ACTG 4510 EXAM SCRIPT 2025/2026 QUESTIONS WITH
ANSWERS GRADED A+
✔✔____________ is data that have been organized and processed to provide meaning
and context that can improve the decision-making process. - ✔✔Information
✔✔_______________ is the benefit produced by the information minus the cost of
producing it. - ✔✔value of information
✔✔The value of information is the difference between the benefits realized from using
that information and the costs of producing it. Would you, or any organization, ever
produce information if its expected costs exceeded its benefits? If so, provide some
examples. If not, why? - ✔✔Information is extremely useful. I would not produce
information if expected cost exceed it's benefits. Information can be difficult to value and
it would only hurt us for spending money where information is not being calculated as
effectively as possible.
✔✔______________ consists of receiving, storing, and distributing the materials an
organization uses to create the services and products it sells. - ✔✔Inbound logistics
✔✔____________ activities transform inputs into final products or services. -
✔✔Operations
✔✔____________ activities distribute finished products or services to customers. -
✔✔Outbound logistics
✔✔____________ activities help customers buy the organization's products or services.
- ✔✔Marketing and sales
✔✔_____________ activities provide post-sale support to customers. Examples include
repair and maintenance services. - ✔✔Service
✔✔Which information characteristic does this feature?
A report was carefully designed so that its data was easily comprehended by the
reader. - ✔✔Understandable
✔✔Which information characteristic does this feature?
A manager working on the weekend needed information about a customer's production
requests and found it on the company's network. - ✔✔Available
✔✔Which information characteristic does this feature?
Before production reports are accepted, two clerks working independently must produce
the same information. - ✔✔Verifiable
,✔✔Which information characteristic does this feature?
An accounts receivable aging report included all customer accounts. - ✔✔Complete
✔✔Which information characteristic does this feature?
A report was checked by three different people to make sure it was correct. -
✔✔Accurate
✔✔Which information characteristic does this feature?
An accounts receivable aging report is used in credit-granting decisions. - ✔✔Relevant
✔✔Which information characteristic does this feature?
An accounts receivable aging report was received before the credit manager had to
decide whether to extend credit to a customer. - ✔✔Timely
✔✔Which information characteristic does this feature?
Needing help with a decision, a manager sought the opinion of a highly regarded expert.
- ✔✔Reputable
✔✔Which information characteristic does this feature?
To protect intellectual property, a company encrypted the data, stored it in a very secure
facility, and limited its use to five people. - ✔✔Access restricted
✔✔Which information characteristic does this feature?
Tired of keying supplier prices into a database, a purchasing manager insisted the data
be sent in machine readable form. - ✔✔Useable
✔✔Which information characteristic does this feature?
After a lengthy, rambling presentation, a CEO insisted future presentations contain only
pertinent facts and last no more than 30minutes. - ✔✔Concise
✔✔Which information characteristic does this feature?
A new manager insisted that monthly reports look the same so she could compare a
new month's results to previous months. - ✔✔Consistent
✔✔Which information characteristic does this feature?
After making a decision based on outdated data, a new CFO required all analysis to be
conducted with up-to-date data. - ✔✔Current
✔✔Which information characteristic does this feature?
Reluctant to rely on his personal feelings about a decision, a manager sought the
opinion of an outside expert. - ✔✔Objective
, ✔✔Which part of the business cycle?
-where goods and services are sold for cash or a future promise to receive cash -
✔✔revenue
✔✔Which part of the business cycle?
-where companies purchase inventory for resale or raw materials to use in producing
products in exchange for cash or a future promise to pay cash. - ✔✔expenditure
✔✔Which part of the business cycle?
-where raw materials are transformed into finished goods. - ✔✔production cycle or
conversion cycle
✔✔Which part of the business cycle?
-where employees are hired, trained, compensated, evaluated, promoted, and
terminated. - ✔✔human resources/payroll cycle
✔✔Which part of the business cycle?
-where companies sell shares in the company to investors and borrow money, and
where investors are paid dividends and interest is paid on loans. - ✔✔financing cycle
✔✔___________ is the accounting, finance, legal, and general administration activities
that allow an organization to function. - ✔✔Firm infrastructure
✔✔Which business cycle does this activity belong to?
Collect payment on customer accounts. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
Complete a picking ticket for a customer order. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
Decide how many units to make next month. - ✔✔Production cycle
✔✔Which business cycle does this activity belong to?
Disburse payroll checks to factory workers. - ✔✔HR/Payroll cycle
✔✔Which business cycle does this activity belong to?
Draw upon a line of credit. - ✔✔Financing cycle
✔✔Which business cycle does this activity belong to?
Establish a $10,000 credit limit for a new customer. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
ANSWERS GRADED A+
✔✔____________ is data that have been organized and processed to provide meaning
and context that can improve the decision-making process. - ✔✔Information
✔✔_______________ is the benefit produced by the information minus the cost of
producing it. - ✔✔value of information
✔✔The value of information is the difference between the benefits realized from using
that information and the costs of producing it. Would you, or any organization, ever
produce information if its expected costs exceeded its benefits? If so, provide some
examples. If not, why? - ✔✔Information is extremely useful. I would not produce
information if expected cost exceed it's benefits. Information can be difficult to value and
it would only hurt us for spending money where information is not being calculated as
effectively as possible.
✔✔______________ consists of receiving, storing, and distributing the materials an
organization uses to create the services and products it sells. - ✔✔Inbound logistics
✔✔____________ activities transform inputs into final products or services. -
✔✔Operations
✔✔____________ activities distribute finished products or services to customers. -
✔✔Outbound logistics
✔✔____________ activities help customers buy the organization's products or services.
- ✔✔Marketing and sales
✔✔_____________ activities provide post-sale support to customers. Examples include
repair and maintenance services. - ✔✔Service
✔✔Which information characteristic does this feature?
A report was carefully designed so that its data was easily comprehended by the
reader. - ✔✔Understandable
✔✔Which information characteristic does this feature?
A manager working on the weekend needed information about a customer's production
requests and found it on the company's network. - ✔✔Available
✔✔Which information characteristic does this feature?
Before production reports are accepted, two clerks working independently must produce
the same information. - ✔✔Verifiable
,✔✔Which information characteristic does this feature?
An accounts receivable aging report included all customer accounts. - ✔✔Complete
✔✔Which information characteristic does this feature?
A report was checked by three different people to make sure it was correct. -
✔✔Accurate
✔✔Which information characteristic does this feature?
An accounts receivable aging report is used in credit-granting decisions. - ✔✔Relevant
✔✔Which information characteristic does this feature?
An accounts receivable aging report was received before the credit manager had to
decide whether to extend credit to a customer. - ✔✔Timely
✔✔Which information characteristic does this feature?
Needing help with a decision, a manager sought the opinion of a highly regarded expert.
- ✔✔Reputable
✔✔Which information characteristic does this feature?
To protect intellectual property, a company encrypted the data, stored it in a very secure
facility, and limited its use to five people. - ✔✔Access restricted
✔✔Which information characteristic does this feature?
Tired of keying supplier prices into a database, a purchasing manager insisted the data
be sent in machine readable form. - ✔✔Useable
✔✔Which information characteristic does this feature?
After a lengthy, rambling presentation, a CEO insisted future presentations contain only
pertinent facts and last no more than 30minutes. - ✔✔Concise
✔✔Which information characteristic does this feature?
A new manager insisted that monthly reports look the same so she could compare a
new month's results to previous months. - ✔✔Consistent
✔✔Which information characteristic does this feature?
After making a decision based on outdated data, a new CFO required all analysis to be
conducted with up-to-date data. - ✔✔Current
✔✔Which information characteristic does this feature?
Reluctant to rely on his personal feelings about a decision, a manager sought the
opinion of an outside expert. - ✔✔Objective
, ✔✔Which part of the business cycle?
-where goods and services are sold for cash or a future promise to receive cash -
✔✔revenue
✔✔Which part of the business cycle?
-where companies purchase inventory for resale or raw materials to use in producing
products in exchange for cash or a future promise to pay cash. - ✔✔expenditure
✔✔Which part of the business cycle?
-where raw materials are transformed into finished goods. - ✔✔production cycle or
conversion cycle
✔✔Which part of the business cycle?
-where employees are hired, trained, compensated, evaluated, promoted, and
terminated. - ✔✔human resources/payroll cycle
✔✔Which part of the business cycle?
-where companies sell shares in the company to investors and borrow money, and
where investors are paid dividends and interest is paid on loans. - ✔✔financing cycle
✔✔___________ is the accounting, finance, legal, and general administration activities
that allow an organization to function. - ✔✔Firm infrastructure
✔✔Which business cycle does this activity belong to?
Collect payment on customer accounts. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
Complete a picking ticket for a customer order. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
Decide how many units to make next month. - ✔✔Production cycle
✔✔Which business cycle does this activity belong to?
Disburse payroll checks to factory workers. - ✔✔HR/Payroll cycle
✔✔Which business cycle does this activity belong to?
Draw upon a line of credit. - ✔✔Financing cycle
✔✔Which business cycle does this activity belong to?
Establish a $10,000 credit limit for a new customer. - ✔✔Revenue cycle
✔✔Which business cycle does this activity belong to?
