ATI ACCOUNTING FINAL EXAM STUDY GUIDE

ATI ACCOUNTING FINAL EXAM STUDY GUIDE Accounting Information Systems - CORRECT ANSWER -A system that records, processes, summarizes, reports and communicates the results of business transactions to provide financial and nonfinancial information to facilitate decision making. It is designed to ensure appropriate levels of internal controls for those transactions. What makes information useful? - CORRECT ANSWER -In order for information to be useful, it must be relevant and be a faithful representation. Relevance: information must be relevant to the decision maker, capable of influencing the decisions of users Faithful representation: information is complete, neutral, and is free from error. Represents the substance of the underlying economic transaction. What are the mandatory reporting requirements for public corporations? - CORRECT ANSWER -Tax returns and audited financial statements. What is the value chain? - CORRECT ANSWER -A chain of business processes for a firm. Primary activities: 1. Inbound logistics: receiving and storing raw materials + distributing materials to where they are needed 2. Operations: activities that transform inputs into finished goods and services 3. Outbound logistics: activities that warehouse and distribute finished goods to customers