Exam 2: Role and Purpose of Accounting Information Systems

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of AIS storage with information you would expect to find in it?

Claudia borrowed money from her bank, signing a five-year note payable.She then calculated the monthly payment needed to pay off the loan within three years.Based on the definition of an accounting information system provided in the text, the five-year note payable could be considered: (i) an input, (ii) an output, (iii) a document.

Which of the following statements about AIS is most true?

AIS is an important area of study for future accountants because a well-designed AIS can respond to many elements of the FASB Conceptual Framework.List the parts of the FASB Conceptual Framework.(You do not need to list the items in each part.)

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of an AIS output with information you would expect to find in the output?

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

Which of the following exemplifies "materiality" as the term is used in the FASB conceptual framework?

Studying AIS helps students understand business processes from an accounting perspective.Which of the following general ledger accounts would be unique to a company with a conversion process?

The accounting staff at NSR Corporation have compiled a list of risks the company needs to address for its information technology; they plan to prepare a report recommending internal controls that address each risk.They have located the five sources of information listed below, but want to use no more than three in their report.Use the UMUC criteria to explain which sources they should use. a.A software documentation manual for the general ledger system used at NSR Corporation.The manual contains a section on troubleshooting the software, which briefly discusses common risks and problems associated with its installation.The manual's title page lists the software company as its author. b.A web site, first published in 2009 and last updated in 2014, for an information technology consulting firm.The web site lists and discusses twenty common internal controls for information technology based on the firm's past clients. c.An article published in Information Security, a practitioner journal.The article, published in 2013, was co-authored by a university professor and the chief information officer of a Fortune 100 corporation.It analyzes five common internal controls for information technology, including a description of each control, the costs of implementing it and the benefits of implementing it. d.The American Institute of CPAs list of "top ten technologies" for 2014, published on the AICPA web site.The list was developed via a survey of practicing CPAs throughout the United States; it includes several items related to information technology control, and also provides suggestions about where to find additional information. e.The third edition of a management information systems textbook.It was published in 1999 and includes two chapters on information technology security.The textbook was written by a team of three authors: one information systems auditor with three years' experience, and two university professors with advanced degrees but little experience. C.The particular strength of A is its authority, since it was written by the software company.C's greatest strengths are objectivity and currency.D may be an acceptable source as well.

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.The supervisor's review could best be described as which generic element of the AIS?

JPS Corporation's accounting information system includes sales invoices, general ledger software, spreadsheets and customer files.JPS is careful to maintain adequate separation of duties as well.To provide one example of each generic element of the AIS, that list should replace ___ with ___.

In your own words, define "accounting information system."

Gloria wrote a paper on the AICPA core competencies for her accounting information systems class.She organized the paper in three main parts: broad business perspective competencies, functional competencies, conceptual framework competencies.In terms of the UMUC criteria for information evaluation, which of the following statements is most true?

The vice president for customer service of First United Bank determined that Lee had overpaid his mortgage.The bank sent Lee a letter asking him if he wanted a refund of the overpayment or if he wanted to apply it to future mortgage payments.Has the vice president for customer service used an accounting information system based on the definition provided in the text?

Accounting information systems is an important area of study for future accountants because a well-designed AIS can respond to many elements of the FASB Conceptual Framework.All of the following are parts of the conceptual framework except:

The AICPA Core Competency framework comprises three parts.Which of the following best pairs a specific competency with the correct part?

Ethan is an accountant for a small startup business.He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions.He is therefore making a decision about which generic element of the AIS?

AIS is an important area of study for future accountants, since a well-designed AIS can respond to many elements of the FASB Conceptual Framework.Indicate which element of financial statements from the FASB Conceptual Framework best describes each item below. a.Accounts payable b.Cash c.Common stock d.Cost of goods sold e.Depreciation expense f.Interest earned g.Inventory h.Loss on sale of land i.Retained earnings j.Sales

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 about qualitative characteristics of accounting information is most true?

Which of the following is an example of an AIS output?