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accounting information systems
Questions and Answers of
Accounting Information Systems
Assume that you have purchased a small retail nursery. Your nursery sells various types and sizes of trees, bedding plants, vegetable plants, and shrubs. It also sells fertilizer and potting soil.
Search popular business magazines (Business Week, Fortune, Forbes) for an article that describes a dysfunctional behavior resulting from a poorly designed manager¬ ial reporting and performance
Shauna Washington started a business to sell art supplies and related curricula to home school families. The business grew quickly, with sales doubling three times during a five-year period. At that
On the following Web sites you will find several online demonstrations for the SAP and Oracle ERP systems. Visit these Web sites ^nd explore their content by doing the following:a. The SAP Web site
For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate.a. Make an airline reservationb. Register for a university
A DFD is a representation of which of the following?a. relationship among modules, data, and programs of an AISb. flow of data in an organizationc. decision rules in a computer programd. computer
Which of the following statements is false?a. Flowcharts make use of many symbols.b. A flowchart emphasizes the flow of documents or records containing data.c. DFDs help convey the timing of
A DFD consists of the following four basic elements: data sources and destinations, data flows, transformation processes, and data stores. Each is represented on a DFD by a different symbol.a. Trueb.
Which of the following statements is false?a. A flowchart is an analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner.b. Flowcharts use a
Which of the following flowcharts illustrates the flow of information among areas of responsibility in an organization?a. program flowchartc. system flowchartb. computer configuration chartd.
Which of the following is not one of the recommended guidelines for making flowcharts more readable, clear, concise, consistent, and understandable?a. Divide the flowchart into columns with labels.b.
Data sources and destinations are represented in a data flow diagram as:a. a squared. two parallel linesb. a curved arrowe. none of the abovec. a circle
Which of the following is not a characteristic that makes information useful?a. It is reliable.c. It is inexpensive.b. It is timely.d. It is relevant.
Which of the following is a primary activity in the value chain?a. purchasingc. post-sales serviceb. accountingd. human resource management
Top management continually emphasizes and supports investments designed to improve the efficiency of the manufacturing process. Such a focus most likely reflects the pursuit of which type of
Which of the following is not a means by which information improves decision making?a. increasing information overloadb. reducing uncertaintyc. providing feedback about the effectiveness of prior
In the value chain concept, upgrading IT is considered what kind of activity?a. primary activityc. service activityb. support activityd. structured activity
Lower-level management employees are most likely to make which of the following decisions?a. structured decisions involving strategic planningb. unstructured decisions involving managerial controlc.
Which of the following is a function of an AIS?a. reducing the need to identify a strategy and strategic positionb. transforming data into useful informationc. allocating organizational resourcesd.
One function of the AIS is to provide adequate controls to ensure the safety of organizational assets, including data. Many people, however, often view control procedures as “red tape.” Discuss
One interesting property of digital assets is that they can be reproduced and dis¬ tributed via the Internet at very little cost. What are some of the implications of having a product with a
Figure 1-2 shows that organizational culture and the design of an AIS influence one another. What does this imply about the degree to which an innovative system I developed by one company can be
Figure 1-2 shows that developments in IT affect both an organization’s strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on
To what extent can all the characteristics of useful information listed in Table 1-1 be simultaneously met? Table 1-1 Characteristics of Useful Information Relevant Reliable Complete Timely
Write a two-page report explaining the two basic strategies that S&S, Inc. can pursue and the three different strategic positions that it can adopt. Include in your report a discussion and examples
Decision scope categorizes decisions into three broad areas of managerial decision making. These three areas are operational control, management control, and strategic planning. In your own words,
Information technology is continually changing the nature of accounting and the role of accountants. Write a two-page report describing what you think the nature of the accounting function in a large
Research the programming language XBRL and write a two-page report about its effect on financial reporting via the Internet.
United Services Automotive Association (USAA) grew to become the fourth- largest insurer of homes and the fifth-largest insurer of automobiles during its first fifteen years. One reason for its
Which of the following would contain the total value of all inventory owned by an organization?a. source documentb. general ledgerc. cash budget
Which of the following is the most useful for projecting the need for short-term borrowing?a. income statementb. performance reportc. cash budgetd. balance sheet
What report expresses goals in financial terms?a. performance reportb. financial statementc. budgetd. chart of accounts
In which cycle does a company ship goods to customers?a. production cycleb. financing cyclec. revenue cycled. expenditure cycle
Recording and processing information about a transaction at the time it takes place is referred to as which of the following?a. batch processingb. online, real-time processingc. captured transaction
Examine Table 2-1 and discuss how the various information needs would be collected and reported by a company’s AIS. Table 2-1 Overview of S&S's Business Processes, Key Decisions, and Information
At most movie theaters, one employee is usually responsible for issuing tickets and collecting cash while another person collects those tickets when patrons enter the theater. What is the reason for
What piece of technology infrastructure is essential to allow the sharing of computer resources, e.g. data storage and processing capability?
Define the term ‘cloud computing’.
What are the essential features of cloud computing?
List and describe the three common cloud computing models.
Distinguish a public cloud from a private cloud.
Describe the benefits of cloud computing.
What are the potential drawbacks of cloud computing?
Which cloud computing model can offer some accounting advantages in particular to smaller business?
What are the advantages of cloud accounting software over desktop software?
In deciding between traditional desktop or cloud accounting software, what questions might a small business consider?
Earlier, in Mini-case 9.1, the features of Sort My Books cloud accounting software were highlighted.Based on Table 9.1 and/or an internet search, examine and discuss the features of other cloud
Using a web search, seek out articles or features on how business or governmental organisations are saving money and other resources by using cloud services. Discuss what cloud service models they
Why is spreadsheet software such as Excel so widespread in organisations?
What are the benefits of spreadsheet software over paper counterparts?
Name some alternative spreadsheet programmes to Microsoft Excel.
Name some uses of spreadsheets in financial accounting.
Name some uses of spreadsheets in management accounting.
What are the main advantages of using PivotTables?
How can you use the function ‘Trace precedents’ in order to ensure quality in a spreadsheet model?
Spreadsheet programmes are a prominent feature in most businesses. Very often, businesses that have reached a critical size should ideally move to more suitable systems such as accounting software or
Do a web search, and based on the results, discuss some other accounting tasks than those introduced in this chapter that can be performed using Excel. What are the most popular accounting tools that
Who are some typical users of accounting information?
Give one reason why off-the-shelf accounting software was among the earliest software available commercially.
Are separate software or information systems necessary to match the needs for financial accounting information and management accounting information?
Would you expect all accounting software to offer multi-currency functions?
If a business records an expense, e.g. a utility bill, this is only relevant to financial accounting and the financial statements. Do you think this is true with respect to how software like an ES
How have developments in accounting information systems affected the roles of accountants in business?
Describe the main features of an ES.
List and describe the main internal drivers of organisational change.
List and describe the main external drivers of organisational change.
Explain the terms hard and soft systems changes.
Explain the terms minor and major systems changes.
Describe the purpose of the SDLC.
Explain the main steps of the SDLC.
Describe briefly the four steps of the systems analysis phase of the SDLC.
Describe three ways systems can be implemented.
Why is the review stage of the SDLC important?
List and briefly explain some systems development methodologies which are alternatives to the SDLC.
Explain the four main steps in managing an information systems project.
Explain critical path analysis and explain why it is useful for managing information systems projects.
Perform a web search to find an example of an information systems project which failed. Discuss why the project failed and link the reasons to steps in the SDLC to see what should have been done.
Given the information below and the Gantt chart layout provided in Microsoft Excel format on the book’s website or similar tools at this link
Explain a business process.
How does ES software differ from previous software such as MRP and MRPII?
List the key three business processes within a typical ES like SAP.
Describe what are the general features of ES software.
Explain what the term best of breed means.
As a typical example of the functionality of an ES, list the main modules of SAP ERP.
Describe the main functions of the financial accounting and management accounting modules of SAP ERP.
Why does an organisation typically have to change its business processes when implementing an ES?
Explain the term chart of accounts. Explain the role accountants may have in creating one for an ES implementation.
Is it necessary to configure a detailed cost and revenue centre structure in an ES? Explain why or why not.
List some examples of the additional audit risks posed by an ES system.
‘The typical accounting function in an organisation will have to make some changes to how it does things after the ES implementation’. Explain this statement, providing some examples.
Choose two organisations that use an ES. One organisation should be a product/manufacturing company, the other a service/public/government organisation. For each chosen organisation, discuss, using
Choose any large organisation you are familiar with – you could use one of the organisations from item 1 above. Discuss what responsibility centres (cost centres and revenues centres) it might
Search the internet for examples where ES implementations were not as successful as planned.One story can be found at this link
What is a systems interface?
Are all systems interfaces between internal organisational information systems? Explain.
List and explain some key systems interface design principles.
Explain the types of controls which ensure systems interfaces are as expected and work correctly.
Explain the term customer relationship management (CRM).
List and briefly explain some examples of integrating with customer information systems.
List and briefly explain some examples of integrating with supplier information systems.
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