ACTG 313 COMPREHENSIVE EXAMINATION
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS
● 1.2 The value of information can best be determined by
a)the time it takes to help decision makers make their decisions.
b)the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
d)the usefulness provided to decision makers. Answer: c) the benefit
provided by information less the cost of producing it.
● 1.3 ________ information reduces uncertainty, improves decision
making, or confirms or corrects prior expectations.
a)Reliable
b)Complete
c)Verifiable
d)Relevant Answer: d)Relevant
● 1.4 Joey Smith has been the controller of Nadia Cake for the past 5
years. The owners of Nadia have recently decided to expand their
operation and are in the process of obtaining a loan from a local bank. In
order to be qualified for the loan, the bank asks Nadia to conduct an
,audit of the financial records. The auditors have been unable to obtain
Nadia's financial statements that were prepared by Joey. While there is
no evidence of wrongdoing, the auditors are not able to complete the
audit. Which of the following characteristics of useful information is
absent in the situation described above?
a)Accessible
b)Verifiable
c)Complete
d)Reliable Answer: Accessible
● 1.9 All of the following are ways an AIS can add value to an
organization except:
a)Increasing product costs
b)Sharing knowledge
c)Improving efficiency
d)Improving internal controls Answer: a) increasing product costs
● 1.10 Which of the following is NOT a component of an AIS?
a)software
b)company culture
c)IT infrastructure
d)people Answer: b)company culture
,● 2-1.1 The text discusses three different steps when processing input.
Which of the following is (are) one of those steps? (Check all that
apply.)
a)Make sure the input data is processed and stored correctly.
b)Make sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete. Answer: b)Make
sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete.
● 2-1.2 With respect to data input, data must be collected about three
facets of each business activity. Which of the following is (are) one of
those facets? (Check all that apply.)
a)Each activity of interest
b)The resource(s) affected by each activity
c)The decisions that will be made about each activity
d)The people who participate in each activity
e)The controls needed to protect activity data Answer: a,b,d
● 2-1.3 Which of the following statements about data storage is (are)
true? (Check all that apply.)
, a)A chart of accounts is a list of the numbers assigned to each general
ledger account.
b)A general journal is used to record a large number of repetitive
transactions.
c)A subsidiary ledger contains detailed data for any general ledger
account with many individual subaccounts.
d)A specialized journal is used to record infrequent or non-routine
transactions.
e)A general ledger contains detailed level data for every asset, liability,
equity, revenue, and expense account. Answer: a,c
● 2-1.4 With respect to computer-based storage concepts, which of the
following statements is (are) true? (Check all that apply.)
a)An attribute is something about which information is stored.
b)Data values are characteristics of interest that are stored.
c)A set of interrelated, centrally coordinated files is referred to as a
database.
d)A file is a group of related records. Answer: c)A set of interrelated,
centrally coordinated files is referred to as a database.
d)A file is a group of related records.
● 2-1.5 Once business activity data have been entered into the system,
they must be processed to keep the databases current. Which of the
following are NOT one of the four different types of data processing
activities?
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS
● 1.2 The value of information can best be determined by
a)the time it takes to help decision makers make their decisions.
b)the relevance provided to decision makers.
c) the benefit provided by information less the cost of producing it.
d)the usefulness provided to decision makers. Answer: c) the benefit
provided by information less the cost of producing it.
● 1.3 ________ information reduces uncertainty, improves decision
making, or confirms or corrects prior expectations.
a)Reliable
b)Complete
c)Verifiable
d)Relevant Answer: d)Relevant
● 1.4 Joey Smith has been the controller of Nadia Cake for the past 5
years. The owners of Nadia have recently decided to expand their
operation and are in the process of obtaining a loan from a local bank. In
order to be qualified for the loan, the bank asks Nadia to conduct an
,audit of the financial records. The auditors have been unable to obtain
Nadia's financial statements that were prepared by Joey. While there is
no evidence of wrongdoing, the auditors are not able to complete the
audit. Which of the following characteristics of useful information is
absent in the situation described above?
a)Accessible
b)Verifiable
c)Complete
d)Reliable Answer: Accessible
● 1.9 All of the following are ways an AIS can add value to an
organization except:
a)Increasing product costs
b)Sharing knowledge
c)Improving efficiency
d)Improving internal controls Answer: a) increasing product costs
● 1.10 Which of the following is NOT a component of an AIS?
a)software
b)company culture
c)IT infrastructure
d)people Answer: b)company culture
,● 2-1.1 The text discusses three different steps when processing input.
Which of the following is (are) one of those steps? (Check all that
apply.)
a)Make sure the input data is processed and stored correctly.
b)Make sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete. Answer: b)Make
sure company policies are followed when data is input.
c)Make sure to capture transaction data and enter them into the system.
d)Make sure captured data are accurate and complete.
● 2-1.2 With respect to data input, data must be collected about three
facets of each business activity. Which of the following is (are) one of
those facets? (Check all that apply.)
a)Each activity of interest
b)The resource(s) affected by each activity
c)The decisions that will be made about each activity
d)The people who participate in each activity
e)The controls needed to protect activity data Answer: a,b,d
● 2-1.3 Which of the following statements about data storage is (are)
true? (Check all that apply.)
, a)A chart of accounts is a list of the numbers assigned to each general
ledger account.
b)A general journal is used to record a large number of repetitive
transactions.
c)A subsidiary ledger contains detailed data for any general ledger
account with many individual subaccounts.
d)A specialized journal is used to record infrequent or non-routine
transactions.
e)A general ledger contains detailed level data for every asset, liability,
equity, revenue, and expense account. Answer: a,c
● 2-1.4 With respect to computer-based storage concepts, which of the
following statements is (are) true? (Check all that apply.)
a)An attribute is something about which information is stored.
b)Data values are characteristics of interest that are stored.
c)A set of interrelated, centrally coordinated files is referred to as a
database.
d)A file is a group of related records. Answer: c)A set of interrelated,
centrally coordinated files is referred to as a database.
d)A file is a group of related records.
● 2-1.5 Once business activity data have been entered into the system,
they must be processed to keep the databases current. Which of the
following are NOT one of the four different types of data processing
activities?
