ACC 406 Final Exam with verified detailed ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
solutions
accounting information system (AIS) - correct answer✔✔a system that collects, records, ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
stores, and processes business data to produce information for decision makers
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
decision makers - correct answer✔✔internal users - management, employees ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
external users - stockholders, creditors, customers, government, financial institutions
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the accounting process - correct answer✔✔1. capture transaction data on source documents
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2. journalize transactions
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3. post transactions to ledger
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4. prepare trial balance
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5. journalize and post adjusting entries
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
6. prepare adjusted trial balance
||\\//|| ||\\//|| ||\\//|| ||\\//||
7. prepare financial statements
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8. journalize and post closing entries
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
9. prepare post-closing trial balance
||\\//|| ||\\//|| ||\\//|| ||\\//||
problems with the traditional view of accounting - correct answer✔✔- transactions-oriented ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
as opposed to events-oriented
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- 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 answer✔✔1. COBOL (Common Business-
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Oriented Language) - custom built for each firm ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
2. accounting software package - off the shelf
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the database approach - correct answer✔✔store all business data in one place, one time, in
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
its most disaggregated form; events-oriented
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enterprise wide repository - correct answer✔✔storage of all entity and event data in a single ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
integrated repository
||\\//|| ||\\//||
ERP system - correct answer✔✔span the entire enterprise and address all of the enterprise's
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
resources; support cross-functional integration
||\\//|| ||\\//|| ||\\//|| ||\\//||
3-tier architecture of ERP system - correct answer✔✔1. presentation layer - what users see
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
2. application layer - number-crunching
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3. database layer - where raw data is inputted
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
data - correct answer✔✔raw, unprocessed facts, that are useless without further processing
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
information - correct answer✔✔data made meaningful ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
characteristics of useful information - correct answer✔✔- relevant ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
- reliable ||\\//||
- complete ||\\//||
- timely ||\\//||
, - understandable
||\\//||
- verifiable
||\\//||
bit - correct answer✔✔binary digit that can take a value of 0 (turned off) or 1 (turned on)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
byte - correct answer✔✔a group of bits (usually 8)
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field - correct answer✔✔a group of related bytes
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records - correct answer✔✔a group of related fields ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
file - correct answer✔✔a group of logical records
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
database - correct answer✔✔a collection of logically related files ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
numeric field - correct answer✔✔used to store integers and real numbers ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
text (alphanumeric) field - correct answer✔✔can store any keyboard character
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
currency field - correct answer✔✔used for monetary values ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
date/time field - correct answer✔✔can store date only, time only, or both date and time ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
boolean field - correct answer✔✔can have only 1 of 2 possible values (i.e. true/false)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
solutions
accounting information system (AIS) - correct answer✔✔a system that collects, records, ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
stores, and processes business data to produce information for decision makers
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
decision makers - correct answer✔✔internal users - management, employees ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
external users - stockholders, creditors, customers, government, financial institutions
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the accounting process - correct answer✔✔1. 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 answer✔✔- 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 answer✔✔1. COBOL (Common Business-
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Oriented Language) - custom built for each firm ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
2. accounting software package - off the shelf
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the database approach - correct answer✔✔store all business data in one place, one time, in
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
its most disaggregated form; events-oriented
||\\//|| ||\\//|| ||\\//|| ||\\//||
enterprise wide repository - correct answer✔✔storage of all entity and event data in a single ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
integrated repository
||\\//|| ||\\//||
ERP system - correct answer✔✔span the entire enterprise and address all of the enterprise's
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
resources; support cross-functional integration
||\\//|| ||\\//|| ||\\//|| ||\\//||
3-tier architecture of ERP system - correct answer✔✔1. presentation layer - what users see
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
2. application layer - number-crunching
||\\//|| ||\\//|| ||\\//|| ||\\//||
3. database layer - where raw data is inputted
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
data - correct answer✔✔raw, unprocessed facts, that are useless without further processing
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
information - correct answer✔✔data made meaningful ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
characteristics of useful information - correct answer✔✔- relevant ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
- reliable ||\\//||
- complete ||\\//||
- timely ||\\//||
, - understandable
||\\//||
- verifiable
||\\//||
bit - correct answer✔✔binary digit that can take a value of 0 (turned off) or 1 (turned on)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
byte - correct answer✔✔a group of bits (usually 8)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
field - correct answer✔✔a group of related bytes
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
records - correct answer✔✔a group of related fields ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
file - correct answer✔✔a group of logical records
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
database - correct answer✔✔a collection of logically related files ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
numeric field - correct answer✔✔used to store integers and real numbers ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
text (alphanumeric) field - correct answer✔✔can store any keyboard character
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
currency field - correct answer✔✔used for monetary values ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
date/time field - correct answer✔✔can store date only, time only, or both date and time ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
boolean field - correct answer✔✔can have only 1 of 2 possible values (i.e. true/false)
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
