ACC 409 Exam 1 Questions with Correct Answers Latest Update 2025-2026
information - Answers Data that have been organized and processed to provide meaning and improve
decision making.
Data - Answers Facts that are collected recorded, stored, and processed by an information system
Relevant - Answers reduces uncertainty, improves decision making, or confirms or corrects prior
expectations
Reliable - Answers free from error or bias; accurately represents organization events or activities
Complete - Answers does not omit important aspects of the events or activities it measures
Timely - Answers provided in time for decision makers to make decisions
understandable - Answers presented in a useful and intelligible format
Verifiable - Answers two independent, knowledgeable people produce the same information
Accesessible - Answers Available to users when they need it and in a format they can use
value of information - Answers the benefit provided by information less the cost of producing it
characteristics of Useful Information - Answers relevant, reliable, complete, timely, understandable,
verifiable, accessible
Acquire capital [Key decisions] - Answers How much, Find investors or borrow funds, if borrowing,
obtain best terms
Acquire capital [Information Needs] - Answers Cash flow projections, Pro forma financial statements,
Loan amortization schedule
Acquire building and equipment [Key Decisions] - Answers Size of building, Amount of equipment, Rent
or buy, Location, How to depreciate
Acquire building and equipment [Information Needs] - Answers Capacity needs, Building and equipment
prices, Market study, Tax tables and depreciation regulations
Hire and train employees [Key Decisions] - Answers Experience requirements, How to assess integrity
and competence of applicants, How to train employees
Hire and train employees [Information Needs] - Answers Job description, Applicant job history and skills
Acquire inventory [Key Decisions] - Answers What models to carry, How to purchase, How to manage
inventory (store, control, etc.), Which vendors
, Acquire inventory [Information Needs] - Answers Market analyses, Inventory status reports, Vendor
performance
Advertising and marketing [Key Decisions] - Answers Which media, Content
Advertising and marketing [Information Needs] - Answers Cost analyses, Market Coverage
Sell merchandise [Key Decisions] - Answers Markup percentage, Offer in-house credit, Which credit
cards to accept
Sell merchandise [Information Needs] - Answers Proforma income statement, Credit card costs,
Customer credit costs
Collect payments from customers [Key Decisions] - Answers If offering credit, what terms ; How to
handle cash receipts
Collect payments from customer [Information Needs] - Answers Customer account status, Accounts
receivable ageing report, Accounts receivable records
Pay employees [Key Decisions] - Answers Amount to pay, Deductions and withholding's, Process payroll
in-house or use outside
Pay employees [Information Needs] - Answers Sales (for commission), Time worked (hourly employees),
W-4 forms, Costs of external payroll service
Pay taxes [Key Decisions] - Answers Payroll tax requirements, Sales tax requirement
Pay Taxes [Information Needs] - Answers Government regulations, Total wage expense, total sales
Pay vendors [Key Decisions] - Answers Whom to pay, When to pay, How much to pay
Pay vendors [Information Needs] - Answers Vendor invoices, Accounts payable records, Payment terms
Accounting Information System (AIS) - Answers is the intelligence-- the information-providing vehicle-of
that language
Accounting Information Systems (AIS) 6 Components - Answers 1)The PEOPLE who use the system
2)The PROCEDURES AND INSTRUCTION used to collect, process, and store data
3)The DATA about the organization and its business activities
4)The SOFTWARE used to process the data
information - Answers Data that have been organized and processed to provide meaning and improve
decision making.
Data - Answers Facts that are collected recorded, stored, and processed by an information system
Relevant - Answers reduces uncertainty, improves decision making, or confirms or corrects prior
expectations
Reliable - Answers free from error or bias; accurately represents organization events or activities
Complete - Answers does not omit important aspects of the events or activities it measures
Timely - Answers provided in time for decision makers to make decisions
understandable - Answers presented in a useful and intelligible format
Verifiable - Answers two independent, knowledgeable people produce the same information
Accesessible - Answers Available to users when they need it and in a format they can use
value of information - Answers the benefit provided by information less the cost of producing it
characteristics of Useful Information - Answers relevant, reliable, complete, timely, understandable,
verifiable, accessible
Acquire capital [Key decisions] - Answers How much, Find investors or borrow funds, if borrowing,
obtain best terms
Acquire capital [Information Needs] - Answers Cash flow projections, Pro forma financial statements,
Loan amortization schedule
Acquire building and equipment [Key Decisions] - Answers Size of building, Amount of equipment, Rent
or buy, Location, How to depreciate
Acquire building and equipment [Information Needs] - Answers Capacity needs, Building and equipment
prices, Market study, Tax tables and depreciation regulations
Hire and train employees [Key Decisions] - Answers Experience requirements, How to assess integrity
and competence of applicants, How to train employees
Hire and train employees [Information Needs] - Answers Job description, Applicant job history and skills
Acquire inventory [Key Decisions] - Answers What models to carry, How to purchase, How to manage
inventory (store, control, etc.), Which vendors
, Acquire inventory [Information Needs] - Answers Market analyses, Inventory status reports, Vendor
performance
Advertising and marketing [Key Decisions] - Answers Which media, Content
Advertising and marketing [Information Needs] - Answers Cost analyses, Market Coverage
Sell merchandise [Key Decisions] - Answers Markup percentage, Offer in-house credit, Which credit
cards to accept
Sell merchandise [Information Needs] - Answers Proforma income statement, Credit card costs,
Customer credit costs
Collect payments from customers [Key Decisions] - Answers If offering credit, what terms ; How to
handle cash receipts
Collect payments from customer [Information Needs] - Answers Customer account status, Accounts
receivable ageing report, Accounts receivable records
Pay employees [Key Decisions] - Answers Amount to pay, Deductions and withholding's, Process payroll
in-house or use outside
Pay employees [Information Needs] - Answers Sales (for commission), Time worked (hourly employees),
W-4 forms, Costs of external payroll service
Pay taxes [Key Decisions] - Answers Payroll tax requirements, Sales tax requirement
Pay Taxes [Information Needs] - Answers Government regulations, Total wage expense, total sales
Pay vendors [Key Decisions] - Answers Whom to pay, When to pay, How much to pay
Pay vendors [Information Needs] - Answers Vendor invoices, Accounts payable records, Payment terms
Accounting Information System (AIS) - Answers is the intelligence-- the information-providing vehicle-of
that language
Accounting Information Systems (AIS) 6 Components - Answers 1)The PEOPLE who use the system
2)The PROCEDURES AND INSTRUCTION used to collect, process, and store data
3)The DATA about the organization and its business activities
4)The SOFTWARE used to process the data
