ACC 406 FINAL EXAM QUESTIONS & ANSWERS
Accounting information system (AIS) - Answer -a system that collects, records, stores,
and processes business data to produce information for decision makers
Decision makers - Answer -internal users - management, employees
External users - stockholders, creditors, customers, government, financial institutions
The accounting process - Answer -1. Capture transaction data on source documents
2. Journalize transactions
3. Post transactions to ledger
4. Prepare trial balance
5. Journalize and post adjusting entries
6. Prepare adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare post-closing trial balance
Problems with the traditional view of accounting - Answer -- transactions-oriented as
opposed to events-oriented
- narrow focus on financial data
- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
2 forms of computerized bookkeeping - Answer -1. COBOL (Common Business-
Oriented Language) - custom built for each firm
2. Accounting software package - off the shelf
The database approach - Answer -store all business data in one place, one time, in its
most disaggregated form; events-oriented
Enterprise wide repository - Answer -storage of all entity and event data in a single
integrated repository
ERP system - Answer -span the entire enterprise and address all of the enterprise's
resources; support cross-functional integration
3-tier architecture of ERP system - Answer -1. Presentation layer - what users see
2. Application layer - number-crunching
3. Database layer - where raw data is inputted
Data - Answer -raw, unprocessed facts, that are useless without further processing
, Information - Answer -data made meaningful
Characteristics of useful information - Answer -- relevant
- reliable
- complete
- timely
- understandable
- verifiable
Bit - Answer -binary digit that can take a value of 0 (turned off) or 1 (turned on)
Byte - Answer -a group of bits (usually 8)
Field - Answer -a group of related bytes
Records - Answer -a group of related fields
File - Answer -a group of logical records
Database - Answer -a collection of logically related files
Numeric field - Answer -used to store integers and real numbers
Text (alphanumeric) field - Answer -can store any keyboard character
Currency field - Answer -used for monetary values
Date/time field - Answer -can store date only, time only, or both date and time
Boolean field - Answer -can have only 1 of 2 possible values (i.e. True/false)
Counter field - Answer -automatically incremented by 1 every time a new record is
added
Blobs - Answer -"binary large objects"; used to store pictures, graphics and other such
multimedia types
Primary key - Answer -used to uniquely identify records in a file; designated as the
search criterion
Candidate key - Answer -any unique identifier of records in a file (i.e. SSN)
Composite/concatenated key - Answer -2 or more fields that uniquely identify records in
a file
Non-key attribute - Answer -any field that is not a primary key field
Accounting information system (AIS) - Answer -a system that collects, records, stores,
and processes business data to produce information for decision makers
Decision makers - Answer -internal users - management, employees
External users - stockholders, creditors, customers, government, financial institutions
The accounting process - Answer -1. Capture transaction data on source documents
2. Journalize transactions
3. Post transactions to ledger
4. Prepare trial balance
5. Journalize and post adjusting entries
6. Prepare adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare post-closing trial balance
Problems with the traditional view of accounting - Answer -- transactions-oriented as
opposed to events-oriented
- narrow focus on financial data
- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
2 forms of computerized bookkeeping - Answer -1. COBOL (Common Business-
Oriented Language) - custom built for each firm
2. Accounting software package - off the shelf
The database approach - Answer -store all business data in one place, one time, in its
most disaggregated form; events-oriented
Enterprise wide repository - Answer -storage of all entity and event data in a single
integrated repository
ERP system - Answer -span the entire enterprise and address all of the enterprise's
resources; support cross-functional integration
3-tier architecture of ERP system - Answer -1. Presentation layer - what users see
2. Application layer - number-crunching
3. Database layer - where raw data is inputted
Data - Answer -raw, unprocessed facts, that are useless without further processing
, Information - Answer -data made meaningful
Characteristics of useful information - Answer -- relevant
- reliable
- complete
- timely
- understandable
- verifiable
Bit - Answer -binary digit that can take a value of 0 (turned off) or 1 (turned on)
Byte - Answer -a group of bits (usually 8)
Field - Answer -a group of related bytes
Records - Answer -a group of related fields
File - Answer -a group of logical records
Database - Answer -a collection of logically related files
Numeric field - Answer -used to store integers and real numbers
Text (alphanumeric) field - Answer -can store any keyboard character
Currency field - Answer -used for monetary values
Date/time field - Answer -can store date only, time only, or both date and time
Boolean field - Answer -can have only 1 of 2 possible values (i.e. True/false)
Counter field - Answer -automatically incremented by 1 every time a new record is
added
Blobs - Answer -"binary large objects"; used to store pictures, graphics and other such
multimedia types
Primary key - Answer -used to uniquely identify records in a file; designated as the
search criterion
Candidate key - Answer -any unique identifier of records in a file (i.e. SSN)
Composite/concatenated key - Answer -2 or more fields that uniquely identify records in
a file
Non-key attribute - Answer -any field that is not a primary key field
