Page 65 - Accounting Information Systems

36 PART I Overview of Accounting Information Systems

13. Discuss how conceptual and physical systems dif- customers in a local community needs a system
fer and which functions are responsible for each of to manage its affairs.
these systems. A major oil company with diverse holdings,
14. If accountants are viewed as providers of informa- complex oil leases, and esoteric accounting
tion, then why are they consulted as system users practices needs a system that can coordinate its
in the systems development process? many enterprises.
15. Do you agree with the statement, ‘‘The term IT A municipal government needs a system that
auditor should be considered obsolete because it complies with standard government accounting
implies a distinction between regular auditors and practices but can be integrated with other exist-
auditors who examine computerized AIS’’? Why ing systems.
or why not?
19. The REA model is based on the premise that
16. What are the primary reasons for segmenting ‘‘business data must not be preformatted or artifi-
organizations? cially constrained and must reflect all relevant
17. Why is it important to organizationally separate aspects of the underlying economic events.’’ What
the accounting function from other functions of does this mean and how is it applied?
the organization? 20. ERP systems are composed of a highly integrated
18. What is the most likely system acquisition method— set of standardized modules. Discuss the
in-house, turnkey, backbone, or vendor-supported— advantages and potential disadvantages of this
for each of the following situations? approach.
A plumbing supply company with 12 employees
that sells standard products to wholesale

Multiple-Choice Questions

1. Which of the following is NOT a financial 4. The objectives of the data collection activity of
transaction? the general model for Accounting Information Sys-
a. purchase of products tems are to collect data that are
b. cash receipts a. relevant and redundant.
c. update valid vendor file b. efficient and objective.
d. sale of inventory c. efficient and redundant.
2. The following are subsystems of the Accounting d. efficient and relevant.
Information System, EXCEPT 5. Which of the following is NOT a characteristic of
a. Transaction Processing System. effective information?
b. Human Resources System. a. relevance
c. General Ledger/Financial Reporting System. b. accuracy
d. Management Reporting System. c. summarization
3. Which of the following is NOT a purpose of the d. precision
Transaction Processing System? 6. Which of the following is NOT a database man-
a. managing and reporting on the status of finan- agement task?
cial investments a. retrieval
b. converting economic events into financial b. storage
transactions c. summarization
c. distributing essential information to operations d. deletion
personnel to support their daily operations
d. recording financial transactions in the account-
ing records