Exam 1: Rolse and Purpose of Accountig Information Systems

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. -List and discuss three ways accounting information systems is related to other areas of accounting.

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. -Your friend works at a local retail store. Use the five generic parts of most accounting information systems to demonstrate how AIS concepts would be applied in your friend's job.

System outputs in an AIS include the general-purpose financial statements, variance analysis reports and:

Problems in accounting information systems are often less likely to have deterministic answers than problems in other areas of accounting. Which of the following questions has a deterministic answer?

Accounting information systems typically incorporate which of the following: (i) inputs, (ii) outputs, (iii) storage.

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.

Recently, Bumble Beasley was researching information published in 1985. Which of the following topics would he most likely consider "non-current" in his research?

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. Input Purchase order, sales invoice Process Computer hardware, satellites Output General-purpose financial statements, variance analyses Storage Cash register, computer hard drive Internal control Data backups, separation of duties

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. -Your friend said: "I thought accounting was all about numbers and columns, but your AIS class sounds different than that." Explain to your friend why the study of accounting information systems is important for future accountants.

Consider the following two statements about accounting information systems: (i) AIS incorporates more problems with deterministic solutions than other areas of accounting. (ii) AIS is more integrative than other areas of accounting. Which of the statements is/are true?

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

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

What type of information involves paying a fee to have it published on the Internet?

Which of the following questions is most likely to result in a deterministic answer?

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.

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. Authority Accuracy Objectivity Currency Coverage

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. Conservatism Industry practices Cost effectiveness Matching Economic entity Materiality Full disclosure Monetary unit Going concern Periodicity Historical cost Realization Category name: Category name: Category name:

Which of the following do all areas of accounting have in common?

Evaluating information reliability is part of:

Accounting information systems are designed to: