Page 67 - Accounting Information Systems

38 PART I Overview of Accounting Information Systems

Problems

1. USERS OF INFORMATION 5. INFORMATION SYSTEM
Classify the following users of information as either: CATEGORIZATION
I—internal user Classify the following items as either:
T—external user: trading partner TPS—transaction processing system
S—external user: stakeholder FRS—financial reporting system
a. Internal Revenue Service MRS—management reporting system
b. Inventory control manager a. Variance reports
c. Board of directors b. Sales order capture
d. Customers c. Balance sheet
e. Lending institutions d. Budgets
f. Securities and Exchange Commission e. Purchase order preparation
g. Stockholders f. Tax returns
h. Chief executive officer g. Sales summary by product line
i. Suppliers h. Cash disbursements preparation
j. Bondholders i. Annual report preparation
j. Invoice preparation
2. SUBSYSTEMS k. Cost-volume-profit analysis
Use the human body system to illustrate the concepts
of system decomposition and subsystem interdepen- 6. FLAT-FILE VERSUS DATABASE
dency. Draw a hierarchical chart similar to the one in MODEL
Figure 1-2 and discuss the interdependencies.
Outline the traditional problems associated with the flat-
file model that are resolved by the database model.
3. ACCOUNTING INFORMATION
SYSTEM MODEL
7. ORGANIZATION FUNCTIONS
Examine the diagram below and determine what essen-
Based on Figure 1-8, draw a diagram of functional
tial mechanism is missing. Once you have identified the
segments for an oil company that has the following
missing element, discuss its importance
operations:
a. A head office in New York City responsible for
Database international and national marketing, acquisition of
Management
leases and contracts, and corporate reporting.
b. Two autonomous regional facilities in Tulsa, Okla-
homa, and New Orleans, Louisiana. These facilities
are responsible for oil exploration, drilling, refining,
Data Data Information storage, and the distribution of petroleum products
Collection Processing Generation
to corporate service stations throughout the country
and abroad.

4. ACCOUNTING INFORMATION 8. ORGANIZATION FUNCTIONS
SYSTEM & MANAGEMENT Based on Figure 1-8, draw a diagram of functional seg-
ments for a manufacturer of diversified products. The
INFORMATION SYSTEM FEATURES
general characteristics of the firm are as follows:
List some AIS and MIS information from which salespeo-
a. The organization produces three unrelated products:
ple may benefit. Clearly indicate whether the information
lawn and garden furniture for sale in home im-
item would be an output of a traditional AIS or MIS system.
provement centers and department stores; plastic
Finally, discuss the benefits of integrating this information.