: interstate highway system.
Question:
3. Subsystem
Answer:
A part of a system. For example I-55 is part of the interstate highway system
Question:
4. Attributes of Useful Information
Answer:
To be most useful to decision makers, information from an AIS must be both
relevant and reliable and have both 1. Relevance and 2. Reliability
Question:
5. a. Predictive value (helps with forecasting the future)
b. Feedback value (corrects or confirms what and been predicted in the past)
c. Timeliness (available when needed or in time to have an impact on a decision.)
Answer:
Relevance
Question:
6. a. Verifiable (can be confirmed by an independent party)
b. Representational faithfulness (reports what actually happened)
c. Neutrality (information is not biased)
Answer:
Reliability
,Question:
7. Data
Answer:
Raw facts that describe the characteristics of an event that, in isolation, have little
meaning
Question:
8. Information
Answer:
data being organized in a meaningful way to be useful to the user. Often
processed and then combined with the appropriate context. Required for
decision makers to make decisions.
Question:
9. Information Overload
Answer:
The difficulty a person faces in understanding a problem and making a decision as
a consequence of too much information. Therefore, an AIS must be carefully
designed to provide that information that is most useful without overwhelming the
user.
Question:
10. Information Value Chain
Answer:
The overall transformation from a business need and business event (like each
sale of a US flag) to the collection of data and information to an ultimate decision
Business Need/ Event -> Data-> Information -> Knowledge -> Decision
Question:
11. Discretionary Information
Answer:
Managerial accounting information is generally produced for internal information
purposes. There is no law requiring that it be provided to management.
Management simply decides what information they need to track and build an
information system to track it.
Question:
12. Mandatory Information
Answer:
Much of the financial and tax accounting information is produced for external
information purposes. Is usually produced at the lowest cost possible to comply
with the laws of the regulators.
, Question:
13. Business analysts
Answer:
Accountants have a role as ____________. That is, they gather information to solve
business problems or address business opportunities.
Question:
14. User
Answer:
To recognize the needed competencies for accountants with respect to
information technology, it is important to recognize the potential role of
accountants in accounting information systems, including:
The accountant as a ________ of accounting information systems - whether it be
inputting journal entries into an accounting system, using a financial spreadsheet
to calculate the costs of a product, or using anti-virus.
Question:
15. Manager
Answer:
The accountant as a ___________ of accounting information systems.
Question:
16. Designer
Answer:
The accountant as the ___________ of accounting information systems.
Question:
17. Evaluator
Answer:
The accountant as ____________ of accounting information systems (IT auditor,
assessor of internal controls, tax advisor, general auditor, consultant)
Question:
18. Business Value
Answer:
All items, events, and interactions that determine the financial health and/or well-
being of the firm. IT may come from suppliers, customers, or employees or even
from information systems. It does not necessarily need to be determined by stock
price or net income.
AND CORRECT ANSWERS
Question:
1. Accounting information system (AIS)
Answer:
defined as a system that records, processes, and reports on transactions to
provide financial and nonfinancial information to make decisions and have
appropriate levels of internal controls for those transactions
Question:
2. System
Answer:
an assemblage or combination of things or parts forming a complex or unitary
whole. Example: interstate highway system.
Question:
3. Subsystem
Answer:
A part of a system. For example I-55 is part of the interstate highway system
Question:
4. Attributes of Useful Information
Answer:
To be most useful to decision makers, information from an AIS must be both
relevant and reliable and have both 1. Relevance and 2. Reliability
Question:
5. a. Predictive value (helps with forecasting the future)
b. Feedback value (corrects or confirms what and been predicted in the past)
c. Timeliness (available when needed or in time to have an impact on a decision.)
Answer:
Relevance
Question:
6. a. Verifiable (can be confirmed by an independent party)
b. Representational faithfulness (reports what actually happened)
c. Neutrality (information is not biased)
Answer:
Reliability
,Question:
7. Data
Answer:
Raw facts that describe the characteristics of an event that, in isolation, have little
meaning
Question:
8. Information
Answer:
data being organized in a meaningful way to be useful to the user. Often
processed and then combined with the appropriate context. Required for
decision makers to make decisions.
Question:
9. Information Overload
Answer:
The difficulty a person faces in understanding a problem and making a decision as
a consequence of too much information. Therefore, an AIS must be carefully
designed to provide that information that is most useful without overwhelming the
user.
Question:
10. Information Value Chain
Answer:
The overall transformation from a business need and business event (like each
sale of a US flag) to the collection of data and information to an ultimate decision
Business Need/ Event -> Data-> Information -> Knowledge -> Decision
Question:
11. Discretionary Information
Answer:
Managerial accounting information is generally produced for internal information
purposes. There is no law requiring that it be provided to management.
Management simply decides what information they need to track and build an
information system to track it.
Question:
12. Mandatory Information
Answer:
Much of the financial and tax accounting information is produced for external
information purposes. Is usually produced at the lowest cost possible to comply
with the laws of the regulators.
, Question:
13. Business analysts
Answer:
Accountants have a role as ____________. That is, they gather information to solve
business problems or address business opportunities.
Question:
14. User
Answer:
To recognize the needed competencies for accountants with respect to
information technology, it is important to recognize the potential role of
accountants in accounting information systems, including:
The accountant as a ________ of accounting information systems - whether it be
inputting journal entries into an accounting system, using a financial spreadsheet
to calculate the costs of a product, or using anti-virus.
Question:
15. Manager
Answer:
The accountant as a ___________ of accounting information systems.
Question:
16. Designer
Answer:
The accountant as the ___________ of accounting information systems.
Question:
17. Evaluator
Answer:
The accountant as ____________ of accounting information systems (IT auditor,
assessor of internal controls, tax advisor, general auditor, consultant)
Question:
18. Business Value
Answer:
All items, events, and interactions that determine the financial health and/or well-
being of the firm. IT may come from suppliers, customers, or employees or even
from information systems. It does not necessarily need to be determined by stock
price or net income.
