ACTG 313 UPDATED EXAM SET TEST QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔Owners not involved in the business - ✔✔Just because you own stock doesn't mean
you can tell people what to do
-Can't even watch what is going on
-Management is required by law to collect info on what they are doing and publish it for
owners
✔✔BOD - ✔✔-hires auditor
-Can release profits to owners (DIVIDENDS)
-Or can keep profit and grow business
✔✔Profit - ✔✔=more investors
-higher share price
✔✔Owners can sell stock at a profit - ✔✔Owners can sell stock at a profit
✔✔Information System (IS) - ✔✔a collection of discrete components, which work
together to convert data to information
✔✔AIS: Accounting Information System - ✔✔-Today the AIS is used far more for the
purpose of "To provide information so people and machines can do their jobs to
facilitate commerce"
-Does much more in today's business environment than double entry bookkeeping
-Responsible for capturing, transporting, organizing, storing, retrieving, formatting, and
presenting the data so that it ends up as usable information provided to those who need
it
-Major responsibility: Facilitate those job functions
-Involves the study of the capture, transport, organization, retrieval, presentation, and
use of the data produced by events and activities which occur in the running of the
business
-Must capture data and transport it to where it is needed. It must be stored and
organized so it can be used again
-Practically everyone in organization uses this
✔✔MIS - ✔✔
✔✔CIS - ✔✔
✔✔CS - ✔✔
✔✔IT - ✔✔
, ✔✔Accounting Information System Illustration Diagram Model - ✔✔A business event
occurs. The system captures data about the event. The data is transferred to a storage
location, where it is organized. A user needs information. The user transmits a query.
The query is designed to select and retrieve the information needed from among the
plethora of stored data. The information is formatted and presented in a form useful to
the user, often in the form of a report.
Reports don't have to be paper, nor does the result of a query have to be a formal
report. Ex. Gas Pump
-The model is still the same. The only thing that changed is technology
-Existed in this form for centuries, long before computers
✔✔Money - ✔✔A medium for exchange
-Using money adds to flexibility of exchange - no longer have to possess something
wanted by other party
-More universal acceptance of money, greater the usefulness, and therefore its
acceptance - a Circular reasoning
✔✔Currency - ✔✔the currency unit serves as a measure of value to facilitate trade
✔✔Cash - ✔✔Demand deposits, time deposits, money markets are considered cash
✔✔Demand Deposit - ✔✔
✔✔Time Deposit - ✔✔
✔✔Fungible Assets - ✔✔anything used in trading for goods/services
✔✔Short Term Investments - ✔✔
✔✔Money Markets - ✔✔
✔✔Commercial Paper - ✔✔
✔✔Luca Pacioli - ✔✔Father of Accounting
His student was Leonardo Da Vinci
1494: 1st person to publish a book on bookkeeping & wrote rules for Double Entry
Accounting System
-was a monk who wrote textbooks for the boys the tutored
✔✔Double-Entry Bookkeeping - ✔✔-1494
-Started when trading with currency began
-About making debits and credits, and recording in journals and ledgers, primarily so
that financial statements can be produced
SOLUTIONS GUARANTEE A+
✔✔Owners not involved in the business - ✔✔Just because you own stock doesn't mean
you can tell people what to do
-Can't even watch what is going on
-Management is required by law to collect info on what they are doing and publish it for
owners
✔✔BOD - ✔✔-hires auditor
-Can release profits to owners (DIVIDENDS)
-Or can keep profit and grow business
✔✔Profit - ✔✔=more investors
-higher share price
✔✔Owners can sell stock at a profit - ✔✔Owners can sell stock at a profit
✔✔Information System (IS) - ✔✔a collection of discrete components, which work
together to convert data to information
✔✔AIS: Accounting Information System - ✔✔-Today the AIS is used far more for the
purpose of "To provide information so people and machines can do their jobs to
facilitate commerce"
-Does much more in today's business environment than double entry bookkeeping
-Responsible for capturing, transporting, organizing, storing, retrieving, formatting, and
presenting the data so that it ends up as usable information provided to those who need
it
-Major responsibility: Facilitate those job functions
-Involves the study of the capture, transport, organization, retrieval, presentation, and
use of the data produced by events and activities which occur in the running of the
business
-Must capture data and transport it to where it is needed. It must be stored and
organized so it can be used again
-Practically everyone in organization uses this
✔✔MIS - ✔✔
✔✔CIS - ✔✔
✔✔CS - ✔✔
✔✔IT - ✔✔
, ✔✔Accounting Information System Illustration Diagram Model - ✔✔A business event
occurs. The system captures data about the event. The data is transferred to a storage
location, where it is organized. A user needs information. The user transmits a query.
The query is designed to select and retrieve the information needed from among the
plethora of stored data. The information is formatted and presented in a form useful to
the user, often in the form of a report.
Reports don't have to be paper, nor does the result of a query have to be a formal
report. Ex. Gas Pump
-The model is still the same. The only thing that changed is technology
-Existed in this form for centuries, long before computers
✔✔Money - ✔✔A medium for exchange
-Using money adds to flexibility of exchange - no longer have to possess something
wanted by other party
-More universal acceptance of money, greater the usefulness, and therefore its
acceptance - a Circular reasoning
✔✔Currency - ✔✔the currency unit serves as a measure of value to facilitate trade
✔✔Cash - ✔✔Demand deposits, time deposits, money markets are considered cash
✔✔Demand Deposit - ✔✔
✔✔Time Deposit - ✔✔
✔✔Fungible Assets - ✔✔anything used in trading for goods/services
✔✔Short Term Investments - ✔✔
✔✔Money Markets - ✔✔
✔✔Commercial Paper - ✔✔
✔✔Luca Pacioli - ✔✔Father of Accounting
His student was Leonardo Da Vinci
1494: 1st person to publish a book on bookkeeping & wrote rules for Double Entry
Accounting System
-was a monk who wrote textbooks for the boys the tutored
✔✔Double-Entry Bookkeeping - ✔✔-1494
-Started when trading with currency began
-About making debits and credits, and recording in journals and ledgers, primarily so
that financial statements can be produced
