ACCT 307 FINAL REVIEW QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Which of the following is an example of a business rule implementing access controls?
- The warehouse containing inventory must be locked when the inventory manager is not present.
- Users recording collections cannot modify sales records.
- The computer system shall generate an audit trail.
- Internal auditors shall be used.
- The warehouse containing inventory must be locked when the inventory manager is not present and
user's recording collections cannot modify sales records are business rules implementing access
controls. - Answers The warehouse containing inventory must be locked when the inventory manager
is not present and user's recording collections cannot modify sales records are business rules
implementing access controls.
Which of the following is not one of the elements to be identified when developing business rules?
- Important business events.
- Conditions that affects the intention/objective for an event.
- Access controls that limit who can use information.
- Actions to be taken based on conditions. - Answers Access controls that limit who can use
information.
Which of the following best describes the use of type images in UML class modeling?
- Allow companies to include graphic images in class models.
- Used to enumerate a many-to-many association between two REA classes.
- Allow modelers to distinguish between types of activities in an activity diagram.
- Allow categorization of REA classes based on management's information needs. - Answers Allow
categorization of REA classes based on management's information needs.
In the generic REA model for the sales and collections process, the multiplicities between the Sales
and Cash Receipts classes are displayed with question marks. Which of the following best explains
this?
- The direction of process flow depends on the nature of the business.
- The quantities of items sold can't be determined until the sale occurs.
- The actual values will depend on the nature of the business.
- The customer determines the multiplicities for this association. - Answers The actual values will
depend on the nature of the business.
Which of following best describes the control activities that access controls can help implement?
- Document control.
- Safeguard assets.
- Segregation of duties.
- Monitoring. - Answers Segregation of duties
In Access, system designers sometimes set range limits for values of attributes so users can't enter
unreasonable values; this is an example of what kind of controls?
- Application.
- Access.
- Internal.
- Management. - Answers Application
Which of the following best describes the first step in the process for developing business rules?
- Prepare an activity diagram.
- Identify important events (or steps) in a process.
- Prepare a structure diagram.
- Review process documentation. - Answers Identify important events (or steps) in a process.
Which of the following is not an activity in the purchases and payments process?
, - Request prices
- Receive items
- Pay for items
- Bill customers
- All of the choices are activities in the purchases and payments process. - Answers Bill Customers
Which activity results in an increase to accounts payable?
- Receive items
- Send payment
- Request prices
- Return rejected items
- Place purchase order - Answers Receive items
Which of the following is not an example of an application control?
- Range checks ensure that purchases are limited to valid amounts.
- Employee making disbursements cannot modify purchase orders.
- System supplies supplier address for the payment.
- System creates audit trail documenting all changes.
- All of the choices are examples of application controls. - Answers Employee making disbursements
cannot modify purchase orders.
Which of the following is an agent in a purchases and payments structure model?
- Cash disbursement
- Inventory
- Supplier
- Employee labor
- Receipt of goods - Answers Supplier
Which of the following is an event in a purchases and payments structure model?
- Cash
- Inventory
- Employee
- Cash disbursement
- None of the choices are correct. - Answers Cash disbursement
Which of the following events would indicate recording of a purchase in the AIS?
- Issue Purchase Order
- Receive Goods
- Make Payment
- Transfer Inventory
- None of the choices are correct. - Answers Receive Goods
Which of the following is not a desired access control when developing a purchases and payments
business process?
- The person placing the purchase order must not receive the items.
- The person returning items to the supplier must not view the original purchase order.
- The person receiving the order must not see the original purchase order quantities.
- The person paying the supplier must not be able to modify the purchase order. - Answers The
person returning items to the supplier must not view the original purchase order.
In the following basic BPMN diagram of the Sunset Graphics' conversion process, which of the
following bests describes when they would record an increase to work in process inventory?
- When Authorize Product occurs.
- When Issue R/M (raw materials) occurs.
- When Complete Production occurs.
- When Issue R/M and Perform Work occur. - Answers When Issue R/M and Perform Work occur.
Which of the following is an example of a business rule implementing access controls?
- The warehouse containing inventory must be locked when the inventory manager is not present.
- Users recording collections cannot modify sales records.
- The computer system shall generate an audit trail.
- Internal auditors shall be used.
- The warehouse containing inventory must be locked when the inventory manager is not present and
user's recording collections cannot modify sales records are business rules implementing access
controls. - Answers The warehouse containing inventory must be locked when the inventory manager
is not present and user's recording collections cannot modify sales records are business rules
implementing access controls.
Which of the following is not one of the elements to be identified when developing business rules?
- Important business events.
- Conditions that affects the intention/objective for an event.
- Access controls that limit who can use information.
- Actions to be taken based on conditions. - Answers Access controls that limit who can use
information.
Which of the following best describes the use of type images in UML class modeling?
- Allow companies to include graphic images in class models.
- Used to enumerate a many-to-many association between two REA classes.
- Allow modelers to distinguish between types of activities in an activity diagram.
- Allow categorization of REA classes based on management's information needs. - Answers Allow
categorization of REA classes based on management's information needs.
In the generic REA model for the sales and collections process, the multiplicities between the Sales
and Cash Receipts classes are displayed with question marks. Which of the following best explains
this?
- The direction of process flow depends on the nature of the business.
- The quantities of items sold can't be determined until the sale occurs.
- The actual values will depend on the nature of the business.
- The customer determines the multiplicities for this association. - Answers The actual values will
depend on the nature of the business.
Which of following best describes the control activities that access controls can help implement?
- Document control.
- Safeguard assets.
- Segregation of duties.
- Monitoring. - Answers Segregation of duties
In Access, system designers sometimes set range limits for values of attributes so users can't enter
unreasonable values; this is an example of what kind of controls?
- Application.
- Access.
- Internal.
- Management. - Answers Application
Which of the following best describes the first step in the process for developing business rules?
- Prepare an activity diagram.
- Identify important events (or steps) in a process.
- Prepare a structure diagram.
- Review process documentation. - Answers Identify important events (or steps) in a process.
Which of the following is not an activity in the purchases and payments process?
, - Request prices
- Receive items
- Pay for items
- Bill customers
- All of the choices are activities in the purchases and payments process. - Answers Bill Customers
Which activity results in an increase to accounts payable?
- Receive items
- Send payment
- Request prices
- Return rejected items
- Place purchase order - Answers Receive items
Which of the following is not an example of an application control?
- Range checks ensure that purchases are limited to valid amounts.
- Employee making disbursements cannot modify purchase orders.
- System supplies supplier address for the payment.
- System creates audit trail documenting all changes.
- All of the choices are examples of application controls. - Answers Employee making disbursements
cannot modify purchase orders.
Which of the following is an agent in a purchases and payments structure model?
- Cash disbursement
- Inventory
- Supplier
- Employee labor
- Receipt of goods - Answers Supplier
Which of the following is an event in a purchases and payments structure model?
- Cash
- Inventory
- Employee
- Cash disbursement
- None of the choices are correct. - Answers Cash disbursement
Which of the following events would indicate recording of a purchase in the AIS?
- Issue Purchase Order
- Receive Goods
- Make Payment
- Transfer Inventory
- None of the choices are correct. - Answers Receive Goods
Which of the following is not a desired access control when developing a purchases and payments
business process?
- The person placing the purchase order must not receive the items.
- The person returning items to the supplier must not view the original purchase order.
- The person receiving the order must not see the original purchase order quantities.
- The person paying the supplier must not be able to modify the purchase order. - Answers The
person returning items to the supplier must not view the original purchase order.
In the following basic BPMN diagram of the Sunset Graphics' conversion process, which of the
following bests describes when they would record an increase to work in process inventory?
- When Authorize Product occurs.
- When Issue R/M (raw materials) occurs.
- When Complete Production occurs.
- When Issue R/M and Perform Work occur. - Answers When Issue R/M and Perform Work occur.
