Exam 2: Role and Purpose of Accounting Information Systems

Which of the following elements of the conceptual framework fit within the same category?

List and discuss two similarities and two differences between AIS and other areas of accounting.

Which generic element of the AIS is focused on master files, transaction files and junction files?

AIS study sometimes involves questions with deterministic answers.Which of the following questions is most likely to have a deterministic answer?

Bumble Beasley was preparing a paper for his AIS course that explained the connections between the definition of AIS and the generic elements of the AIS.He created the pairings listed in the table below:

Eugene is a self-employed business owner.In February 2011, he gathered together his income and expense records for 2010.He used them, along with appropriate software, to prepare his tax return, which he then transmitted to the Internal Revenue Service.Has Eugene used an accounting information system based on the definition provided in the text?

Studying AIS helps students understand business processes from an accounting perspective.Which of the following activities would commonly be associated with the financing process?

Which UMUC evaluation criterion is indicated by each of the following questions? a.Can you establish the writer's credentials? b.Can you tell when the source was created/written? c.Can you tell who created the information? d.Does the information contain advertising? e.Does the information contain any obvious errors of fact? f.Does the source cover the subject with sufficient depth? g.Does the source tell you where the information came from? h.Is the information available freely? i.Is the source still under construction? j.When was the last time the source was updated?

An accounting information system comprises five generic parts.Which of the following gives an example of an internal control associated with the financing process?

According to the University of Maryland's University College, information should be evaluated based on ___ criteria.

An accounting information system is a set of interrelated:

For each independent case below: (1) indicate which source better fulfills the indicated UMUC criterion for information evaluation AND (2) circle the phrase that led you to your decision. a.Objectivity: i.A Wall Street Journal article about financial statement fraud cases, written by an investigative reporter whose contact information is provided ii.A presentation on financial statement fraud cases, given by an experienced independent consultant to prospective clients b.Accuracy: i.A web site that correctly defines six elements of financial statements from the FASB Conceptual Framework ii.An article that accurately gives examples of four constraints from the FASB Conceptual Framework c.Authority: i.A presentation delivered by a retired IRS agent on tax fraud ii.An attorney's web site recommending strategies for avoiding tax audits d.Currency: i.A web site last modified in 2010 that gives examples of internal controls for international companies ii.A 2009 article in a practitioner journal that gives examples of how companies are implementing international financial reporting standards e.Coverage: i.An article titled "Elements of the Balance Sheet" that explains (only) the difference between current assets and plant assets ii.An article titled "Emerging Technologies in Accounting" that briefly discusses three new technologies used by a single company

Which generic AIS element is exemplified by each item below? a.Balance sheet b.Customer's check c.General ledger software d.Requiring two signatures on checks over $500 e.Sales invoice f.Sales transaction file g.Spreadsheet software h.Statement of cash flows i.Storing accounting records in a locked filing cabinet j.Vendor master file

VTR Corporation's accounting information system recently reported the following information: Cost of goods sold, $1,500.Inventory, $15,000.Unearned service fees, $3,000.Service fees earned, $8,000.Which element of financial statements is not included in the preceding data?

Accounting information systems is an important area of study for future accountants because: (i) Developing a strong accounting information system helps achieve some of the components of the FASB Conceptual Framework of Accounting, (ii) Studying AIS helps students develop many of the core competencies suggested by the AICPA, (iii) Acquiring knowledge about AIS helps students learn more about common business processes.