©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
ACTG 313 Final Exam Questions With
Correct Answers 100% Verified.
Data - Answer✔facts collected, recorded, and stored in the system
Information - Answer✔Data converted into a meaningful and useful context
Example of data - Answer✔2/22/14
ABC Company
123, 99, 3, 20, 60
Example of information - Answer✔best-selling product, best customer, worst-selling product,
worst customer
Decision Quality - Answer✔• Information helps us make better decisions.
• Too much information causing information overload can reduce decision quality.
• Information Technology (IT) is used to help decision-makers more effectively filter and
condense information.
value of information - Answer✔when benefits exceed the costs of gathering, maintaining, and
storing data
information technology - Answer✔Useful to help decision-makers more effectively filter and
condense information.
What makes information useful? 14 characteristics - Answer✔1. access restricted
2. accurate
3. available
4. reputable
5. complete
6. concise
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, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
7. consistent
8. current
9. objective
10. relevant
11. timely
12. useable
13. understandable
14. verifiable
Access Restricted - Answer✔limit access to authorized parties
accurate - Answer✔correct in all details; exact, free of errors
available - Answer✔ready for use, at hand
reputable - Answer✔perceived as true and credible
complete - Answer✔does not omit important aspects of the events or activities it measures
concise - Answer✔clear, sufficient, brief, but comprehensive
consistent - Answer✔presented in the same format over time
current - Answer✔up to the present date and time
objective - Answer✔unbiased; unprejudiced
relevant - Answer✔reduces uncertainty, improves decision making, or confirms or corrects
prior expectations
timely - Answer✔provided in time for decision makers to make decisions
useable - Answer✔easy to use for different task
understandable - Answer✔easily comprehended and interpreted
verifiable - Answer✔2 independent, knowledgeable people produce the same information
machine-readable format - Answer✔Data is most useful when it is in a machine-readable
format that can be read and processed by a computer
Example of machine-readable format - Answer✔XBRL
can improve characteristics that make info useful
2|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
Business Process - Answer✔Set of related, coordinated, and structured activities and tasks
performed by people, machines, or both to achieve specific organizational goals
transaction processing - Answer✔using transaction data to create financial statements
examples of give get exchange: rev, exp, production, payroll, financing cycle - Answer✔Revenue
cycle: give goods/service ----- get cash
expense cycle: get goods/service ----- give cash
production cycle: give labor & materials --- get finished goods
payroll cycle: give cash ----- get labor
financing cycle: give cash ---- get cash
Accounting information systems (AIS) - Answer✔system that collects, records, stores, and
processes date in information used for decision makers
what is the output of AIS? - Answer✔information
What does AIS consist of? - Answer✔1. people who use the system
2. processes
3. technology
4. controls to safeguard info
How does AIS add value? - Answer✔1. improving quality and reducing costs
2. improve efficiency
3. improving decision making
Value Chain - Answer✔links together the different activities within the organization that
provide value to the customer
primary activities - Answer✔directly add value to customer
support activities - Answer✔enable primary activities to be efficient and effective
supply chain - Answer✔Extended system that includes the organization's value chain as well as
its suppliers, distributors and customers
data processing cycle - Answer✔
data input steps - Answer✔1. capture transaction data triggered by business activity
2. make sure the captured data is accurate and complete
3|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
3. ensure company policies are followed
captured data for data processing cycle - Answer✔activity of interest
resources affected
people who participated in the activity
where does information come from - Answer✔source documents
source documents - Answer✔captures data when transaction takes place
turnaround documents - Answer✔sent to external party then sent back
chart of accounts - Answer✔A listing of all the numbers assigned to balance sheet and income
statement accounts. The account numbers allow transaction data to be coded, classified, and
entered into the proper accounts. They also facilitate financial statement and report
preparation.
control account - Answer✔GL account that corresponds to a subsidiary ledger
specialized journal - Answer✔used for large numbers of repetitive transactions
sequence codes - Answer✔items numbered consecutively to account for all items
block codes - Answer✔blocks of numbers reserved for specific categories of data
An example is a chart of accounts. EXP Refrigerators in 2000
group codes - Answer✔2 or more subgroups of digits used to code items
Different numbers can stand for a different component 1-2 size 3 color
mnemonic codes - Answer✔letters and numbers interspersed to identify an item
(Dry300W05) 300=low end W=White 05= made by sears
subsidiary ledger - Answer✔for each customer and vendor, each account of theirs is broken
down even further
data storage elements - Answer✔
Data processing - Answer✔CRUD
CRUD - Answer✔Creating new records
Reading existing data
Updating previous record or data
Deleting data
4|Page
ACTG 313 Final Exam Questions With
Correct Answers 100% Verified.
Data - Answer✔facts collected, recorded, and stored in the system
Information - Answer✔Data converted into a meaningful and useful context
Example of data - Answer✔2/22/14
ABC Company
123, 99, 3, 20, 60
Example of information - Answer✔best-selling product, best customer, worst-selling product,
worst customer
Decision Quality - Answer✔• Information helps us make better decisions.
• Too much information causing information overload can reduce decision quality.
• Information Technology (IT) is used to help decision-makers more effectively filter and
condense information.
value of information - Answer✔when benefits exceed the costs of gathering, maintaining, and
storing data
information technology - Answer✔Useful to help decision-makers more effectively filter and
condense information.
What makes information useful? 14 characteristics - Answer✔1. access restricted
2. accurate
3. available
4. reputable
5. complete
6. concise
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
7. consistent
8. current
9. objective
10. relevant
11. timely
12. useable
13. understandable
14. verifiable
Access Restricted - Answer✔limit access to authorized parties
accurate - Answer✔correct in all details; exact, free of errors
available - Answer✔ready for use, at hand
reputable - Answer✔perceived as true and credible
complete - Answer✔does not omit important aspects of the events or activities it measures
concise - Answer✔clear, sufficient, brief, but comprehensive
consistent - Answer✔presented in the same format over time
current - Answer✔up to the present date and time
objective - Answer✔unbiased; unprejudiced
relevant - Answer✔reduces uncertainty, improves decision making, or confirms or corrects
prior expectations
timely - Answer✔provided in time for decision makers to make decisions
useable - Answer✔easy to use for different task
understandable - Answer✔easily comprehended and interpreted
verifiable - Answer✔2 independent, knowledgeable people produce the same information
machine-readable format - Answer✔Data is most useful when it is in a machine-readable
format that can be read and processed by a computer
Example of machine-readable format - Answer✔XBRL
can improve characteristics that make info useful
2|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
Business Process - Answer✔Set of related, coordinated, and structured activities and tasks
performed by people, machines, or both to achieve specific organizational goals
transaction processing - Answer✔using transaction data to create financial statements
examples of give get exchange: rev, exp, production, payroll, financing cycle - Answer✔Revenue
cycle: give goods/service ----- get cash
expense cycle: get goods/service ----- give cash
production cycle: give labor & materials --- get finished goods
payroll cycle: give cash ----- get labor
financing cycle: give cash ---- get cash
Accounting information systems (AIS) - Answer✔system that collects, records, stores, and
processes date in information used for decision makers
what is the output of AIS? - Answer✔information
What does AIS consist of? - Answer✔1. people who use the system
2. processes
3. technology
4. controls to safeguard info
How does AIS add value? - Answer✔1. improving quality and reducing costs
2. improve efficiency
3. improving decision making
Value Chain - Answer✔links together the different activities within the organization that
provide value to the customer
primary activities - Answer✔directly add value to customer
support activities - Answer✔enable primary activities to be efficient and effective
supply chain - Answer✔Extended system that includes the organization's value chain as well as
its suppliers, distributors and customers
data processing cycle - Answer✔
data input steps - Answer✔1. capture transaction data triggered by business activity
2. make sure the captured data is accurate and complete
3|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
3. ensure company policies are followed
captured data for data processing cycle - Answer✔activity of interest
resources affected
people who participated in the activity
where does information come from - Answer✔source documents
source documents - Answer✔captures data when transaction takes place
turnaround documents - Answer✔sent to external party then sent back
chart of accounts - Answer✔A listing of all the numbers assigned to balance sheet and income
statement accounts. The account numbers allow transaction data to be coded, classified, and
entered into the proper accounts. They also facilitate financial statement and report
preparation.
control account - Answer✔GL account that corresponds to a subsidiary ledger
specialized journal - Answer✔used for large numbers of repetitive transactions
sequence codes - Answer✔items numbered consecutively to account for all items
block codes - Answer✔blocks of numbers reserved for specific categories of data
An example is a chart of accounts. EXP Refrigerators in 2000
group codes - Answer✔2 or more subgroups of digits used to code items
Different numbers can stand for a different component 1-2 size 3 color
mnemonic codes - Answer✔letters and numbers interspersed to identify an item
(Dry300W05) 300=low end W=White 05= made by sears
subsidiary ledger - Answer✔for each customer and vendor, each account of theirs is broken
down even further
data storage elements - Answer✔
Data processing - Answer✔CRUD
CRUD - Answer✔Creating new records
Reading existing data
Updating previous record or data
Deleting data
4|Page
