ACCY 310 FINAL EXAM REVIEW UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Chapter 1
Answer:
Accounting Information Systems and Firm Value
Question:
2. Accountants as Business Analysts
Answer:
-Increasingly, the role of an accountant is to help address business opportunities.
-To address such a business opportunity, the accountants need to decide what
information is needed, then build an information system to gather the necessary
information and finally analyze that information to offer helpful advice to
management
Question:
3. Accounting Information Systems
Answer:
a system that records, processes, and reports on transactions to provide financial
and non-financial information to make decisions and have appropriate levels of
internal controls (security measures to protect sensitive data) for those
transactions.
Question:
4. Why is an AIS important?
Answer:
it provides information that companies are required to have and also information
that can be used to make important decisions
Question:
5. Why study AIS?
Answer:
- Its fundamental to accounting
,Question:
6. Accounting is an information providing activity so
accountants need to understand:
Answer:
- how the system that provides that information is designed, implemented, and
used
- how financial information is reported
- how information is used to make decisions
Question:
7. What can an AIS do?
Answer:
- ex: Starbucks: the number of hours worked by employees worldwide, the
amount of sales tax to be paid by one store
- ex: Walmart: tracks customers purchases by data and by store, reports
purchases to its key suppliers to help them establish demand for their products to
assist them in planning
Question:
8. AIS Starbucks Example:
Answer:
Input: Sales at Starbucks
Storage: databases of all sales at Starbucks
Processing: Queries of what sells best at night
Output: reports of what sells best at night
Question:
9. Relevance
Answer:
- Information capable of making a difference in a decision (feedback, predictive,
materiality)
Question:
10. Faithful Representation
Answer:
- Information produced accurately reflects the condition of the business
(complete, neutral, free from error)
, Question:
11. Data Vs Information
Answer:
- data are simply raw facts that describe an event and have little meaning on their
own
- information is defined as being data organized in a meaningful way to be useful
to the user. Data serves as an input
- ex: sales prices of a toy (data), subtracting COGS from sales to get GM would be
information
Question:
12. Information Overload
Answer:
- computers can process and organize a large amount of data
- too much information causes information overload
- decision making is hindered
Question:
13. Discretionary Vs Mandatory Information
Answer:
- Discretionary information is information that is not required by law (using activity
based costing system to determine the overhead costs associated with each
pound of chicken at Tyson Foods, managers must decide if the benefits of
discretionary information outweighs the cost of obtaining that information)
- Mandatory information is information that is required by law (Form 10-K, since it
is required managers may choose to minimize the costs of producing this
information, since it is required manager may choose to minimize the costs of
producing this information
Question:
14. Roles of Accountants in AIS
Answer:
- Designer: system analyst
- Implementer: database administrator
-User: record journal entries
-Evaluator: auditor
- Manager: controller or CFO
Question:
15. Certified Information Systems Auditor (CISA)
Answer:
Perform IT Audits
QUESTIONS AND CORRECT ANSWERS
Question:
1. Chapter 1
Answer:
Accounting Information Systems and Firm Value
Question:
2. Accountants as Business Analysts
Answer:
-Increasingly, the role of an accountant is to help address business opportunities.
-To address such a business opportunity, the accountants need to decide what
information is needed, then build an information system to gather the necessary
information and finally analyze that information to offer helpful advice to
management
Question:
3. Accounting Information Systems
Answer:
a system that records, processes, and reports on transactions to provide financial
and non-financial information to make decisions and have appropriate levels of
internal controls (security measures to protect sensitive data) for those
transactions.
Question:
4. Why is an AIS important?
Answer:
it provides information that companies are required to have and also information
that can be used to make important decisions
Question:
5. Why study AIS?
Answer:
- Its fundamental to accounting
,Question:
6. Accounting is an information providing activity so
accountants need to understand:
Answer:
- how the system that provides that information is designed, implemented, and
used
- how financial information is reported
- how information is used to make decisions
Question:
7. What can an AIS do?
Answer:
- ex: Starbucks: the number of hours worked by employees worldwide, the
amount of sales tax to be paid by one store
- ex: Walmart: tracks customers purchases by data and by store, reports
purchases to its key suppliers to help them establish demand for their products to
assist them in planning
Question:
8. AIS Starbucks Example:
Answer:
Input: Sales at Starbucks
Storage: databases of all sales at Starbucks
Processing: Queries of what sells best at night
Output: reports of what sells best at night
Question:
9. Relevance
Answer:
- Information capable of making a difference in a decision (feedback, predictive,
materiality)
Question:
10. Faithful Representation
Answer:
- Information produced accurately reflects the condition of the business
(complete, neutral, free from error)
, Question:
11. Data Vs Information
Answer:
- data are simply raw facts that describe an event and have little meaning on their
own
- information is defined as being data organized in a meaningful way to be useful
to the user. Data serves as an input
- ex: sales prices of a toy (data), subtracting COGS from sales to get GM would be
information
Question:
12. Information Overload
Answer:
- computers can process and organize a large amount of data
- too much information causes information overload
- decision making is hindered
Question:
13. Discretionary Vs Mandatory Information
Answer:
- Discretionary information is information that is not required by law (using activity
based costing system to determine the overhead costs associated with each
pound of chicken at Tyson Foods, managers must decide if the benefits of
discretionary information outweighs the cost of obtaining that information)
- Mandatory information is information that is required by law (Form 10-K, since it
is required managers may choose to minimize the costs of producing this
information, since it is required manager may choose to minimize the costs of
producing this information
Question:
14. Roles of Accountants in AIS
Answer:
- Designer: system analyst
- Implementer: database administrator
-User: record journal entries
-Evaluator: auditor
- Manager: controller or CFO
Question:
15. Certified Information Systems Auditor (CISA)
Answer:
Perform IT Audits
