ACG 3401 Chapter 1 Exam 2026
Questions and Answers Graded A+
accounting information system (AIS) - Correct answer-specialized subset of
information systems that processes financial transactions
management information system (MIS) - Correct answer-system that processes
nonfinancial transactions not normally processed by traditional accounting
information systems
transaction - Correct answer-an event that affects or is of interest to the
organization and is processed by its information system as a unit of work
financial transaction - Correct answer-an economic event that affects the assets and
equities of the organization, is reflectd in its accounts, and is measured in monetary
units
transaction processing system (TPS) - Correct answer-activity composed of three
major subsystems -the revenue cycle, the expenditure cycle, and the conversion
cycle
, general ledger/financial reporting system (GL/FRS) - Correct answer-system that
produces traditional financial statements, such as income statements, balance
sheets, statements of cash flows, tax returns, and other reports required by law
management reporting system (MRS) - Correct answer-system that provides the
internal financial information needed to manage a business
external users - Correct answer-creditors, stockholders, potential investors,
regulatory agencies, tax authorities, suppliers, and customers
internal users - Correct answer-management at all levels of the organization, as
well as operations personnel
data sources - Correct answer-financial transactions that enter the information
system from either internal or external sources
data collection - Correct answer-ensure that event data entering the system are
valid, complete, and free from material errors
data processing - Correct answer-group that manages the computer resources to
perform the day-to-day processing of transactions
database - Correct answer-physical repository for financial data
database management - Correct answer-special software system that is
programmed to know which data elements each user is authorized to access
Questions and Answers Graded A+
accounting information system (AIS) - Correct answer-specialized subset of
information systems that processes financial transactions
management information system (MIS) - Correct answer-system that processes
nonfinancial transactions not normally processed by traditional accounting
information systems
transaction - Correct answer-an event that affects or is of interest to the
organization and is processed by its information system as a unit of work
financial transaction - Correct answer-an economic event that affects the assets and
equities of the organization, is reflectd in its accounts, and is measured in monetary
units
transaction processing system (TPS) - Correct answer-activity composed of three
major subsystems -the revenue cycle, the expenditure cycle, and the conversion
cycle
, general ledger/financial reporting system (GL/FRS) - Correct answer-system that
produces traditional financial statements, such as income statements, balance
sheets, statements of cash flows, tax returns, and other reports required by law
management reporting system (MRS) - Correct answer-system that provides the
internal financial information needed to manage a business
external users - Correct answer-creditors, stockholders, potential investors,
regulatory agencies, tax authorities, suppliers, and customers
internal users - Correct answer-management at all levels of the organization, as
well as operations personnel
data sources - Correct answer-financial transactions that enter the information
system from either internal or external sources
data collection - Correct answer-ensure that event data entering the system are
valid, complete, and free from material errors
data processing - Correct answer-group that manages the computer resources to
perform the day-to-day processing of transactions
database - Correct answer-physical repository for financial data
database management - Correct answer-special software system that is
programmed to know which data elements each user is authorized to access
