ACG 3401 FINAL EXAM STUDY GUIDE
2025/2026 COMPLETE QUESTIONS BANK
AND CORRECT DETAILED ANSWERS WITH
RATIONALES || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. The sequence of components in the functional model of an information
system is: - ANSWER ✓ Input, Processing, Output, Users
2. Historically, the relationship between an information system and an
accounting information system has been: - ANSWER ✓ he AIS is a part of
the IS
3. The text takes the following view of the relationship between an IS and an
AIS: - ANSWER ✓ the IS and the AIS are one in the same
4. A man-made system that generally consists of an integrated set of computer-
based components and manual components established to collect, store, and
manage data and to provide output information to users - ANSWER ✓
information system
5. According to the ____, one of the responsibilities of accountants is to assess
financial operations and make best-practices recommendations to
management. - ANSWER ✓ Occupational Outlook Handbook
6. A man-made system consisting of people, equipment, organization, policies
and procedures with the objective of accomplishing the work of the
organization. - ANSWER ✓ operations process
7. A man-made system consisting of people, authority, organization, policies
and procedures whose objective is to accomplish the work of planning and
, controlling the operations of the organization. - ANSWER ✓ management
process
8. What is DATA? - ANSWER ✓ These are facts in raw form
9. INFORMATION SYSTEM (IS OR MIS) - ANSWER ✓ This is a man-made
system that generally consists of an integrated set of computer-based
components and manual components established to collect, store, and
manage data and to provide output information to users
10.What is UNDERSTANDABILITY - ANSWER ✓ The quality of
information that lets reasonably informed users see its significance.
11.What is VERIFIABILITY - ANSWER ✓ This is the ability of more than
one individual to come to the same measurement.
12.What is a STRUCTURED DECISION - ANSWER ✓ This is the type of
decision for which all three decision phases (intelligence, design, choice) are
relatively routine or repetitive.
13.What is ENTERPRISE APPLICATION INTEGRATION (EAI)? -
ANSWER ✓ This is the technology that can connect together ERP systems
and third party add-on modules.
14.What is a CHARACTER - ANSWER ✓ This is a basic unit of data.
15.What is a DATA RECORD - ANSWER ✓ This is a collection of related
data fields.
16.What is a BUSINESS EVENT - ANSWER ✓ These include any change in
the state of an enterprise, such as creating a new employee record,
submitting a purchase order to a vendor, delivering goods to the shipping
department, and earning interest on an investment.
17.APPLICATION PROGRAM INTERFACE (API)? - ANSWER ✓ This is a
means for connecting to a system or application provided by the application
developer
,18.What is ELECTRONIC MAIL - ANSWER ✓ This is the electronic
transmission of nonstandardized messages between two individuals.
19.What is a VALUE-ADDED NETWORK (VAN)? - ANSWER ✓ This is a
service that acts as the EDI "post office."
20.Fundamental Qualities - ANSWER ✓ Relevance (Predictive value,
confirmatory value, materiality) and Faithful Representation (completeness,
neutrality, free from error)
21.Enhancing Qualities - ANSWER ✓ 1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
22.Accounting Information System (AIS) - ANSWER ✓ A system that collects,
records, stores, and processes data to produce information for decision-
makers.
23.turnaround documents - ANSWER ✓ records of company data sent to an
external party and then returned to the system as input
24.Accurate - ANSWER ✓ Correct data
25.Complete - ANSWER ✓ All transactions recorded once.
26.Valid - ANSWER ✓ Transactions are approved, verified, and authorized.
27.Attribute - ANSWER ✓ Characteristics of an entity (columns in a database).
28.Batch Processing - ANSWER ✓ updating done periodically, such as daily
29.Online, Real-Time Processing - ANSWER ✓ the computer system processes
data immediately after capture and provides updated information to users on
a timely basis
30.Segregation of Duties - ANSWER ✓ 1. Authorization of Transactions 2.
Record Keeping 3. Custody of Assets 4. Reconciliation
, 31.Fraud Triangle - ANSWER ✓ Opportunity, pressure, rationalization
32.COSO Framework Components - ANSWER ✓ 1. Control Environment 2.
Risk Assessment 3. Control Activities 4. Information/Communication 5.
Monitoring Activities
33.COSO Framework Objectives - ANSWER ✓ operations, reporting,
compliance
34.Vouching - ANSWER ✓ end to start
35.Tracing - ANSWER ✓ start to end
36.XBRL - ANSWER ✓ Extensible Business Reporting Language,
comparability between companies
37.SOX Section 302 - ANSWER ✓ Key company officials (CEO and CFO)
must certify the financial statements.
38.SOX Section 404 - ANSWER ✓ requires management to assess internal
control effectiveness
39.In real world the 2 pieces needed for bank reconciliation : - ANSWER ✓
cash receipts journal and last month's bank reconciliation (to check for any
outstanding checks)
40.Outstanding Checks - ANSWER ✓ Checks issued but not yet presented to
the bank for payment.
41.Principles of Benford's Law - ANSWER ✓ in naturally occurring data set
certain leading digits/numbers appear more frequently than others.
42.example of naturally occurring data sets - ANSWER ✓ Number of twitter
followers, or expense claims
43.Benford's Law does work for : - ANSWER ✓ Things that are totally random
and things with inherent constraints such as maximums or minimums
2025/2026 COMPLETE QUESTIONS BANK
AND CORRECT DETAILED ANSWERS WITH
RATIONALES || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. The sequence of components in the functional model of an information
system is: - ANSWER ✓ Input, Processing, Output, Users
2. Historically, the relationship between an information system and an
accounting information system has been: - ANSWER ✓ he AIS is a part of
the IS
3. The text takes the following view of the relationship between an IS and an
AIS: - ANSWER ✓ the IS and the AIS are one in the same
4. A man-made system that generally consists of an integrated set of computer-
based components and manual components established to collect, store, and
manage data and to provide output information to users - ANSWER ✓
information system
5. According to the ____, one of the responsibilities of accountants is to assess
financial operations and make best-practices recommendations to
management. - ANSWER ✓ Occupational Outlook Handbook
6. A man-made system consisting of people, equipment, organization, policies
and procedures with the objective of accomplishing the work of the
organization. - ANSWER ✓ operations process
7. A man-made system consisting of people, authority, organization, policies
and procedures whose objective is to accomplish the work of planning and
, controlling the operations of the organization. - ANSWER ✓ management
process
8. What is DATA? - ANSWER ✓ These are facts in raw form
9. INFORMATION SYSTEM (IS OR MIS) - ANSWER ✓ This is a man-made
system that generally consists of an integrated set of computer-based
components and manual components established to collect, store, and
manage data and to provide output information to users
10.What is UNDERSTANDABILITY - ANSWER ✓ The quality of
information that lets reasonably informed users see its significance.
11.What is VERIFIABILITY - ANSWER ✓ This is the ability of more than
one individual to come to the same measurement.
12.What is a STRUCTURED DECISION - ANSWER ✓ This is the type of
decision for which all three decision phases (intelligence, design, choice) are
relatively routine or repetitive.
13.What is ENTERPRISE APPLICATION INTEGRATION (EAI)? -
ANSWER ✓ This is the technology that can connect together ERP systems
and third party add-on modules.
14.What is a CHARACTER - ANSWER ✓ This is a basic unit of data.
15.What is a DATA RECORD - ANSWER ✓ This is a collection of related
data fields.
16.What is a BUSINESS EVENT - ANSWER ✓ These include any change in
the state of an enterprise, such as creating a new employee record,
submitting a purchase order to a vendor, delivering goods to the shipping
department, and earning interest on an investment.
17.APPLICATION PROGRAM INTERFACE (API)? - ANSWER ✓ This is a
means for connecting to a system or application provided by the application
developer
,18.What is ELECTRONIC MAIL - ANSWER ✓ This is the electronic
transmission of nonstandardized messages between two individuals.
19.What is a VALUE-ADDED NETWORK (VAN)? - ANSWER ✓ This is a
service that acts as the EDI "post office."
20.Fundamental Qualities - ANSWER ✓ Relevance (Predictive value,
confirmatory value, materiality) and Faithful Representation (completeness,
neutrality, free from error)
21.Enhancing Qualities - ANSWER ✓ 1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
22.Accounting Information System (AIS) - ANSWER ✓ A system that collects,
records, stores, and processes data to produce information for decision-
makers.
23.turnaround documents - ANSWER ✓ records of company data sent to an
external party and then returned to the system as input
24.Accurate - ANSWER ✓ Correct data
25.Complete - ANSWER ✓ All transactions recorded once.
26.Valid - ANSWER ✓ Transactions are approved, verified, and authorized.
27.Attribute - ANSWER ✓ Characteristics of an entity (columns in a database).
28.Batch Processing - ANSWER ✓ updating done periodically, such as daily
29.Online, Real-Time Processing - ANSWER ✓ the computer system processes
data immediately after capture and provides updated information to users on
a timely basis
30.Segregation of Duties - ANSWER ✓ 1. Authorization of Transactions 2.
Record Keeping 3. Custody of Assets 4. Reconciliation
, 31.Fraud Triangle - ANSWER ✓ Opportunity, pressure, rationalization
32.COSO Framework Components - ANSWER ✓ 1. Control Environment 2.
Risk Assessment 3. Control Activities 4. Information/Communication 5.
Monitoring Activities
33.COSO Framework Objectives - ANSWER ✓ operations, reporting,
compliance
34.Vouching - ANSWER ✓ end to start
35.Tracing - ANSWER ✓ start to end
36.XBRL - ANSWER ✓ Extensible Business Reporting Language,
comparability between companies
37.SOX Section 302 - ANSWER ✓ Key company officials (CEO and CFO)
must certify the financial statements.
38.SOX Section 404 - ANSWER ✓ requires management to assess internal
control effectiveness
39.In real world the 2 pieces needed for bank reconciliation : - ANSWER ✓
cash receipts journal and last month's bank reconciliation (to check for any
outstanding checks)
40.Outstanding Checks - ANSWER ✓ Checks issued but not yet presented to
the bank for payment.
41.Principles of Benford's Law - ANSWER ✓ in naturally occurring data set
certain leading digits/numbers appear more frequently than others.
42.example of naturally occurring data sets - ANSWER ✓ Number of twitter
followers, or expense claims
43.Benford's Law does work for : - ANSWER ✓ Things that are totally random
and things with inherent constraints such as maximums or minimums
