ACT 350 EXAM 1 CSU QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

ACT 350 EXAM 1 CSU QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Define Prompt Engineering - Answers process of designing, testing, and refining prompts to produce specific and accurate responses from large language models (LLMs). Prompt engineering in easy words - Answers - Designing prompts - Testing prompts -Refining prompts It is about asking AI the right way so you get the best answers Application of LLM's in accounting - Answers - Data overload -Unstructured data -Complex Decision making -Client communication -Fraud Detection -Assessing internal control -Enhancing data analysis Elements of effective prompting - Answers - Clarity ( use clear language to avoid confusion) - Context & Background -Iterative Refinement( test and refine prompts to improve results) -Brevity(keep it short and direct) -Pattern -Feedback loops Effective pattern of prompt engineering include - Answers [ Objective] [ Context] [Criteria] [Output indicators] Types of prompting techniques - Answers -Zero-shot -Few-shot -Chain of thought Zero-shot prompting - Answers instructions to perform a task without any specific examples. Used for quick, straight-forward tasks. Cons: may lack accuracy for complex tasks Few-shot prompting - Answers instructions with a small number of examples. Used when examples are needed for better context Cons: needs well-chosen examples Chain-of-thought prompting - Answers a technique that allows complex reasoning through intermediate steps. It is a step-by-step guide that allows AI to handle complex reasoning tasks. Define hallucinations - Answers when the model produces an output that is factually incorrect, nonsensical, or not aligned with the input it received Causes of hallucinations - Answers -ambiguous prompts(when it's too broad) -lack of domain-specific training(need specific data) -longer responses -complex queries -uncommon scenarios -biased or untrained data -overreliance on model confidence( AI can present false information with high confidence Define information system - Answers A system consists of interrelated components including physical hardware like monitors and laptops, the software that users interact with, databases used for storage, networks that send data and information throughout the system, and the people who use and maintain it. Input - Answers raw and unorganized data Output - Answers information in formats that are useful for users define accounting information system - Answers An information system that performs data collection, transformation, and reporting that is specific to financial data. It captures accounting data created by business events (or activities) that involve an exchange of economic resources. Define business model - Answers A company's plan for operations. It identifies the customer base, products, operation plans, and sources of revenue and financing. Types of business model - Answers -franchise -subscription -freemium -peer-to-peer(connects individuals with one another, ex. Airbnb) -direct to consumers Define business event - Answers a single business activity in a business process ex. sell goods to customers, purchase equipment Types of Business events - Answers -operating - financing - investing - information Operating business events - Answers Directly related to the company's creating and providing a good or service ex. -collect customer payment - hire employee - pay employee - deliver goods Financing business events - Answers help the company operate by acquiring incoming cash flows to fund operating events ex. -issue stocks - declare dividends - apply for a loan - pay loan installment Investing business events - Answers provide long-term value to the company by purchasing long-term assets that deliver value in the future ex. -buy/sell property, plant and equipment - buy/sell marketable securities - buy/sell other businesses Information business events - Answers involve an exchange of information and never involve an exchange of economic resources ex. - take customer order -create a purchase order -interview candidate -print report Define business process - Answers a group of related business events designed to accomplish the strategic objectives of the business Types of business processes - Answers -Acquisition and payment processes -conversion processes -marketing, sales, and collections processes Acquisition and payment process - Answers acquiring and paying for the resources that the business needs. Businesses need it as an input Examples of common resources: -financing -property, plant, and equipment -employees -inventory -other goods and services Conversion process - Answers "heart of the business" adding value by converting the resources into goods and services that customers want to buy ex. - produce a product Marketing, sales and collections processes - Answers finding and keeping customers or clients, selling and delivering goods and services, and collecting payments ex. -promotions/ads -sells online/in store -collects payment Managers are responsible for business processes, aka data-driven decision-making - Answers -planning -implementing -monitoring -changing and improving processes KPIs - Answers key performance indicators: a quantifiable metric used to measure and evaluate the success of a company based on its objectives ex. -Gross profit margin ratio Data drive decision making - Answers is the process of making business decisions based on data analysis and insights rather than intuition benefits: -more accurate and reliable decisions -faster decision-making with real-time data -reduced risks Information quality - Answers the suitability of information for a particular purpose in a specific task Data integrity - Answers the completeness, accuracy, reliability, and consistency of data throughout its life cycle in the information system Fundamental characteristics of useful information - Answers - relevance -faithful representation Relevance( fundamental) - Answers information must be capable of influencing a decision. The relevant information has: - predictive value: applicable for future events - confirmatory value: ability to either confirm or change previous decisions - materiality: significant impact on the decision Faithful representation (fundamental) - Answers the information must be unbiased and accurate. Faithfully represented information is: - complete: with all information necessary included - neutral: not favoring a particular outcome -error-free: accurate Enhancing characteristics of useful information - Answers -verifiability -timeliness -understanbility -comparability Verifiability ( enhancing) - Answers information results in the same conclusions by independent and knowledgeable individuals Timeliness - Answers information is recent and available in time to influence relevant decisions Understandability - Answers Information is easy to understand because it is properly classified and presented clearly. Comparability - Answers information presents similar items in the same manner to make it easy to identify similarities and differences when necessary Data quality issues - Answers -comparability(consistency) -understandability( when acronyms are used and nobody knows the meaning) -error-free(make sure all the information is valid and exist) -completeness( make sure everything looks fully done) -confirmatory Key points from the information game #1 - Answers (Accounting) Information has value in a world of uncertainty -information has value (up to a point) and can be useful for decision-making. Key points from the information game #2 - Answers When ownership and management (or manager and subordinate) are separated (accounting) information has value for monitoring management (and subordinates) Key points from the information game #3 - Answers When ownership and management (manager and subordinate) are separated, auditing has value in ensuring information is of adequate quality - but the auditor needs to be independent of management.