ACCY 310 Exam 2025 With 100%
Correct Answers
Accounting information system (AIS) - CORRECT ANSWER✔✔defined as a system that records,
processes, and reports on transactions to provide financial and nonfinancial information to
make decisions and have appropriate levels of internal controls for those transactions
System - CORRECT ANSWER✔✔an assemblage or combination of things or parts forming a
complex or unitary whole. Example: interstate highway system.
Subsystem - CORRECT ANSWER✔✔A part of a system. For example I-55 is part of the interstate
highway system
Attributes of Useful Information - CORRECT ANSWER✔✔To be most useful to decision makers,
information from an AIS must be both relevant and reliable and have both 1. Relevance and 2.
Reliability
Relevance - CORRECT ANSWER✔✔a. Predictive value (helps with forecasting the future)
b. Feedback value (corrects or confirms what and been predicted in the past)
c. Timeliness (available when needed or in time to have an impact on a decision.)
Reliability - CORRECT ANSWER✔✔a. Verifiable (can be confirmed by an independent party)
b. Representational faithfulness (reports what actually happened)
c. Neutrality (information is not biased)
Data - CORRECT ANSWER✔✔Raw facts that describe the characteristics of an event that, in
isolation, have little meaning
,Information - CORRECT ANSWER✔✔data being organized in a meaningful way to be useful to
the user. Often processed and then combined with the appropriate context. Required for
decision makers to make decisions.
Information Overload - CORRECT ANSWER✔✔The difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information. Therefore, an AIS
must be carefully designed to provide that information that is most useful without
overwhelming the user.
Information Value Chain - CORRECT ANSWER✔✔The overall transformation from a business
need and business event (like each sale of a US flag) to the collection of data and information to
an ultimate decision
Business Need/ Event -> Data-> Information -> Knowledge -> Decision
Discretionary Information - CORRECT ANSWER✔✔Managerial accounting information is
generally produced for internal information purposes. There is no law requiring that it be
provided to management. Management simply decides what information they need to track
and build an information system to track it.
Mandatory Information - CORRECT ANSWER✔✔Much of the financial and tax accounting
information is produced for external information purposes. Is usually produced at the lowest
cost possible to comply with the laws of the regulators.
Business analysts - CORRECT ANSWER✔✔Accountants have a role as ____________. That is,
they gather information to solve business problems or address business opportunities.
User - CORRECT ANSWER✔✔To recognize the needed competencies for accountants with
respect to information technology, it is important to recognize the potential role of accountants
in accounting information systems, including:
, The accountant as a ________ of accounting information systems - whether it be inputting
journal entries into an accounting system, using a financial spreadsheet to calculate the costs of
a product, or using anti-virus.
Manager - CORRECT ANSWER✔✔The accountant as a ___________ of accounting information
systems.
Designer - CORRECT ANSWER✔✔The accountant as the ___________ of accounting
information systems.
Evaluator - CORRECT ANSWER✔✔The accountant as ____________ of accounting information
systems (IT auditor, assessor of internal controls, tax advisor, general auditor, consultant)
Business Value - CORRECT ANSWER✔✔All items, events, and interactions that determine the
financial health and/or well-being of the firm. IT may come from suppliers, customers, or
employees or even from information systems. It does not necessarily need to be determined by
stock price or net income.
Value Chain - CORRECT ANSWER✔✔A chain of business processes for a firm. Products pass
through all activities of the chain in order; at each activity, the product is expected to gain some
value. It is important not to confuse the concept with the actual cost of performing those
activities.
Corporate Value Chain - CORRECT ANSWER✔✔Has both primary activities and support
activities. Primary activities directly provide value to the customer and include 5 activities,
inbound logistics, operations, outbound logistics, marketing and sales activities, and service
activities
Inbound logistics - CORRECT ANSWER✔✔the activities associated with receiving and storing raw
materials and other partially completed materials and distributing those materials to
manufacturing when and where they are needed.
Correct Answers
Accounting information system (AIS) - CORRECT ANSWER✔✔defined as a system that records,
processes, and reports on transactions to provide financial and nonfinancial information to
make decisions and have appropriate levels of internal controls for those transactions
System - CORRECT ANSWER✔✔an assemblage or combination of things or parts forming a
complex or unitary whole. Example: interstate highway system.
Subsystem - CORRECT ANSWER✔✔A part of a system. For example I-55 is part of the interstate
highway system
Attributes of Useful Information - CORRECT ANSWER✔✔To be most useful to decision makers,
information from an AIS must be both relevant and reliable and have both 1. Relevance and 2.
Reliability
Relevance - CORRECT ANSWER✔✔a. Predictive value (helps with forecasting the future)
b. Feedback value (corrects or confirms what and been predicted in the past)
c. Timeliness (available when needed or in time to have an impact on a decision.)
Reliability - CORRECT ANSWER✔✔a. Verifiable (can be confirmed by an independent party)
b. Representational faithfulness (reports what actually happened)
c. Neutrality (information is not biased)
Data - CORRECT ANSWER✔✔Raw facts that describe the characteristics of an event that, in
isolation, have little meaning
,Information - CORRECT ANSWER✔✔data being organized in a meaningful way to be useful to
the user. Often processed and then combined with the appropriate context. Required for
decision makers to make decisions.
Information Overload - CORRECT ANSWER✔✔The difficulty a person faces in understanding a
problem and making a decision as a consequence of too much information. Therefore, an AIS
must be carefully designed to provide that information that is most useful without
overwhelming the user.
Information Value Chain - CORRECT ANSWER✔✔The overall transformation from a business
need and business event (like each sale of a US flag) to the collection of data and information to
an ultimate decision
Business Need/ Event -> Data-> Information -> Knowledge -> Decision
Discretionary Information - CORRECT ANSWER✔✔Managerial accounting information is
generally produced for internal information purposes. There is no law requiring that it be
provided to management. Management simply decides what information they need to track
and build an information system to track it.
Mandatory Information - CORRECT ANSWER✔✔Much of the financial and tax accounting
information is produced for external information purposes. Is usually produced at the lowest
cost possible to comply with the laws of the regulators.
Business analysts - CORRECT ANSWER✔✔Accountants have a role as ____________. That is,
they gather information to solve business problems or address business opportunities.
User - CORRECT ANSWER✔✔To recognize the needed competencies for accountants with
respect to information technology, it is important to recognize the potential role of accountants
in accounting information systems, including:
, The accountant as a ________ of accounting information systems - whether it be inputting
journal entries into an accounting system, using a financial spreadsheet to calculate the costs of
a product, or using anti-virus.
Manager - CORRECT ANSWER✔✔The accountant as a ___________ of accounting information
systems.
Designer - CORRECT ANSWER✔✔The accountant as the ___________ of accounting
information systems.
Evaluator - CORRECT ANSWER✔✔The accountant as ____________ of accounting information
systems (IT auditor, assessor of internal controls, tax advisor, general auditor, consultant)
Business Value - CORRECT ANSWER✔✔All items, events, and interactions that determine the
financial health and/or well-being of the firm. IT may come from suppliers, customers, or
employees or even from information systems. It does not necessarily need to be determined by
stock price or net income.
Value Chain - CORRECT ANSWER✔✔A chain of business processes for a firm. Products pass
through all activities of the chain in order; at each activity, the product is expected to gain some
value. It is important not to confuse the concept with the actual cost of performing those
activities.
Corporate Value Chain - CORRECT ANSWER✔✔Has both primary activities and support
activities. Primary activities directly provide value to the customer and include 5 activities,
inbound logistics, operations, outbound logistics, marketing and sales activities, and service
activities
Inbound logistics - CORRECT ANSWER✔✔the activities associated with receiving and storing raw
materials and other partially completed materials and distributing those materials to
manufacturing when and where they are needed.
