ACC406 FINAL EXAM WITH CORRECT
QUESTIONS AND ANSWERS 2025
accounting information system (AIS) - CORRECT-ANSWERSa system that collects,
records, stores, and processes business data to produce information for decision
makers
decision makers - CORRECT-ANSWERSinternal users - management, employees
external users - stockholders, creditors, customers, government, financial institutions
the accounting process - CORRECT-ANSWERS1. capture transaction data on source
documents
2. journalize transactions
3. post transactions to ledger
4. prepare trial balance
,5. journalize and post adjusting entries
6. prepare adjusted trial balance
7. prepare financial statements
8. journalize and post closing entries
9. prepare post-closing trial balance
problems with the traditional view of accounting - CORRECT-ANSWERS-
transactions-oriented as opposed to events-oriented
- narrow focus on financial data
- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
, 2 forms of computerized bookkeeping - CORRECT-ANSWERS1. COBOL (Common
Business-Oriented Language) - custom built for each firm
2. accounting software package - off the shelf
the database approach - CORRECT-ANSWERSstore all business data in one place,
one time, in its most disaggregated form; events-oriented
enterprise wide repository - CORRECT-ANSWERSstorage of all entity and event data
in a single integrated repository
ERP system - CORRECT-ANSWERSspan the entire enterprise and address all of the
enterprise's resources; support cross-functional integration
3-tier architecture of ERP system - CORRECT-ANSWERS1. presentation layer - what
users see
2. application layer - number-crunching
3. database layer - where raw data is inputted
QUESTIONS AND ANSWERS 2025
accounting information system (AIS) - CORRECT-ANSWERSa system that collects,
records, stores, and processes business data to produce information for decision
makers
decision makers - CORRECT-ANSWERSinternal users - management, employees
external users - stockholders, creditors, customers, government, financial institutions
the accounting process - CORRECT-ANSWERS1. capture transaction data on source
documents
2. journalize transactions
3. post transactions to ledger
4. prepare trial balance
,5. journalize and post adjusting entries
6. prepare adjusted trial balance
7. prepare financial statements
8. journalize and post closing entries
9. prepare post-closing trial balance
problems with the traditional view of accounting - CORRECT-ANSWERS-
transactions-oriented as opposed to events-oriented
- narrow focus on financial data
- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
, 2 forms of computerized bookkeeping - CORRECT-ANSWERS1. COBOL (Common
Business-Oriented Language) - custom built for each firm
2. accounting software package - off the shelf
the database approach - CORRECT-ANSWERSstore all business data in one place,
one time, in its most disaggregated form; events-oriented
enterprise wide repository - CORRECT-ANSWERSstorage of all entity and event data
in a single integrated repository
ERP system - CORRECT-ANSWERSspan the entire enterprise and address all of the
enterprise's resources; support cross-functional integration
3-tier architecture of ERP system - CORRECT-ANSWERS1. presentation layer - what
users see
2. application layer - number-crunching
3. database layer - where raw data is inputted
