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Book Author: Romney scored by the system.

Location on Site: Chapter 10 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 10:50 AM (UTC/GMT)
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Submitted:

The revenue cycle's primary objective is to provide the right product in the right place at the right time for the right price. To
1. accomplish that objective, management must make what key decisions?
Your Answer:
.

1. To what extent can and should products be customized to individual customers' needs
and desires?
2. How much inventory should be carried, and where should that inventory be located?
3. How should merchandise be delivered to customers? Should the company perform the
shipping function itself or outsource it to a third party that specializes in logistics?
4. What are the optimal prices for each product or service?
5. Should credit be extended to customers? If so, what credit terms should be offered? How
much credit should be extended to individual customers?
6. How can customer payments be processed to maximize cash flow?

How can the risk of the theft of cash and customer checks be stolen be minimized?
2. Your Answer:
.

The following pairs of duties should be segregated:

1. Handling cash or checks and posting remittances to customer accounts. A person

performing both of these duties could commit the special type of embezzlement called
tapping.
2. Handling cash or checks and authorizing credit memos. A person performing both of
these duties could conceal theft of cash by creating a credit memo equal to the amount
stolen.
3. Issuing credit memos and maintaining customer accounts. A person performing both of
these duties could write off as uncollectible amounts owed by friends.

A well-designed AIS should provide adequate controls over the revenue cycle to ensure what objectives?
3. Your Answer:
.

The following objectives must be met to ensure adequate controls in the AIS exist with respect to the revenue cycle:

1. All transactions are properly authorized

2. All recorded transactions are valid (actually occurred)

3. All valid, authorized transactions are recorded

4. All transaction are recorded accurately

5. Assets (cash, inventory, and data) are safeguarded from loss or theft

6. Business activities are performed efficiently and effectively

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 11 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 10:56 AM (UTC/GMT)
More information about scoring
Submitted:

The threats involved with ordering goods include:

1. Your Answer:
.

1. Preventing stock-outs and/or excess inventory

2. Ordering unnecessary items
3. Purchasing goods at inflated prices
4. Purchasing goods of inferior quality
5. Purchasing from unauthorized suppliers
6. Kickbacks

The third function of the AIS is to provide information useful for decision making. This means that an organization's AIS must
2. provide the operational information needed to perform which expenditure cycle functions.
Your Answer:
.

1. Determine when and how much additional inventory to order

2. Select the appropriate suppliers from whom to order
3. Verify the accuracy of vendor invoices
4. Decide if purchase discounts should be taken
5. Monitor cash flow needs to pay outstanding obligations

List the three possible exceptions to the receiving process

3. Your Answer:
.

The three possible exceptions to the receiving process are:

1. Quantity received is different from amount ordered,

2. Goods received are damaged, and

3. Goods received are of inferior quality.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 12 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 11:00 AM (UTC/GMT)
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Submitted:

Information about quality costs can help companies determine the effects of actions taken to improve yield and identify areas
1. to further improvement. Quality control costs can be divided into what four areas:
Your Answer:
.

1. Prevention costs are associated with changes to production processes designed to reduce
the product defect rate.
2. Inspection costs are associated with testing to ensure that products meet quality
standards.
3. Internal failure costs are associated with reworking, or scrapping products identified as
being defective prior to sale.
4. External failure costs result when defective products are sold to customers. They include
such costs as product liability claims, warranty and repair expenses, loss of customer
satisfaction, and damage to the company's reputation.

A company's AIS plays a vital role in the production cycle. Accurate and timely cost accounting information is essential input
2. to decisions about what topics?
Your Answer:
.

1. Product mix (what to produce)

2. Product pricing
3. Resource allocation and planning
4. Cost management (planning and controlling manufacturing costs and evaluating
performance).

List the three principal objectives of the cost accounting system.

3. Your Answer:
.

The three principal objectives of the cost accounting system are:

1. Provide information for planning, controlling and evaluating production performance,

2. Provide accurate product cost data to use in pricing and product mix decisions, and

3. Collect and process information used to calculate inventory and cost of goods sold.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 13 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 11:03 AM (UTC/GMT)
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Submitted:

The second major function of the AIS in the HRM/payroll cycle is to provide adequate internal controls to ensure meeting what
1. objectives:
Your Answer:
.

1. All payroll transactions are properly authorized

2. All recorded payroll transactions are valid
3. All valid, authorized payroll transactions are recorded
4. All payroll transactions are accurately recorded
5. Applicable government regulations regarding remittance of taxes and filing of payroll and
HRM reports are met
6. Assets (both cash and data) are safeguarded from loss or theft
7. HRM/payroll cycle activities are performed efficiently and effectively

The payroll system must be designed to collect and integrate cost data with other types of HR information to enable
2. management to make what kinds of decisions.
Your Answer:
.

1. Future workforce staffing needs, i.e., how many employees and what skill level
2. Employee performance. Which employees should be promoted or receive pay raises? Who
should be discharged?
3. Employee morale. What is the overall level of employee morale and job satisfaction? How
can the compensation scheme be used to improve morale, satisfaction, and performance?
4. Payroll processing efficiency and effectiveness. How frequently should employees be
paid?

Why is payroll still processed using a batch mode?

3. Your Answer:
.

Payroll is still batch processed because paychecks are prepared on set periods (weekly, bi-weekly, monthly) and most
employees are paid at the same time.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 14 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 11:35 AM (UTC/GMT)
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Submitted:

Adjusting entries fall into what five categories:

1. Your Answer:
.

1. Accruals, which represent entries made at the end of the accounting period to reflect
events that have occurred but for which cash has not yet been received or disbursed.
2. Deferrals, which represent entries made at the end of the accounting period to reflect the
exchange of cash prior to performance of the related event.
3. Estimates represent entries that reflect a portion of expenses that occur over a number of
accounting periods.
4. Revaluations represent entries made to reflect either differences between the actual and
recorded value of an asset or a change in accounting principle.
5. Corrections represent entries made to counteract the effects of errors found in the
general ledger.

How is a balanced scorecard described?

2. Your Answer:
.

A balanced scorecard is a report that provides a multidimensional perspective of organizational performance. A balanced
scorecard contains measures reflecting four perspectives of the organization: financial, customer, internal operations, and
innovation and learning. For each dimension, the balanced scorecard shows the organization's goals and specific measures
that reflect performance in attaining those goals.

What are the methods and reports that can be used to reconcile the general ledger?
3. Your Answer:
.

When reconciling the general ledger, consideration needs to be given to the following:

1. The trial balance is the first report that can be used to reconcile the general ledger. This
report proves that the total of the credits equal the total of the debits.

2. All suspense and clearing accounts need to be analyzed to ensure an error was not made
in the posting process.

3. General ledger control account balances need to be compared to their subsidiary ledgers
to ensure the totals agree. An example of this is the comparison of the accounts
receivable aging balance with the accounts receivable balance on the general ledger.

4. Control reports are useful in identifying missing general journal entries.

5. A general journal listing is useful in analyzing the details of each entry posted to the
general ledger.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 15 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 11:55 AM (UTC/GMT)
More information about scoring
Submitted:

In developing an REA diagram for a specific transaction cycle, what are the applicable three steps?
1. Your Answer:
.

1. Identify the events about which management wants to collect information

2. Identify the resources affected by each event and the agents who participate in those
events
3. Determine the cardinalities of each relationship

What three basic types of relationships between entities are possible, depending on the maximum cardinality associated with
2. each entity?
Your Answer:
.

1. A one-to-one relationship which exists when the maximum cardinality for each entity in
that relationship is 1
2. A one-to-many relationship exists when the maximum cardinality of one entity in the
relationship is 1 and the maximum cardinality for the other entity in that relationship is
many
3. A many-to-many relationship exists when the maximum cardinality for both entities in
the relationship is many

Explain the concept of cardinality.

3. Your Answer:
.

The final step in drawing an REA diagram for one transaction cycle is to add information about relationship cardinalities.
Cardinalities describe the nature of the relationship between two entities by indicating how many instances of one entity can
be linked to each specific instance of another entity. There are three types of relationships among entities: one-to-one,
one-to-many, and many-to-many.

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Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 16 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 12:02 PM (UTC/GMT)
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Submitted:

What five rules apply to a correctly drawn, integrated REA diagram?

1. Your Answer:
.

1. Every event must be linked to at least one resource

2. Every event must be linked to two agents who participate in that event
3. Every event that involves the disposition of a resource must be linked to an event that
involves the acquisition of a resource.
4. Every resource must be linked to at least one event that increments that resource and to
at least one event that decrements that resource.
5. If event A can be linked to more than one other event, but cannot be linked
simultaneously to all of those other events, then the REA diagram should show that event
A is linked to a minimum of 0 of each of those other events.

Once all attributes have been assigned to tables, what are the basic requirements for designing well-structured relational
2. databases?
Your Answer:
.

1. Every table must have a primary key

2. Other nonkey attributes in each table must be either a fact about the thing designated by
the primary key or foreign keys used to link that table to another table
3. Each attribute in every table is single-valued

Explain these terms and their use in implementing relationships: primary key, foreign key and concatenated key.
3. Your Answer:
.

A primary key is an attribute, or combination of attributes, that uniquely identifies each row in a table. Every table must have
a primary key. A foreign key is an attribute included in a relational table that is the primary key of another table. Foreign keys
are used to implement one-to-one and one-to-many relationships. A concatenated key is a multiple-attribute primary key.
Concatenated keys are used to implement many-to-many relationships.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 17 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 12:07 PM (UTC/GMT)
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Submitted:

Describe the primary key, foreign keys, and other attributes associated with the "Receive Inventory" table name.
1. Your Answer:
.

The primary key is the receiving report number. The foreign keys are the warehouse number, supplier number, employee
(receiving) number, and employee (warehouse) number.

Discuss the cardinalities involved with rental transactions.

2. Your Answer:
.

The minimum cardinality of 1 reflects the fact that customers typically pay first, prior to taking possession of the item. The
maximum cardinality is many because there may be additional charges imposed when the item is returned. The cardinality
pair associated with the Rent Item event has a 0 minimum and 1 maximum because the Receive Cash event occurs first and
is linked to one, and only one, specific rental event. The relationship between the Rent Item and Return Item events is 1:1 to
reflect the fact that the rental of each specific item is individually tracked.

Explain the use of the Locations feature.

3. Your Answer:
.

Some entities, such as Warehouses or Financial Institutions store information about the location where resources are stores
and where certain events take place. The cardinality from the Warehouse to the Inventory item has a 0 minimum and N
maximum. This location feature makes the evaluation of performance possible.

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Location on Site: Chapter 18 > Study Guide > Essay Questions You answered 2 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 12:21 PM (UTC/GMT)
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Submitted:

Why is system development planning an important step in system development?

1. Your Answer:
.

1. Consistency. Planning enables the system's goals and objectives to correspond to the
organization's overall strategic plan.
2. Efficiency. Systems are more efficient, subsystems are coordinated, and there is a sound
basis for selecting new applications for development.
3. Cutting edge. The company remains abreast of the ever-present changes in information
technology.
4. Lower costs. Duplication, wasted effort, and cost and time overruns are avoided. The
system is less costly and easier to maintain.
5. Adaptability. Management is better prepared for future resource needs, and employees
are better prepared for the changes that will occur.

What is a feasibility study and how is it used?

2. Your Answer:
.

Also known as a "business case", it is prepared during systems analysis and updates as necessary during the remaining steps
in the SDLC. The extent of these studies varies, depending on the size and nature of the system. For example, the study for a
large-scale system is generally quite extensive, whereas one for a desktop system might be conducted informally. The
steering committee uses the study to decide whether to terminate a project, proceed unconditionally, or proceed if specific
problems are resolved.

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Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 19 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 12:18 PM (UTC/GMT)
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Submitted:

What are the risks of outsourcing?

1. Your Answer:
.

1. Inflexibility. Many outsourcing contracts are long-term.

2. Loss of control. There is a risk of losing control of its system and data and of its
confidential data being shared with others.
3. Reduced competitive advantage. Companies can lose a fundamental understanding of
their information systems needs and how the system can provide it with competitive
advantages.
4. Locked-in system. It is expensive and difficult to reverse outsourcing.
5. Unfulfilled goals. Many of the expected benefits and goals of outsourcing are not realized.
6. Poor service. Complaints include lack of responsiveness by the outsourcing company.
7. Increased risk.

What are the benefits of end-user computing?

2. Your Answer:
.

1. User creation, control, and implementation. Accountants and other end users, rather than
the information systems department, control the development process.
2. Systems that meet user needs. When end users develop their own systems, the systems
are more likely to meet the users' needs.
3. Timeliness. Much of the lengthy delay inherent in the traditional systems development
process is avoided, such as expensive and time-consuming cost/benefit analysis, detailed
requirements definitions, and the inevitable delays and red tape inherent in the approval
process.
4. Freeing up systems resources. The more information needs users can meet the more
time the information system department can spend on other information and
maintenance activities.
5. Versatility and ease of use. Most end-user computing software is easy to understand and
use.

What are the three tools companies can use to improve the systems development process?
3. Your Answer:
.

The three tools a company can use to improve the systems development process are business process reengineering,
prototyping, and computer-aided software engineering.

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Site Title: Accounting Information Systems, 11E Summary of Results

Book Title: Accounting Information Systems, 11/e
All 3 questions in this activity are essays, which are not
Book Author: Romney scored by the system.

Location on Site: Chapter 20 > Study Guide > Essay Questions You answered 3 questions,and left 0 questions blank.
Date/Time August 7, 2014 at 12:25 PM (UTC/GMT)
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Submitted:

Once a design alternative has been selected, the project team develops the conceptual design specifications for which
1. elements:
Your Answer:
.

1. Output. Because the system is designed to meet users' information needs, output
specifications must be prepared first.
2. Data storage. Development decisions must assist with how data should be stored and
what type of file or database to use.
3. Input. Design considerations must include which data to enter and where, when, and how
to collect data.
4. Processing procedures and operations. Design considerations must include how to
process the input and stored data to produce the sales report and the sequence in which
the processes must be performed.

Program design includes what steps.

2. Your Answer:
.

1. Determining user needs

2. Developing a plan
3. Writing program instructions (code)
4. Testing the program
5. Documenting the program
6. Training program users
7. Installing the system
8. Using and modifying the system

Describe the physical design phase and the elements involved.

3. Your Answer:
.

During the physical design phase the company determines how to implement the results of the conceptual design phase. This
requires detailed specifications be developed concerning the following:

1. Input and output design needs,

2. File and database design needs,

3. Program design specifications,

4. Design of AIS procedures, and

5. Design of AIS controls.

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