ACTG 313 PRACTICE EXAM 2026 TEST PAPER
QUESTIONS AND SOLUTIONS 100% CORRECT
● System Answer: detailed methods, procedures, and routines that carry
out activities, perform a duty, achieve goals or objectives, or solve
problems.
● Goal Conflict Answer: when a subsystem's goals are inconsistent with
the goals of another subsystem or the system as a whole
● Goal Congruence Answer: when a subsystem achieves its goals while
contributing to the organization's overall goal
● Data Answer: facts that are collected, recorded, stored, and processed
by an information system
● Information Answer: data that have been organized and processed to
provide meaning and improve decision making
● Machine-Readable Answer: data in a format that can be processed by
a computer
,● Information Overload Answer: exceeding the amount of information a
human mind can absorb and process, resulting in a decline in decision-
making quality and an increase in the cost of providing information
● Information Technology (IT) Answer: the computers and other
electronic devices used to store, receive, transmit, and manipulate data
● Value of Information Answer: the benefit provided by information
minus the cost of producing it
● Information System Answer: the people and technologies in an
organization that produce information.
● Business Process Answer: a set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve a
specific organizational goal
● Transaction Answer: an agreement between two entities to exchange
goods, services, or any other event that can be measured in economic
terms by an organization
● Transaction Processing Answer:
,● Give-Get Exchange Answer: transactions that happen a great many
times, such as giving up cash to get inventory from a supplier and giving
employees a paycheck in exchange for labor
● Business Processes/Transaction Cycles Answer: the major give-get
exchanges that occur frequently in most companies
● Revenue Cycle Answer: a recurring set of business activities and
related information processing operations associated with providing
goods and services to customers and collecting cash in payment for
those sales
● Expenditure Cycle Answer: activities associated with purchasing
inventory for resale or raw materials in exchange for cash or a future
promise to pay cash
● Production/Conversion Cycle Answer: activities associated with using
labor, raw materials, and equipment to produce finished goods
● Human Resource/Payroll Cycle Answer: activities associated with
hiring, training, compensating, evaluating, promoting, and terminating
employees
● Financing Cycle Answer: activities associated with raising money by
selling shares in the company to investors and borrowing money as well
as paying dividends and interest
, ● General Ledger and Reporting System Answer: Information
processing operations involved in updating the general ledger and
preparing reports for both management and external parties
● Accounting Information System (AIS) Answer: a system that collects,
records, stores, and processes data to produce information for decision
makers. It includes people, procedures and instructions, data, software,
information technology infrastructure, and internal controls and security
measures.
● Accounting Answer: the systematic and comprehensive recording of
an organization's financial transactions, including summarizing,
analyzing, and reporting these transactions to all users
● Artificial Intelligence Answer: the use of computer systems to
simulate human intelligence processes such as learning, reasoning, and
self-improvement
● Value Chain Answer: linking all primary and support activities in a
business. Value is added as a product passes through the chain
● Primary Activities Answer: value chain activities that produce,
market, and deliver products and services to customers and provide post-
delivery service and support
QUESTIONS AND SOLUTIONS 100% CORRECT
● System Answer: detailed methods, procedures, and routines that carry
out activities, perform a duty, achieve goals or objectives, or solve
problems.
● Goal Conflict Answer: when a subsystem's goals are inconsistent with
the goals of another subsystem or the system as a whole
● Goal Congruence Answer: when a subsystem achieves its goals while
contributing to the organization's overall goal
● Data Answer: facts that are collected, recorded, stored, and processed
by an information system
● Information Answer: data that have been organized and processed to
provide meaning and improve decision making
● Machine-Readable Answer: data in a format that can be processed by
a computer
,● Information Overload Answer: exceeding the amount of information a
human mind can absorb and process, resulting in a decline in decision-
making quality and an increase in the cost of providing information
● Information Technology (IT) Answer: the computers and other
electronic devices used to store, receive, transmit, and manipulate data
● Value of Information Answer: the benefit provided by information
minus the cost of producing it
● Information System Answer: the people and technologies in an
organization that produce information.
● Business Process Answer: a set of related, coordinated, and structured
activities and tasks performed by people, machines, or both to achieve a
specific organizational goal
● Transaction Answer: an agreement between two entities to exchange
goods, services, or any other event that can be measured in economic
terms by an organization
● Transaction Processing Answer:
,● Give-Get Exchange Answer: transactions that happen a great many
times, such as giving up cash to get inventory from a supplier and giving
employees a paycheck in exchange for labor
● Business Processes/Transaction Cycles Answer: the major give-get
exchanges that occur frequently in most companies
● Revenue Cycle Answer: a recurring set of business activities and
related information processing operations associated with providing
goods and services to customers and collecting cash in payment for
those sales
● Expenditure Cycle Answer: activities associated with purchasing
inventory for resale or raw materials in exchange for cash or a future
promise to pay cash
● Production/Conversion Cycle Answer: activities associated with using
labor, raw materials, and equipment to produce finished goods
● Human Resource/Payroll Cycle Answer: activities associated with
hiring, training, compensating, evaluating, promoting, and terminating
employees
● Financing Cycle Answer: activities associated with raising money by
selling shares in the company to investors and borrowing money as well
as paying dividends and interest
, ● General Ledger and Reporting System Answer: Information
processing operations involved in updating the general ledger and
preparing reports for both management and external parties
● Accounting Information System (AIS) Answer: a system that collects,
records, stores, and processes data to produce information for decision
makers. It includes people, procedures and instructions, data, software,
information technology infrastructure, and internal controls and security
measures.
● Accounting Answer: the systematic and comprehensive recording of
an organization's financial transactions, including summarizing,
analyzing, and reporting these transactions to all users
● Artificial Intelligence Answer: the use of computer systems to
simulate human intelligence processes such as learning, reasoning, and
self-improvement
● Value Chain Answer: linking all primary and support activities in a
business. Value is added as a product passes through the chain
● Primary Activities Answer: value chain activities that produce,
market, and deliver products and services to customers and provide post-
delivery service and support
