Professional Documents
Culture Documents
Instructor Manual For Accounting Information Systems: A Business Process Approach Edition: 2nd by Frederick Jones (Author), Dasaratha Rama (Author) download pdf full chapter
Instructor Manual For Accounting Information Systems: A Business Process Approach Edition: 2nd by Frederick Jones (Author), Dasaratha Rama (Author) download pdf full chapter
https://testbankbell.com/product/solutions-manual-for-accounting-
information-systems-2nd-by-donna-kay-0132991322/
https://testbankbell.com/product/instructor-manual-for-
intermediate-accounting-11th-edition-by-loren-a-nikolai-john-d-
bazley-jefferson-p-jones/
https://testbankbell.com/product/accounting-information-
systems-2nd-edition-richardson-test-bank/
https://testbankbell.com/product/solution-manual-for-financial-
accounting-a-business-process-approach-3-e-3rd-edition-jane-l-
reimers/
Solution Manual for Accounting Information Systems 11th
Edition by Bodnar
https://testbankbell.com/product/solution-manual-for-accounting-
information-systems-11th-edition-by-bodnar/
https://testbankbell.com/product/test-bank-for-financial-
accounting-a-business-process-approach-3rd-edition-jane-l-
reimers/
https://testbankbell.com/product/solution-manual-for-business-
driven-information-systems-3rd-edition-by-baltzan/
https://testbankbell.com/product/accounting-information-systems-
the-crossroads-of-accounting-and-it-2nd-edition-kay-solutions-
manual/
https://testbankbell.com/product/accounting-information-systems-
the-processes-and-controls-turner-2nd-edition-solutions-manual/
Instructor Manual For Accounting Information
Systems: A Business Process Approach Edition: 2nd
Chapter 1
Introduction to Accounting Information Systems
REVIEW QUESTIONS
1.
An accounting information system (AIS) is a subsystem of an MIS that
provides accounting and financial information as well as other information,
obtained in the routine processing of accounting transactions. Examples of
information tracked by an AIS are wide-ranging, including information about
sales orders, sales in units and dollars, cash collections, purchase orders,
goods received, payments, wages, and hours worked.
A management information system (MIS) is a system that captures data about
an organization, stores and maintains the data and provides meaningful
information for management. A MIS includes other information related to
production, human resources, and marketing that is not part of the AIS.
2.
Accounting information is used to
• Prepare external reports.
• Handle routine activities of the business.
• Help managers make non-routine decisions.
• Help in planning and control.
• Maintain internal control.
3.
Applications are computer programs that are used to serve particular
purposes. Word-processing and electronic spreadsheet software are
examples of applications. Accounting applications provide the information
needed for the five uses described in response to the previous question.
4.
Off-the-shelf software is commercial software that is ready-made and
available for sale to the general public. An important advantage of using off-
the-shelf packages is that the amount of time and effort required to develop an
accounting system is low to the consumer. However, off-the-shelf packages
are not tailored to any one organization’s needs and may not satisfy all the
requirements of the organization. Some vendors of accounting software
reduce this problem by allow third-party developers, known as value-added-
resellers, to modify the software to meet specific customer needs.
5.
Answers will vary by student.
6.
Accountants are evaluators of accounting systems in the following roles:
7.
Production information that may have no direct bearing on accounting
balances include maintenance schedules, engineering designs, and
specification of components required for manufacturing different products.
Areas of overlap included parts inventory information such as re-order points,
quantity-on-hand and quantity committed to work-in-process, and the amount
of labor and materials used in production. Since most of this information would
be collected at the manufacturing facility, the production department would be
responsible for recording orders and receipts of inventory, as well as usage of
materials and labor. The accounting department may be responsible for
maintaining information about employees for payroll tax purposes, and certain
inventory information such as inventory costing method. It may also be
responsible using the material and labor usage information to track costs and
paying for the ordered items once received.
8.
Human resources information that would have no direct bearing on accounting
balances include sick days allowed and taken, vacation days allowed and
taken, insurance and retirement beneficiaries, accidents and injuries on the
job, insurance selection, job-title changes, results of drug testing, personnel
actions and schedules for interviewing and training. Areas of overlap include
pay rate, regular hours, over-time hours, amounts to be withheld for various
purposes such as insurance, income taxes, retirement and union dues. The
areas of direct overlap involve payroll and may be collected and recorded by
the accounting department. Of course, information recorded by human
resources is used in the accounting function for various calculations. For
example, human resources may provide the information to accrue vacation
pay and the amount of withholdings for insurance and retirement.
9.
As routine transaction processing becomes automated, accountants are
spending less time on routine functions thus reducing the need for clerical
support. Instead, they are leveraging their understanding of business
processes and data organization for strategic decision making and planning.
In addition, accountants are broadening the services that they perform. The
2004-2005 edition of Occupational Outlook Handbook, an important reference
in nearly every public library, states that “Beyond the fundamental tasks of the
occupation—preparing, analyzing, and verifying financial documents in order
to provide information to clients—many accountants now are required to
possess a wide range of knowledge and skills. Accountants and auditors are
broadening the services they offer to include budget analysis, financial and
investment planning, information technology consulting, and limited legal
services.”
10.
Routine activities:
• Record sales and cash collections.
• Record purchases and payments to suppliers.
Decision Support:
• Identify new products that the company should sell in the future.
• Identify most profitable products.
Planning and control:
• Prepare sales budget for next year.
11.
The answer will vary by student.
12.
The answer will vary by student.
13.
Users may want reports that show information that satisfies a certain criteria
(a product whose sales increased by more than a certain percent compared to
prior date). Sales could be listed in descending order of changes (e.g. list
products whose sales grew the most compared to prior date first). The report
could group products into categories. Finally, a summary report that
summarizes changes by categories rather than by individual products may be
useful.
14.
The answer will vary by student.
COMPREHENSIVE CASE