ACTG 313 Final Exam With
Complete Solution
Data - ANSWER facts collected, recorded, and stored in the system
Information - ANSWER Data converted into a meaningful and useful context
Example of data - ANSWER 2/22/14
ABC Company
123, 99, 3, 20, 60
Example of information - ANSWER best-selling product, best customer,
worst-selling product, worst customer
Decision Quality - ANSWER • Information helps us make better decisions.
• Too much information causing information overload can reduce decision
quality.
• Information Technology (IT) is used to help decision-makers more
effectively filter and condense information.
value of information - ANSWER when benefits exceed the costs of gathering,
maintaining, and storing data
information technology - ANSWER Useful to help decision-makers more
effectively filter and condense information.
What makes information useful? 14 characteristics - ANSWER 1. access
restricted
,2. accurate
3. available
4. reputable
5. complete
6. concise
7. consistent
8. current
9. objective
10. relevant
11. timely
12. useable
13. understandable
14. verifiable
Access Restricted - ANSWER limit access to authorized parties
accurate - ANSWER correct in all details; exact, free of errors
available - ANSWER ready for use, at hand
reputable - ANSWER perceived as true and credible
complete - ANSWER does not omit important aspects of the events or
activities it measures
concise - ANSWER clear, sufficient, brief, but comprehensive
,consistent - ANSWER presented in the same format over time
current - ANSWER up to the present date and time
objective - ANSWER unbiased; unprejudiced
relevant - ANSWER reduces uncertainty, improves decision making, or
confirms or corrects prior expectations
timely - ANSWER provided in time for decision makers to make decisions
useable - ANSWER easy to use for different task
understandable - ANSWER easily comprehended and interpreted
verifiable - ANSWER 2 independent, knowledgeable people produce the
same information
machine-readable format - ANSWER Data is most useful when it is in a
machine-readable format that can be read and processed by a computer
Example of machine-readable format - ANSWER XBRL
can improve characteristics that make info useful
Business Process - ANSWER Set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve
specific organizational goals
transaction processing - ANSWER using transaction data to create financial
statements
examples of give get exchange: rev, exp, production, payroll, financing cycle
- ANSWER Revenue cycle: give goods/service ----- get cash
expense cycle: get goods/service ----- give cash
, production cycle: give labor & materials --- get finished goods
payroll cycle: give cash ----- get labor
financing cycle: give cash ---- get cash
Accounting information systems (AIS) - ANSWER system that collects,
records, stores, and processes date in information used for decision makers
what is the output of AIS? - ANSWER information
What does AIS consist of? - ANSWER 1. people who use the system
2. processes
3. technology
4. controls to safeguard info
How does AIS add value? - ANSWER 1. improving quality and reducing costs
2. improve efficiency
3. improving decision making
Value Chain - ANSWER links together the different activities within the
organization that provide value to the customer
primary activities - ANSWER directly add value to customer
support activities - ANSWER enable primary activities to be efficient and
effective
supply chain - ANSWER Extended system that includes the organization's
value chain as well as its suppliers, distributors and customers
data processing cycle - ANSWER
Complete Solution
Data - ANSWER facts collected, recorded, and stored in the system
Information - ANSWER Data converted into a meaningful and useful context
Example of data - ANSWER 2/22/14
ABC Company
123, 99, 3, 20, 60
Example of information - ANSWER best-selling product, best customer,
worst-selling product, worst customer
Decision Quality - ANSWER • Information helps us make better decisions.
• Too much information causing information overload can reduce decision
quality.
• Information Technology (IT) is used to help decision-makers more
effectively filter and condense information.
value of information - ANSWER when benefits exceed the costs of gathering,
maintaining, and storing data
information technology - ANSWER Useful to help decision-makers more
effectively filter and condense information.
What makes information useful? 14 characteristics - ANSWER 1. access
restricted
,2. accurate
3. available
4. reputable
5. complete
6. concise
7. consistent
8. current
9. objective
10. relevant
11. timely
12. useable
13. understandable
14. verifiable
Access Restricted - ANSWER limit access to authorized parties
accurate - ANSWER correct in all details; exact, free of errors
available - ANSWER ready for use, at hand
reputable - ANSWER perceived as true and credible
complete - ANSWER does not omit important aspects of the events or
activities it measures
concise - ANSWER clear, sufficient, brief, but comprehensive
,consistent - ANSWER presented in the same format over time
current - ANSWER up to the present date and time
objective - ANSWER unbiased; unprejudiced
relevant - ANSWER reduces uncertainty, improves decision making, or
confirms or corrects prior expectations
timely - ANSWER provided in time for decision makers to make decisions
useable - ANSWER easy to use for different task
understandable - ANSWER easily comprehended and interpreted
verifiable - ANSWER 2 independent, knowledgeable people produce the
same information
machine-readable format - ANSWER Data is most useful when it is in a
machine-readable format that can be read and processed by a computer
Example of machine-readable format - ANSWER XBRL
can improve characteristics that make info useful
Business Process - ANSWER Set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve
specific organizational goals
transaction processing - ANSWER using transaction data to create financial
statements
examples of give get exchange: rev, exp, production, payroll, financing cycle
- ANSWER Revenue cycle: give goods/service ----- get cash
expense cycle: get goods/service ----- give cash
, production cycle: give labor & materials --- get finished goods
payroll cycle: give cash ----- get labor
financing cycle: give cash ---- get cash
Accounting information systems (AIS) - ANSWER system that collects,
records, stores, and processes date in information used for decision makers
what is the output of AIS? - ANSWER information
What does AIS consist of? - ANSWER 1. people who use the system
2. processes
3. technology
4. controls to safeguard info
How does AIS add value? - ANSWER 1. improving quality and reducing costs
2. improve efficiency
3. improving decision making
Value Chain - ANSWER links together the different activities within the
organization that provide value to the customer
primary activities - ANSWER directly add value to customer
support activities - ANSWER enable primary activities to be efficient and
effective
supply chain - ANSWER Extended system that includes the organization's
value chain as well as its suppliers, distributors and customers
data processing cycle - ANSWER
