Solution
Manual for
Accounting
Information
Systems 10th
Edition Hall
, Chapter 1 Page 2
CHAPTER 1THE INFORMATION SYSTEM: AN ACCOUNTANT’S PERSPECTIVE
REVIEW QUESTIONS
1. Operational, operations management, middle management, and top management.
Horizontal flows support operation-level tasks. The information is highly detailed
about the day-to-day operations. Vertical flows distribute summarized information to
managers at all levels, and this information flows upward. Instructions, quotas, and
budgets also flow downward.
2. Data are facts that are collected in a “raw” form and made meaningful through
processes such as sorting, aggregating, classifying, mathematically manipulating,
and summarizing. The meaningful data is considered to be information. Information
Systems are the formal procedures by which data are collected, stored and
processed into the system and distributed to users.
3. AISs process financial transactions and certain nonfinancial transactions that directly
affect the processing financial transactions. The external financial reporting
documents of AIS are subject to legal and professional standards. Consequently,
management and accountants have greater legal responsibility for AIS applications
than for MIS applications. The MIS processes nonfinancial transactions that are
outside the scope of the AIS. MIS applications expand the information set provided
to such areas as production, sales, marketing, and inventory management. MIS
, Chapter 1 Page 3
often draws from and builds on data from the AIS.
4. Revenue cycle, expenditure cycle, and conversion cycle.
5. Reports used by management, which the company is not obligated by law,
regulation, or contract to provide. These are often used for internal problem-solving
issues rather than by external constituents.
6. Relevance, accuracy, completeness, summarization, and timeliness.
7. Relevance and efficiency.
8. Data attribute (field), record, file, and database.
9. Storage, retrieval, and deletion.
10. Feedback is output that is sent back to the system as a source of data. Feedback is
useful because it can be used to initiate or adjust the system processes.
11. A. to support the stewardship function of management,
B. to support the decision-making processes of managers, and
C. to support the day-to-day operations of the firm.
12. Stewardship is the responsibility of management to properly utilize the resources of
the firm entrusted to them. Information systems provide management with reports to
better manage the resources and also provide responsibility reports by which
management may be evaluated.
13. A. Materials Management
1. purchasing
2. receiving
, Chapter 1 Page 4
3. stores
B. Production
1. production planning
2. quality control
3. maintenance
C. Marketing
1. advertising
2. market research
3. sales order processing
D. Distribution
1. warehousing
2. shipping
E. Personnel
1. recruiting
2. training
3. benefits
4. counseling
F. Finance
1. portfolio management
2. treasury
3. credit
4. cash disbursement
5. cash receipt
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller akira11114684. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.