1. What is data? What is information? (p.10)
Data are facts, which may or may not be processed and have no direct effect on a user’s actions. Information causes the user to take an action that he or she otherwise could not, or would not have taken.
2. List tasks of database management. (p.12)
Three database management tasks are data storage, data retrieval, and data deletion.
3. What services could not public accountings provide with their audit clients? (p.22) There are:
Bookkeeping or other services related to the accounting records or financial statements of the audit client; Financial information systems design and implementation;
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports; Actuarial services;
Internal audit outsourcing services;
Management functions or human resources;
Broker or dealer, investment adviser, or investment banking services; Legal services and expert services unrelated to the audit;
Any other service that the Board determines, by regulation, is impermissible.
4. List the three categories of cloud computing. (p.20)
There are: software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS).
5. Accuracy is a characteristic of information generation. What does it mean? (p.12) It means that the information must be free from material errors. Quiz Chapter 2
1. Does every business organization have a conversion cycle? (p.33) Yes. Conversion cycle is not usually formal and observable in service and retailing establishments, but they do exist. Conversion cycle activities include readying of products and services for market and allocation of resources such as depreciation, building amortization, and prepaid expenses to the proper accounting period.
2. Why do we use different “classes” of journals in accounting? (p. 35-37) We have two classes of journals: special journals and general journals. Special journals are used to record specific...