Accounting Information System

• The manual process model is the oldest and most traditional form of accounting system.

  True
• Another problem with the flat-file approach is the user’s ability to obtain additional information as his or her needs change. This problem is called task-data dependency.

  False
• The flat-file approach is a single-view model. Files are structured, formatted, and arranged to suit the general needs of the owner or secondary user of the data.

  False
• The flat-file approach is a single-view model. Files are structured, formatted, and arranged to suit the specific needs of the owner or primary user of the data. This structuring, however, may exclude data attributes that are useful to other users, thus preventing the successful integration of data across the organization. The users are presented with the following options EXCEPT:


  Use accounting data to support decisions
• This approach centralizes the organizations data into a common database that is shared by other users

  Database Model
• These are professional services performed by an accountant which includes the attest function, that are designed to improve the quality of information, both financial and non-financial, used by decision-makers.

  Assurance Services
• An appreciation of the accountant’s responsibility for system design requires a historical perspective that predates the computer as a business information tool. Traditionally, accountants have been responsible for key aspects of the information system which include, EXCEPT

  Develop the controls necessary to preserve the integrity
• The credit department of a retail business requires information about delinquent accounts from the AR department. This information supports decisions made by the credit manager regarding the worthiness of customers. The design of the physical system involves specifying the criteria for identifying delinquent customers and the information that needs to be reported.

  False
• The accountant must specify accounting rules and techniques to be used, internal control requirements, and special algorithms such as depreciation models. The accountant's participation in system development should be passive rather than active.

  False
• Some Enterprise Resource Planning modules include, EXCEPT

  Business Liquidation
• Enterprise resource planning (ERP) is an information system model that enables an organization to automate and integrate its key business processes. ERP breaks down traditional functional barriers by facilitating data sharing, information flows, and the introduction of common business practices among all organizational users.

  True
• The assets of the organization. They are defined as objects that are both scarce and under the control of the enterprise.

  Resource
• REA is an accounting framework for modeling an organization critical resources, events, and agents (REA) and the relationships between them.

  True
• Organizations have a great deal of data stored in files that require periodic updating to reflect changes. For example, a change to a customers name or address must be reflected in the appropriate master files.

  Data Updating
• The flat file environment able to captures and stores data only once and makes this single source available to all users who need it.

  False
• An efficient information system captures and stores data only once and makes this single source available to all users who need it.

  Data Storage
• In a database management system, each data element is stored only once. For example, customer data exists only once but is shared by accounting, marketing, and product services users.

  Elimination of data redundancy
• REA is a conceptual model, not a physical system.

  True
• Flat-file and early database systems are called traditional systems. Within this context, the term traditional means that the organization's information systems applications (its program) function dependently on each other rather than as an integrated whole.

  False
• Economic agents in a REA model are individuals and departments that participate in an economic event. They are parties both inside and outside the organization with discretionary power to use or dispose of economic resources.

  True
• Budgets

  MRS
• Variance Reports

  MRS
• Balance Sheet

  FRS
• CVP Analysis

  MRS
• Annual Report

  MRS
• Tax Return

  FRS
• Sale Summary Analysis by Product Line

  MRS
• Merger COntract

  MRS
• Cost of Sale Analysis

  MRS
• Inventory Management Plan

  MRS
• Management Responsibility

  FRS
• Accounts Receivable Aging Analysis

  FRS
• Capital Budget

  MRS