Ais Chap 1

In: Business and Management

Submitted By mangoming97
Words 1541
Pages 7
|Subject Name |FIN3024 Accounting Information Systems |
|Topic |Introduction to Accounting Information Systems |
|Week |1 |

Chapter Overview

This chapter explains some fundamentals of accounting information systems and the historical development of it until the need to have one become so essential to meet the competitive environment. In addition, it discusses the role of systems within the organizational setting as well as accountants’ roles in using, designing and auditing the accounting information systems.

Learning Objectives

▪ Explain the historical development of corporate accounting information systems ▪ Explain the nature, context and purpose of corporate accounting information systems. ▪ Explain the business information support systems. ▪ Examine the role of accountants and information systems.

Learning Outcomes:

On successful completion of this topic students should be able to:

Describe the major influences changing the nature and context of accounting information systems;

Demonstrate an understanding of business information support systems.

Illustrate an awareness of the role of accountants, accounting and finance related specialists in accounting information systems;

History of Accounting

10 Early Accounting

• Early forms of accounting can be found in Egypt and Mesopotamia. • Some records existed before money often in the form of clay or other forms of recording marks. • Accounting was important for…...

Similar Documents

Principle of Auditing Chap 1

... CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1-1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying documents related to the Enron case brought into question the ethical standards of the profession. 1-2 Assurance services are professional services that enhance the quality of information, or its context, for decision-making. The two types are: (a) those that increase the reliability of information and (b) those that involve putting information in a form or context that facilitates decision-making. 1-3 A financial statement audit is, by far, the most common type of attest engagement. The overall assertion, made by management, most frequently is that the financial statements follow generally accepted accounting principles. 1-4 A large corporation with securities listed on a stock exchange is required by the rules of the stock......

Words: 5462 - Pages: 22

Ais Mcqs Chapter 1

...(1)Data differ from information in which way? (a) Data are output and information is input (b) Information is output and data are input (c) Data are meaningful bits of information (d) There is no difference (2)Which of the following is not a characteristic that makes information useful? (a)It is reliable (b) It is timely (c) It is inexpensive (d) It is relevant (3)Which of the following is a primary activity in the value chain? (a) Purchasing (b) Accounting (c) Post-sales service (d) Human resource management (4)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 strategy? (a) Product differentiation (b) Low-cost (c) Needs-based (d) Variety-based (5) Which of the following is not a means by which information improves decision making? (a) Increasing information overload (b) Reducing uncertainty (c) Providing feedback about the effectiveness of prior decisions (d) Identifying situations requiring management action (6)In the value chain concept, upgrading IT is considered what kind of activity? (a) Primary activity (b) Support activity (c) Service activity (d) Structured activity (7) Lower-level management employees are most likely to make which of the following decisions? (a) Structured decisions involving strategic planning (b) Unstructured decisions involving managerial control (c) Structured decisions......

Words: 338 - Pages: 2

Information Security Chap 1-2

...Principles of Information security textbook problems Chapter 1 & 2 … Study this se t o nline at: http://www.cram.co m/cards/136 20 58 What is the dif f erence between a threat and a threat agent? A threat is a constant danger to an asset, whereas a threat agent is the facilitator of an attack. What is the dif f erence between vulnerability and exposure? Vu l n e r a b i l i ty i s a fa u l t wi ti n th e s ys te m , s u ch a s s o ftwa r e p a cka g e fl a ws , u n l o cke d d o o r s o r a n u n p r o te cte d s ys te m p o r t. It l e a ve s th i n g s o p e n to a n a tta ck o r d a m a g e . Exp o s u r e i s a s i n g l e i n s ta n ce wh e n a s ys te m i s o p e n to d a m a g e . Vu l n e r a b i l i ti e s ca n i n tu r n b e th e ca u s e o f e xp o s u r e . Who has the def inition of hack evolved over the last 30 years? In te e a r l y d a ys o f co m p u ti n g , e n th u s i a s ts we r e ca l l e d h a cks o r h a cke r s , b e ca u s e th e y co u l d te a r a p a r t th e i n s tr u cti o n co d e o r e ve n th e co m p tu e r i ts e l f to m a n i p u l a te i ts o u tp u t. Th e te r m h a cke r a t o n e ti m e e xp r e s s e d r e s p e ct fo r a n o th e r s a b i l i ty. In r e ce n t ye a r s th e a s s o ci a ti o n wi th a n i l l i g a l a cti vi ty h a s n e g a ti vl y ti n g e d th e te r m . What type of security was dominant in the early years of computing? Early security was entirely physical security. C o n fi d e n......

Words: 3982 - Pages: 16

Ais Answer Chapter 1

...chapter 1 accounting information systems: An overview Suggested Answers to Discussion Questions 1.1 The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you, or any organization, ever produce information if its expected costs exceeded its benefits? If so, provide some examples. If not, why not? Most organizations produce information only if its value exceeds its cost. However, there are two situations where information may be produced even if its cost exceeds its value. a. It is often difficult to estimate accurately the value of information and the cost of producing it. Therefore, organizations may produce information that they expect will produce benefits in excess of its costs, only to be disappointed after the fact. b. Production of the information may be mandated by either a government agency or a private organization. Examples include the tax reports required by the IRS and disclosure requirements for financial reporting. 1.2 Can the characteristics of useful information listed in Table 1-1 be met simultaneously? Or does achieving one mean sacrificing another? Several of the criteria in Table 1.1 can be met simultaneously. For example, more timely information is also likely to be more relevant. Verifiable information is likely to be more reliable. However, achieving one objective may require sacrificing another. For example,......

Words: 6172 - Pages: 25

Chap 1 Quiz

... | |Collette King and Family | |Ms. Lori Nolan | |Mrs. Susan Kaiser and Family | |15431 Woodland Orchard Lane | |12270 Peace River Drive | |2213 Colby Lane | |Cypress, TX 77433 | |Frisco, TX 75035 | |Wylie, TX 75098-6010 | |Ms. Dorla Hodge | |Ms. Casandra Bethune & Family | |Kara Schillaci and Family | |P.O. Box 1184, The Valley AI 2640, | |135-40 226th Street | |3487 McFarlin Blvd | |The Valley, Anguilla, BWI | |Laurelton, NY 11412 | |Dallas, TX 75205 | |Mrs. Candace Amlie & Family | |Ms. Arlene Vaquer | |Mr. & Mrs. Heavner | |37369 Robinson Drive | |34 Deertree Lane | |15000 Fountain Lake Drive, #417 | |Scio, OR 97374 | ......

Words: 628 - Pages: 3

Chap 1 Review

...Chapter 1 Review 1. Which of the following is true about 1 bit? C. Represent one binary digit 2. Which of the following terms means approximately 106 bytes? B. Megabyte 3. Which answer lists the correct number of bits associated with each term?C. 64 bits per quadruple word 4. Which of the following are true about random-access memory (RAM) as it is normally used inside a personal computer? A.Used for short term memory, E. Is installed on the motherboard 5. This chapter describes the concepts behind how a CPU reads the contents from RAM. Which of the following is true about the process of read data. As described in the chapter?A.The CPU tells the RAM which address holds data that the CPU wants to read. 6. Which of the following determines, in part what bits the computer stores in the file to represent the text typed into the report. C. Character set 7. What bits the computer store in RAM to represent the number 123456789? D. The binary equivalent to 123456789 8. Which of the following is not a feature of a file system that might be used with a hard disk drive? A.An actuator arm 9. Which of the following are some of the important features supplies by files as defined by a computer OS?(Choose three answers.)A. keeps data in order, B. provides a convenient way to make, C. names give users an easy way to reference the data 10. How does your classmate’s computer know what is on the flashdrive?A. reading the files system’s directory......

Words: 576 - Pages: 3

Ais Chapter 1

...Chapter 1 - Accounting Information Systems: An Overview A system is a set of two or more interrelated components that interact to achieve a goal. Most systems are composed of smaller subsystems that support the larger system. For example, a college of business is a system composed of various departments, each of which is a subsystem. Moreover, the college itself is a subsystem of the university. Each subsystem is designed to achieve one or more organizational goals. Changes in subsystems cannot be made without considering the effect on other subsystems and on the system as a whole. Goal conflict occurs when a subsystem is inconsistent with the goals of another subsystem or with the system as a whole. Goal congruence occurs when a subsystem achieves its goals while contributing to the organization’s overall goal. Data are facts that are collected, recorded, stored, and processed by an information system. For example, the business needs to collect data about a sale (date, total amount), the resource sold (good or service, quantity sold, unit price), and the people who participated (customer, salesperson). Information is data that have been organized and processed to provide meaning and improve the decision-making process. However, there are limits to the amount of information the human mind can absorb and process. Information overload occurs when those limits are passed, resulting in a decline in decision-making quality and an increase in the cost of providing that......

Words: 2080 - Pages: 9

Chap 1

...Chapter 1: Answers to Questions and Problems 1. Consumer-consumer rivalry best illustrates this situation. Here, Levi Strauss & Co. is a buyer competing against other bidders for the right to obtain the antique blue jeans. The maximum you would be willing to pay for this asset is the present value, which is 150, 000 150, 000 150, 000 150, 000 150, 000 PV = + + + + 2 3 4 (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 ) (1 + 0.09 )5 = $583, 447.69. 3. a. Net benefits are N (Q ) = 50 + 20Q − 5Q 2 . b. Net benefits when Q = 1 are N (1) = 50 + 20 − 5 = 65 and when Q = 5 they are 2 2. c. d. e. f. N (5) = 50 + 20(5) − 5(5) = 25 . Marginal net benefits are MNB (Q ) = 20 − 10Q . Marginal net benefits when Q = 1 are MNB (1) = 20 − 10(1) = 10 and when Q = 5 they are MNB (5) = 20 − 10(5) = −30 . Setting MNB(Q ) = 20 − 10Q = 0 and solving for Q , we see that net benefits are maximized when Q = 2 . When net benefits are maximized at Q = 2 , marginal net benefits are zero. That is, MNB (2 ) = 20 − 10(2 ) = 0 . 4. a. The value of the firm before it pays out current dividends is ⎛ 1 + 0.08 ⎞ PV firm = $550, 000 ⎜ ⎟ ⎝ 0.08 − 0.05 ⎠ . = $19.8 million b. The value of the firm immediately after paying the dividend is ⎛ 1 + 0.05 ⎞ Ex −Dividend = $550,000⎜ PV firm ⎟ ⎝ 0.08 − 0.05 ⎠ . = $19.25 million 5. The present value of the perpetual stream of cash flows. This is given by PVPerpetuity = CF $75 = = $1,875. i 0.04 Page 1 Managerial Economics and Business Strategy, 5e ...

Words: 2176 - Pages: 9

Life in the Universe Test Bank Chap 1

...Chapter 1: A Universe of Life? 1. | The portrayal of nearly all aliens in movies and on TV as being humanoid is | A) | based on the fact that it would be impossible for us to understand anything that wasn't very similar to a human | B) | realistic because the human form has several unique qualities that make it a good choice for any advanced civilization | C) | based on the fact that the human form is the only possible form for an advanced civilization | D) | probably unrealistic because the human form is most likely a result of the particular conditions and events that occurred on the Earth | 2. | Extraterrestrial life elsewhere in the universe | A) | will be unrecognizable | B) | could be similar to life on Earth or might be completely different | C) | will be identical to life on Earth | D) | will be completely different than life on Earth | 3. | Extraterrestrial life is defined to be | A) | life found beyond the Earth which is based on the same biology and chemistry as life on Earth | B) | advanced life forms that have visited the Earth | C) | any kind of life found beyond the Earth | D) | advanced life found on Earth-like planets around other stars | 4. | If life is eventually found in the solar system, it will most likely be in the form of | A) | microbes | B) | plants | C) | animals | D) | little green men and women | 5. | Recently astronomers have gained concrete evidence that, in addition to being full of......

Words: 1117 - Pages: 5

Summary of Hrm Chap 1 and 2

...Summary of Chapter 1: Introduction to HRM The book further provides a detailed explanation of the Line Managers’ Human Resource Duties like placing the right person on the right job, starting new employees in the organization (orientation), training employees for jobs that are new to them, improving the job performance of each person etc. In order to carry out this specialized assistance, the HR managers carries out three distinct functions, A line function, A coordinative function and Staff function. New approaches to Organizing HR have also been discussed with four specific points, the transactional HR, corporate HR, embedded HR and the centers of expertise, these are four groups within which the employees try to organize themselves. To further clear the concept of new approaches three different examples have also been shared. Then the chapter proceeds to how some trends are shaping up the HR management. Trends like, globalization, competition, technological innovations etc. are drastically changing the whole human resource management system. Due to globalization, trade groups like NAFTA, SAARC are formed which requires partnerships, job offshoring and more employment, this leads to training the employees to learn the culture and tradition of foreign countries to work in a congenial environment. Technological trends has enabled the introduction of high-tech jobs, new service jobs requiring technological expertise encouraging the knowledge workers and thus increasing the......

Words: 1209 - Pages: 5

Fi 312 Chap 1 Hw

...Chapter 1 A Brief History of Risk and Return Concept Questions 1. For both risk and return, increasing order is b, c, a, d. On average, the higher the risk of an investment, the higher is its expected return. 2. Since the price didn’t change, the capital gains yield was zero. If the total return was four percent, then the dividend yield must be four percent. 3. It is impossible to lose more than –100 percent of your investment. Therefore, return distributions are cut off on the lower tail at –100 percent; if returns were truly normally distributed, you could lose much more. 4. To calculate an arithmetic return, you simply sum the returns and divide by the number of returns. As such, arithmetic returns do not account for the effects of compounding. Geometric returns do account for the effects of compounding and for changes in the base used for each year’s calculation of returns. As an investor, the more important return of an asset is the geometric return. 5. Blume’s formula uses the arithmetic and geometric returns along with the number of observations to approximate a holding period return. When predicting a holding period return, the arithmetic return will tend to be too high and the geometric return will tend to be too low. Blume’s formula adjusts these returns for different holding period expected returns. 6. T-bill rates were highest in the early eighties since inflation at the time was relatively high. As we discuss in our chapter on......

Words: 2072 - Pages: 9

Patho Chap 1

...Chapter 1 Introduction to Pathophysiology Lee-Ellen C. Copstead Key Questions • What is pathophysiology? • How are etiology and pathogenesis used to predict clinical manifestations and response to therapy? • How are normal and abnormal physiologic parameters defined? • What general factors affect the expression of disease in a particular person? • What kinds of information about disease can be gained through understanding concepts of epidemiology? http://evolve.elsevier.com/Copstead/ • Review Questions and Answers • Glossary (with audio pronunciations for selected terms) • Animations • Case Studies • Key Points Review Pathophysiology derives from the intersection of two older, related disciplines: pathology (from pathos, suffering) and physiology (from physis, nature). Pathology is the study and diagnosis of disease through examination of organs, tissues, cells, and bodily fluids. Physiology is the study of the mechanical, physical, and biochemical functions of living organisms. Together, as pathophysiology, the term refers to the study of abnormalities in physiologic functioning of living beings. Pathophysiology seeks to reveal physiologic responses of an organism to disruptions in its internal or external environment. Because humans exhibit considerable diversity, healthy structure and function are not precisely the same in any two individuals. However, discovering the common and expected responses to abnormalities in physiologic functioning is useful, and......

Words: 8886 - Pages: 36

Ais Hw Chapter 1

...Mariajose Anare ACG 4401 M & W August 31, 2015 Chapter 1 HW DQ1 The cost and benefits of information may be difficult to quantify as the book estates. And given the difficulty at times any organization may produce information that exceeds cost without realizing it until it too late. Producing information that is valuable but costly does not sound like a good idea, however there are times when organization are force by law to produce information regardless of the cost. For example the IRS mandates regular tax reports quarterly; this practice may cause the organization you spend more than the benefit they may obtain from the information. DQ2 The characteristics that make information useful could go both ways; it can be met simultaneously or one can hider another. For example when information is accessible to users, then it becomes verifiable because independent users can check it; when information is verifiable, then it is reliable because it can be trusted. Information that is relevant it’s usually understandable and presented at the right time. However there are times when a focus on one particular characteristic may lessen others. If the focus is to have a complete report, it may not necessarily be presented at the proper time. Therefore complete information may not be timely. Accessible information may not always be easily understandable making it unverifiable. Problem 4 1. Relevant – F. An accountant receivable aging report is used in......

Words: 599 - Pages: 3

Investment Chap 1

...Topic 1 – Are Stock Prices predictable? Capital Ideas: Chapter 1: Are Stock Prices Predictable? * It is doubtful * Paul Samuelson – economist and Nobel laureate (receiver): even smart people have a hard time getting rich by predicting stock prices. * While some people never try to outguess the market, in the face of admittedly high odds, y to predict stock prices to keep an entire industry humming (noisy). * The demand for the wisdom produced by armies of security analysts, portfolio managers, television pundits (expert), software peddlers (seller), and newspaper columnists shows no sign of waning (decreasing). * The wealthiest people on Wall Street are professionals whose bank accounts have been inflated by a constant flow of investment advisory fee. Index funds, which hold a diversified cross-section of the market and never sell one stock to buy another, account for less than 15 percent of all equity portfolios. * While no one goes as far to say that it is impossible to make good predictions or that all predictions are destined to be wrong, the abundant evidence and the robust (strong) character of the theories that explain the evidence confirm that the task of predicting stock prices is formidable by any measure. * 1900, Louis Bachelier: * Completed his dissertation titled “The Theory of Speculation.” This was the first effort to employ theory, including mathematical techniques, to explain why stock market behaves as it does. *......

Words: 311 - Pages: 2

Business Management, Chap 1

...1. Contrast efficiency and effectiveness. Give an example of a time when an organization was effective but not efficient, efficient but not effective, both efficient and effective, and neither efficient not effective. There are differences between efficiency and effectiveness. First efficiency means using the resources wisely and also in such a way that is cost effective, on the other hand, effectiveness is about making the right decision and also successfully implementing them. 2. What are the four basic activities that comprise the management process? How are they relates to each other? The four basic activities that comprise the management process are; Planning and decision making, organizing, leading, and controlling, All four activities are related to each other because in order to make each of them happen a previous activity has already develop or still in process. . 3. Briefly describe the ten managerial roles described by Henry Mintzberg. Give an example of each. Interpersonal Figurehead: Perform social and legal duties, act as symbolic leader. Example; Greet visitors, sign legal documents, attend ribbon cutting ceremonies, host receptions. Leader: Direct and motivate subordinates, select and train employees. Examples; Includes almost all interactions with subordinates   Liaison: Establish and maintain contacts within and outside the organization. Example; Business correspondence, participation in meetings with representatives of other......

Words: 419 - Pages: 2