ACC 304 Midterm 1 Exam | Questions with 100% Correct Answers

ACC 304 Midterm 1 Exam | Questions with 100% Correct Answers Information is best described as a) raw facts about transactions. b) data that have been organized and processed to provide meaning and improve decision making. c) facts that are collected, recorded, stored, and processed by an information system. d) A set of related, coordinated, and structured data. The value of information can best be determined by a) the benefit provided by information less the cost of producing it. b) the relevance provided to decision makers. c) the time it takes to help decision makers make their decisions. d) the usefulness provided to decision makers. ________ information reduces uncertainty, improves decision making, or confirms or corrects prior expectations. a) Verifiable b) Reliable c) Complete d) Relevant Joey Smith has been the controller of Nadia Cake for the past 5 years. The owners of Nadia have recently decided to expand their operation and are in the process of obtaining a loan from a local bank. In order to be qualified for the loan, the bank asks Nadia to conduct an audit of the financial records. The auditors have been unable to obtain Nadia's financial statements that were prepared by Joey. While there is no evidence of wrongdoing, the auditors are not able to complete the audit. Which of the following characteristics of useful information is absent in the situation described above? a) Verifiable b) Reliable c) Complete d) Accessible Before a company can identify the information needed to effectively manage a process, the company must a) consult with its operation department. b) upgrade its information system. c) hire an information system director. d) understand its business process. In which transaction cycle would information for generating customer orders be most likely to pass between internal and external accounting information systems? a) The expenditure cycle. b) The HR/payroll cycle. c) The financing cycle. d) The revenue cycle. Which of the following is not a transaction cycle? a) The revenue cycle. b) The expenditure cycle. c) The general ledger cycle. d) The HR/payroll cycle. Which of the following is an example of a common activity in an AIS? a) Selling goods and services and collecting cash. b) Keeping track of the number of customers who visited the company's website. c) Recording sales calls for marketing purposes. d) Organizing community services for the company. All of the following are ways an AIS can add value to an organization except: a) Improving internal controls b) Improving efficiency c) Sharing knowledge d) Increasing product costs Which of the following is NOT a component of an AIS? a) people b) IT infrastructure c) software d) company culture What is the first step in the data processing cycle? a) Storage b) Processing c) Output d) Input Data must be collected about three facets of each business activity. These facets are a) activity of interest, the process, and the people who participate. b) the resource(s), the benefits, and the process. c) activity of interest, the resource(s), and the people who participate. d) activity of interest, the resource(s), and the process. Which of the following is an example of a turnaround document? a) Utility bill. b) A company's financial statements. c) Employee earnings record. d) Purchase orders. Which of the following is the most common source document in the expenditure cycle? a) Bill of lading. b) Remittance advice. c) Purchase order. d) Credit memo. Cupcake by Emma is a dessert retailer located in Springtown, Texas. Emma is a sole proprietorship that stocks an inventory of between 30 and 50 different kind of dessert. Inventory is updated in real time by the company's AIS. If Emma wishes to keep cumulative data about its company, Emma might use a a) master file. b) transaction file. c) specific file. d) relational file. ERP is the abbreviation for a) entity resource planning. b) enterprise resource program. c) enterprise reporting program. d) enterprise resource planning. Which of the following is a benefit of implementing an ERP system at a multinational corporation? a) Customer service improves as employees can quickly access data. b) Increased productivity of employees. c) All of these are correct. d) Standardization of procedures and reports across business units.