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Flashcards in Final Exam Deck (61):
1

Most organizations use purchase orders to authorize inventory and other purchases. If a company's purchase order contains a column labeled product code, it most likely uses what kind of coding?

Mnemonic

2

Information should be evaluated based on --- criteria

5

3

Which generic element of the AIS is focused on master files, transaction files and junction files?

Storage

4

Define AIS

A set of interrelated activities, documents, and technologies designed to collect data, process it, and report information to a diverse group of internal and external decision makers in organizations

5

5 elements of the AIS structure

Inputs
Processes
Outputs
Storage
Internal controls

6

Includes documents such as sales invoices and purchase orders

Inputs

7

Includes computers and satellites

Processes

8

Includes general purpose financial statements as well as internal reports such as variance analyses

Outputs

9

Data stored in paper form, electronically, or a mix of both; if electronically, broken down in 3 broad file types; master files typically contain data about "things" such as inventory, customers, and vendors; transaction files usually focus on activities such as earning revenue and incurring expenses; junction files link other files together

Storage

10

Includes daily backup of data and separation of duties

Internal controls

11

Process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information

Accounting definition

12

That part of accounting devoted to identifying and measuring the economic information

Bookkeeping

13

Common internals controls associated with the accounting cycle

Sequential numbering
Physical security
Transaction limits

14

A method of efficiently aligning an organization with the wants and needs of clients is:

Business process management

15

Motivation is determined by what 3 factors? (Also the definition of expectancy theory)

Expectancy
Valence
Instrumentality

16

4 common chart of accounts coding systems

Sequential coding
Block coding
Hierarchical codes
Mnemonic codes

17

Numbers are assigned in blocks; each block is reserved for a particular kind of account; example: equity accounts all start with "5"

Block coding

18

Sophisticated form of block coding; each digit/block of digits conveys important information to people who know the code

Hierarchical codes

19

Help people remember the meaning of the code

Mnemonic codes

20

A process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations

Internal control

21

COSO definition of internal control:

It is a process
It necessarily involves people in the organization
It is designed to provide reasonable assurance
It provides reasonable assurance in a few common areas such as operations, financial reporting, and human behavior

22

4 Purposes of internal control

Safeguarding assets
Ensuring financial statement reliability
Promoting operational efficiency
Encouraging compliance with management's directives

23

COSO'S ERM 8 elements:

Internal environment
Objective setting
Event identification
Risk assessment
Risk response
Control activities
Information and communication
Monitoring

24

5 levels of the capability maturity model

Chaotic
Repeatable
Defined
Managed
Optimized

25

Give the user a "big picture" look at an information system

Systems flowcharts

26

Show the logic associated with a computer program

Program flowcharts

27

Show the various documents involved in a system; also portray procedures performed on those documents

Document flowcharts

28

Show the computers, printers, monitors, input devices, and other hardware elements associated with an information system

Hardware flowcharts

29

Unlike flowcharts, DFDs incorporate --- symbols

4

30

What is the organization of DFDs vs. flowcharts?

DFDs: leveled sets, each depicting more detail than the last

Flowcharts: columns representing areas of responsibility

31

Difference between DFD and flowchart formats

DFD processes are numbered in the following formats: level zero 1.0, level one 1.1, level two 1.1.1

Flowcharts: numbers can be used for on and off-page connectors, not for processes

32

Difference in focus for DFDs vs. flowcharts

DFDs: focus on data and how they move btwn business processes, external entities, and data stores

Flowcharts: are concerned with data, but also with documents and processing tools

33

Difference of lines in DFDs vs. flowcharts

DFDs: line represent data; they are labeled with noun phrases

Flowcharts: lines represent movement btwn processes, areas of responsibility, and the like; they are not labeled

34

REA models are organized in 3 columns. What are they?

Resources (left)
Events (middle)
Agents (right)

35

Define extensible as it relates to XBRL

X stands for extensible; the XBRL language is able to be extended; just like we now have words such as wifi and iPod in English, the XBRL language is extensible in that users can add new ideas and phrases to the basic XBRL w/o changing its fundamental purpose, structure, or existing terminology

36

Define specification in terms of XBRL

Specification is a particular example of a larger group; ex: California is a specification of the US; XBRL is a specification of XML

37

Define taxonomy in terms of XBRL

A taxonomy is a way to organize knowledge; the table of contents of a book is a taxonomy; assets, liabilities, and equity are taxonomies of a balance sheet

38

Define namespace in terms of XBRL

An XBRL dictionary; namespaces have internet addresses(URLs) just like web pages

39

Define instance document in terms of XBRL

Specific example of property tagged XBRL information

40

Different kinds of internal controls for e-businesses as opposed to brick and mortar

Customer identity authentication via usernames and passwords
Control number input requirement
Billing address must match credit card address
Secure server

41

Name 5 taxonomies or e-business categories

Business to consumer
Business to business
Govt. to consumer
Govt. to business
Consumer to consumer

42

Define business to consumer

Purchasing online

43

Define consumer to consumer

Transactions associated with eBay

44

Define business to business

When two organizations do business over a computer network; ex: university bookstore may use e-business techniques to order textbooks from publishers each semester

45

Define govt. to consumer

Ex: IRS

46

Define govt. to business

EDGAR (SEC)

47

A modular, relational database designed to provide internal organizational stakeholders with more timely, comprehensive information for decisions

Enterprise resource planning system

48

Enterprise resource planning system is --- in nature

Relational

49

Typical models in an ERP system include

Financial management
Supply chain management
HR management
Customer relationship management

50

Risks to information systems

Fraud
Error
Service interruption delays
Disclosure of confidential information
Intrusions
Information theft
Information manipulation
Malicious software
Denial-of-service attacks
Website defacement
Extortion

51

7 types of computer criminals

Script kiddies
Hackers
Cyber-criminals
Organized crime
Corporate spies
Terrorists
Insiders

52

The protection of data in a system against unauthorized disclosure, modification, or destruction, and protection of the computer system itself against unauthorized use, modification, or denial of service

Information security

53

Information security is based on what 3 fundamental principles?

Confidentiality
Data integrity
Availability

54

3 IT controls

Physical
Technical
Administrative

55

Sales/collection process purpose

To provide goods and services to clients and to collect payment from them

56

Acquisition/payment process purpose

To obtain the resources The organization needs and to pay for them

57

Acquisition/payment process steps in order

Request goods and services based on monitor need
Authorize a purchase
Purchase goods/services
Receive goods/services
Disburse cash
When necessary, process purchase returns

58

Conversion process purpose

To convert direct material, direct labor, and manufacturing overhead into a finished product

59

When units of product are differentiated from one another
I.E.: custom-built homes

Job costing

60

Produced undifferentiated goods (can't tell them apart)

Process costing

61

Internal controls based on common risk exposures

Thorough background checks
Forced vacations
Adequate training and supervision