Exam 2: Role and Purpose of Accounting Information Systems

Most accounting information systems comprise five parts.Which of the following must be used as a processing tool in the AIS?

Thuy is an accountant at RPA Corporation.When RPA sells inventory, Thuy receives a sales invoice indicating the number of units sold, the sales price, sales tax assessed and the total amount paid by the customer.Thuy makes a journal entry using general ledger software.At the end of each quarter, Thuy prepares RPA's general-purpose financial statements, as well as a comparison of budgeted sales to actual sales.The general-purpose financial statements are sent to the SEC, while the budgeted-to-actual comparison is reviewed by RPA's management.From the preceding paragraph, give one example of each of the following elements from the definition of AIS presented in the text: a.Activity b.Data c.Document d.External decision maker e.Information f.Internal decision maker g.Processing h.Technology

The components of an accounting information system are designed to collect ___ and report ___.

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the conceptual framework.Which of the following statements is most true?

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes three examples of the same file type?

Which of the following statements best demonstrates a difference between AIS and other areas of study in accounting?

Indicate whether each of the following statements is: (a) always true, (b) sometimes true or (c) never true.1.AIS outputs are important only in AIS and financial accounting.2.An accounting information system can determine materiality without human intervention.3.Financial accounting can involve unstructured problems.4.Internal controls cut across many areas of accounting study.5.The objective of an accounting information system is to report true financial data.

Storage is one generic element of the AIS; the text explains that data stored electronically often are grouped into three types of files.Which of the following includes one example of each file type?

Which generic element of the AIS is most closely associated with each of the following questions? a.Beyond the general-purpose financial statements, what other reports will managers and system users need? b.How many copies of each source document will be required? c.How should the AIS be designed to facilitate the production of other reports? d.If computer-based tools are used in the AIS, which software and hardware packages should be implemented? e.Should AIS tools be manual, computer-based or both? f.Under what conditions can/should data be destroyed? g.What behavioral effects are controls likely to have? h.What controls are necessary to promote information integrity in the AIS? i.What kinds of source documents will system users need? j.Where should data be stored?

Which of the following best explains the idea of "currency," as the term is used in evaluating information?

UMUC identified several criteria for evaluating information.Which of the following statements is most true?

The generic elements of an AIS include inputs and outputs.Which of the following statements about them is most true?

Ahmed was writing a paper summarizing three processes common in most organizations; his specific focus was on for-profit manufacturing organizations.In terms of the UMUC criteria for information evaluation, Ahmed's paper is most likely to violate:

You have been hired as a consultant to design and implement a new accounting information system for PRI Corporation.Explain how you would structure the AIS.Give two examples of each structural element; also indicate one question you would ask PRI's management to assist in your work.(Do not use examples and questions listed in the text.)

Which of the following best summarizes "authority," as the term is used in information evaluation?

In management accounting, students learn to prepare budgets, calculate cost variances and interpret those variances.Which of the following best links those topics with AIS study?

An accounting information system is defined by the text as a set of three interrelated elements.Which of the following choices best gives an example of each element?

In contrast with other areas of accounting, AIS more frequently involves problems with non-deterministic answers.Which questions in the list below have non-deterministic answers? a.How do you calculate depreciation using the straight-line method? b.How many accountants should ITI Corporation hire? c.Should ITI Corporation expand its operations to other countries? d.Should ITI Corporation reconcile its bank statement at least once a month? e.Should ITI Corporation use Quickbooks or Peachtree for transaction processing? f.Should Thai use information from textbooks as one source in a paper for her AIS course? g.What is the journal entry to record a cash sale? h.Which inventory cost flow assumption (FIFO, LIFO) does ITI Corporation use? i.Which local bank should ITI Corporation do business with? j.With respect to financial reporting, is relevance more important than reliability?

The generic structure of most accounting information systems comprises ___ elements.

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following pairs a generic element of the AIS with a specific example from financial accounting?