Exam 1: Accounting Information Systems: an Overview

How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?

What is the purpose behind the five primary activities in the value chain?

Why have accounting software packages been designed with separate transaction modules?

Robinson Crusoe has formed a business that sells carved gourmet coconuts.He has hired five employees.The most senior is Friday,who manages the carving process.Monday is the newest employee.She collects the coconuts.Tuesday,as you might expect,takes calls from curstomers,oops,I mean customers,who are unhappy with their coconuts.Wednesday tosses finished coconuts into the sea,whereupon they drift to the wholesaler.Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay.Which of the following functions in the value chain is Monday performing?

How can an AIS add value to the organization?

Explain what an AIS is,describe the basic tasks it performs in an organization,and give some examples of the types of accounting transactions it processes.

The value of information can best be defined as

Data must be converted into information to be considered useful and meaningful for decision-making.There are six characteristics that make information both useful and meaningful.If information is free from error or bias and accurately represents the events or activities of the organization,it is representative of the characteristic of

Robinson Crusoe has formed a business that sells carved gourmet coconuts.He has hired five employees.The most senior is Friday,who manages the carving process.Monday is the newest employee.She collects the coconuts.Tuesday,as you might expect,takes calls from curstomers,oops,I mean customers,who are unhappy with their coconuts.Wednesday tosses finished coconuts into the sea,whereupon they drift to the wholesaler.Thursday sends smoke signals to the wholesaler extolling the virtues of the latest production run of nuts that are drifting across the bay.Which of the following functions in the value chain is Thursday performing?

Which of the following tradeoffs between characteristics of useful information is least objectionable?

In Chapter 1,Figure 1-4 shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is

Which of the following is not a key decision to be made when starting a business?

Define data,information,and how the value of information is determined.

Rolleigh Corp.identifies growth by new product development and product improvement as the number one corporate goal.An employee at Wrigley's,one of Rolleigh's wholly-owned subsidiaries,developed an innovation to an existing product that would directly address a shortcoming in the similar product offered by Rolleigh's closest competitor.Wrigley's current Return on Investment (ROI)is 15%,but the product innovation is expected to generate ROI of only 12%.Awarding bonuses to subsidiary managers based on ROI could result in:

Which of the following is not one of the components of an AIS?

Which of the following is not an example of a common activity in an AIS?

How can a well-designed AIS improve the efficiency and effectiveness of a company's value chain?

Jill Fredson is in charge of the mail room at Gammon University.Every Friday morning she receives a report via email that summarizes the number of outgoing and incoming pieces of mail by source and destination department.Every Friday afternoon,Jill deletes the report without reading it because it has no bearing on mail room operations.Which of the following characteristics of useful information is absent in the situation described above?

When the AIS provides information in a timely and accurate manner,it stands as an example of

An example of inbound logistics would consist of