Question 1

The web site for Dell Computers is an example of ___ information.

Accepted Answer

The web site for Dell Computers is an example of sponsored/commercial information as it is a site that promotes and sells Dell products.

Question 2

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name.
-In the preceding scenario, ___ was both an input and an output.

Accepted Answer

The answer of Sebastian wrote a check to pay a...

Question 3

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name.
-Filing the check under the supplier's name is an example of:

Accepted Answer

:

Question 4

AIS and other areas of accounting - Indicate whether each of the following statements regarding accounting information systems is (a) always true, (b) sometimes true or (c) never true. You do not need to write a justification for the statements that are sometimes true.
1. A well designed accounting information system can help fulfill some elements of the FASB Conceptual Framework.
2. Accounting information systems problems are often open-ended.
3. All areas of accounting can involve problems with deterministic responses.
4. All problems in accounting information systems involve every area of accounting.
5. Because many AIS problems don't have one right answer, those same problems don't have any wrong answers either.
6. Other areas of accounting, such as financial and managerial accounting, do not involve open-ended problems.
7. Problems in accounting information systems do not have deterministic responses.
8. Solutions to problems in AIS and other areas of accounting always involve the use of information technology.
9. The general-purpose financial statements link accounting information systems with other areas of accounting.
10. The study of internal controls can link accounting information systems with other areas of accounting.

Accepted Answer

The answer of AIS and other areas of accounting -...

Question 5

Elements of the AIS - Most accounting information systems comprise five components; they are listed below, along with examples of each from the text. In the space provided, provide one additional example of each element. $$\begin{array} { | l | l | l | } 
\hline \text { Input } & \begin{array} { l } 
\text { Purchase order, } \
\text { sales invoice }
\end{array} &\quad\quad\quad\quad\quad\quad\
\hline \text { Process } & \begin{array} { l } 
\text { Computer hardware, } \
\text { satellites }
\end{array} & \
\hline \text { Output } & \begin{array} { l } 
\text { General-purpose financial } \
\text { statements, variance analyses }
\end{array} & \
\hline \text { Storage } & \begin{array} { l } 
\text { Cash register, computer hard } \
\text { drive }
\end{array} & \
\hline \text { Internal control } & \begin{array} { l } 
\text { Data backups, separation of } \
\text { duties }
\end{array} & \
\hline
\end{array}$$

Accepted Answer

The answer of Elements of the AIS - Most accounting...

Question 6

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name.
-The internal controls mentioned in the preceding scenario are:

Accepted Answer

The dual signatures on the check ensure that two authorized individuals approve the payment. The bank reconciliation verifies that the check was properly recorded and that there are no discrepancies. Therefore, the dual signatures on the check and the bank reconciliation are the internal controls mentioned in the scenario. The file and the supplier's invoice are not internal controls.

Question 7

Which type of information would be most useful in deciding whether or not to create a wireless network as part of an accounting information system?

Accepted Answer

Practitioner information would be most useful in deciding whether or not to create a wireless network as part of an accounting information system. This type of information provides real-world experience and practical advice on the benefits and risks of implementing a wireless network in an accounting setting. Scholarly information may provide theoretical insights but is not as practical as practitioner information. Sponsored/commercial information may be biased towards promoting wireless networks and may not present all the risks involved. Cultural information may be irrelevant to the decision-making process.

Question 8

Internal controls such as ____ help promote information reliability in the accounting information system.

Accepted Answer

Bank reconciliations are an internal control that helps ensure the accuracy and reliability of financial information by comparing the company's records with bank statements to identify and correct discrepancies.

Question 9

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name.
-The inputs mentioned in the preceding scenario are

Accepted Answer

The inputs in the scenario are the check and the invoice, as they are the initial documents used to process the payment.

Question 10

Information evaluation criteria - Bumble Beasley took two introductory accounting courses as part of his college degree; his major was engineering. He started his own engineering consulting company and later published an article in an engineering journal titled "The Relationship between Engineering and the FASB Conceptual Framework." The article, which contained no references to other documents, discussed five elements of financial statements and referred readers to Bumble's web site. His web site featured an "under construction" icon; its primary purpose was to obtain consulting clients for Bumble's firm.
Based on the preceding scenario, identify one phrase/sentence that violates each of the following criteria for evaluating information. For example, "discussed five elements of financial statements" violates the "accuracy" criterion since the conceptual framework discusses eight elements. $$\begin{array} { | l |l| } 
\hline \text { Authority } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\
\hline \text { Accuracy } \
\hline \text { Objectivity } \
\hline \text { Currency } \
\hline \text { Coverage } \
\hline
\end{array}$$

Accepted Answer

The answer of Information evaluation criteria - Bumble Beasley took...

Question 11

Which of the following is a fact about accounting information systems?

Accepted Answer

Accounting information systems involve multiple parts that are interrelated, such as data input, processing, storage, and output. While computers are commonly used in modern accounting information systems, it is not a requirement. Accounting information systems also report non-financial information when necessary, and while they provide important information for decision making, they are not the sole source of information. Therefore, choice D is the only factually correct statement about accounting information systems.

Question 12

Source documents in an accounting information system include sales invoices, purchase orders and:

Accepted Answer

Bank statements are a source of information for recording transactions involving cash transactions, such as deposits or withdrawals. They provide information on the beginning and ending balances, deposits, withdrawals, and other transactions that affect a company's bank account. Therefore, bank statements are an important source document in an accounting information system.

B) Reports of projected stock prices are not source documents in an accounting information system as they do not provide information on transactions that actually occurred.

C) Evaluations of accounting staff are not source documents in an accounting information system as they do not provide any transaction-related information.

D) Currency and coin are not source documents in an accounting information system. While they are used in financial transactions, they do not provide information on the specific details of a transaction that would be recorded in an accounting system.

Question 13

"Coverage" is one basis for evaluating Internet information in the list developed by the University of Maryland. Which of the following statements on a web site would cause you to question its coverage?

Accepted Answer

This statement indicates that the website is not complete and may not cover all aspects of the topic.

Question 14

Conceptual framework - The FASB Conceptual Framework links accounting information systems with other areas of accounting, such as intermediate accounting and auditing. The first level of the conceptual framework explains the objective of financial reporting; the second level discusses elements of financial statements and qualitative characteristics. The framework's third level presents twelve fundamental accounting ideas (listed below), organized in three categories. Identify each category with its proper name from the conceptual framework, then organize the ideas based on the three categories. Use the grid provided for your answers.
$\begin{array}{ll}
\text { Conservatism } & \text { Industry practices } \
\text { Cost effectiveness } & \text { Matching } \
\text { Economic entity } & \text { Materiality } \
\text { Full disclosure } & \text { Monetary unit } \
\text { Going concern } & \text { Periodicity } \
\text { Historical cost } & \text { Realization }
\end{array}$

$$\begin{array} { | l | l | l | } 
\hline \text { Category name: } & \text { Category name: } & \text { Category name: } \\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
\hline &  & \
\hline & & \
\hline & & \
\hline & & \
\hline
\end{array}$$

Accepted Answer

The answer of Conceptual framework - The FASB Conceptual Framework...

Question 15

AIS definition - Use terms from the following list to fill in the blanks in the definition of accounting information systems:
Activities
Data
Decision makers
Diverse
Documents
Information
Interrelated
Technologies

An accounting information system is a set of ___ ___, ___ and ___ designed to collect ___, process it and report ___ to a ___ group of internal and external ___ in organizations.

Accepted Answer

The answer of AIS definition - Use terms from the...

Question 16

Accounting information system definition - According to the text, an accounting information system is 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. Consider that definition in light of the following scenario:
A local video store purchases multiple copies of popular movies and television series by issuing electronic purchase orders. When the movies come in, a clerk fills out a receiving report and puts the movies on the shelves by category (e.g., all the comedies together). Each copy of each movie receives a bar code that identifies it for inventory purposes. When a client selects a movie to rent, a clerk scans the bar code; the company's information system updates its database. The client receives an invoice noting the title of the video, the rental date, the clerk's name and the due date. At the end of each month, the store manager downloads the rental and purchase information and transmits it to the store's accountant. The accountant prepares a monthly income statement, balance sheet and bank reconciliation and sends them back to the store within three days. The store manager reviews all three with the employees.
Analyze the video store's accounting information system by identifying two examples of each item in the grid below. Record your answers in the spaces provided. $\begin{array}{|l|l|l|}
\hline \text { Activities } &\quad\quad\quad\quad\quad&\quad\quad\quad\quad\quad \
\hline \text { Data } & \
\hline \text { Decision makers }\
\hline \text { Documents}\
\hline \text { Information}\
\hline \text { Technologies}\
\hline  
\end{array}$

Accepted Answer

The answer of Accounting information system definition - According to...

Question 17

AIS structure - Ben and Uma own and operate Framing World, a company that frames diplomas, professional certificates and other documents. Customers bring in the documents they want framed; Ben or Uma fills out a sales order noting the client's information (name, address and so on), the type of document to be framed and the details of the framing itself (such as the type and color of frame). They also scan the document to the store's internal computer network for reference purposes. Most documents are framed by hand, but Framing World also uses some specialized equipment for more complex jobs. The company maintains its accounting records in a general ledger system; the firm's accountant prepares monthly reports, such as income statements and bank reconciliations, using spreadsheets and word processing software. Work in process and finished goods inventory are kept secure with alarm systems and video surveillance.
Accounting information systems typically comprise five elements. Analyze the preceding narrative by identifying specific examples of each element. Record your responses in the grid below. $$\begin{array} { | c | c | } 
\hline \text { AIS element } & \text { Example from Framing World } \
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}$$

Accepted Answer

The answer of AIS structure - Ben and Uma own...

Question 18

Importance of AIS study - Accounting information systems is important because it helps students develop their ability to respond to open-ended problems. Which of the following are open-ended? Place an "X" in the appropriate column.

$\begin{array}{|l|l|l|}
\hline &\text { Yes } & \text { No } \
\hline \text { 1. Choosing software for an accounting information system } & \
\hline \text { 2. Deciding how to store data in an accounting information system } & & \
\hline \text { 3. Defining the qualitative characteristics of accounting information } & & \
\hline \text { 4. Developing an internal control system } & & \
\hline \text { 5. Evaluating a customer's credit application } & & \
\hline \text { 6. Identifying the elements of financial statements } & & \
\hline \text { 7. Listing the assumptions associated with the FASB conceptual } & \
 \text { framework } & & \
\hline \text { 8. Making a journal entry to record a cash sale } & & \
\hline \text { 9. Preparing a trial balance } & & \
\hline \text { 10.Writing a check }\
\hline  
\end{array}$

Accepted Answer

The answer of Importance of AIS study - Accounting information...

Question 19

Evaluating sources of information - Bumble Beasley's accounting information systems professor assigned a paper on methods for safeguarding inventory. In his research, Bumble identified five sources of information, described in the table below: $\begin{array}{|l|c|c|c|c|c|}
\hline&1&2&3&4&5\
\hline \text { Format } & \begin{array}{c}
\text { Web } \
\text { page }
\end{array} & \begin{array}{c}
\text { Practitioner } \
\text { journal }
\end{array} & \begin{array}{c}
\text { Scholarly } \
\text { journal }
\end{array} & \begin{array}{c}
\text { Consultant's } \
\text { report }
\end{array} & \text { Textbook } \
\hline \text { Date } & 2005 & 2004 & 2003 & 1998 & 2006 \
\hline \text { Author(s) } & \text { Unknown } & \text { Auditor } & \begin{array}{c}
\text { Management } \
\text { professor }
\end{array} & \begin{array}{c}
\text { Self-employed } \
\text { consultant }
\end{array} & \begin{array}{c}
\text { CPA and } \
\text { accounting } \
\text { professor }
\end{array} \
\hline
\end{array}$
 The assignment directions clearly state that Bumble may use no more than three sources for the paper, and Bumble has decided to use the University of Maryland evaluation criteria (authority, accuracy, objectivity, currency and coverage) as the basis for his selection. Which three of the five sources should Bumble use? For the other two sources, which University of Maryland criteria made them undesirable?

Accepted Answer

The answer of Evaluating sources of information - Bumble Beasley's...

Question 20

A fellow student in one of your classes struck up a conversation one day. "What's your major," he asked. "Accounting," you replied. "Wow I've heard accounting is a tough major. What accounting classes are you taking this term?" You started talking about your accounting information systems course, and your friend asked you the question(s) noted below. Prepare a written response for your friend.
-You mention to your friend that AIS study often requires significant amounts of research, and that you're learning how to differentiate and evaluate information you find on the Internet. Distinguish the three types of information discussed in the text.

Accepted Answer

The answer of A fellow student in one of your...

Quiz 1: Rolse and Purpose of Accountig Information Systems

The web site for Dell Computers is an example of ___ information.

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name. -In the preceding scenario, ___ was both an input and an output.

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name. -Filing the check under the supplier's name is an example of:

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name. -The internal controls mentioned in the preceding scenario are:

Which type of information would be most useful in deciding whether or not to create a wireless network as part of an accounting information system?

Internal controls such as ____ help promote information reliability in the accounting information system.

Sebastian wrote a check to pay a supplier's invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier's name. -The inputs mentioned in the preceding scenario are

Which of the following is a fact about accounting information systems?

Source documents in an accounting information system include sales invoices, purchase orders and:

"Coverage" is one basis for evaluating Internet information in the list developed by the University of Maryland. Which of the following statements on a web site would cause you to question its coverage?