Solution Manual for Accounting Information
Systems, Global Edition, 15th Edition Romney
Steinbart
System - CORRECT ANSWERTwo or more interrelated components that interact to achieve a goal, often
composed of subsystems that support the larger system.
,Goal Conflict - CORRECT ANSWERWhen a subsystem's goals are inconsistent with the goals of another
subsystem or the system as a whole.
Goal Congruence - CORRECT ANSWERWhen a subsystem achieves its goals while contributing to the
organization's overall goal.
Data - CORRECT ANSWERFacts that are collected, recorded, stored, and processed by a system.
Information - CORRECT ANSWERData that have been organized and processed to provide meaning and
improve decision-making.
Information Overload - CORRECT ANSWERExceeding the amount of information a human mind can
absorb and process, resulting in a decline in decision-making quality and an increase in the cost of
providing information
Information Technology (IT) - CORRECT ANSWERThe computers and other electronic devices used to
store, retrieve, transmit, and manipulate data.
Value of Information - CORRECT ANSWERThe benefit provided by information less the cost of producing
it.
Business Process - CORRECT ANSWERA set of related, coordinated, and structured activities and tasks,
preformed by a person, a computer, or a machine that help accomplish a specific organizational goal.
Transaction - CORRECT ANSWERAn agreement between two entities to exchange goods or services, such
as selling inventory in exchange for cash; any other even that can be measured in economic terms by an
organization.
Transaction Processing - CORRECT ANSWERProcess of capturing transaction data, processing it, storing it
for later use, and producing information output, such as a managerial report or a financial statement
Give-Get Exchange - CORRECT ANSWERTransactions that happen a great many times, such as giving up
cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor.
,Business Processes or Transaction Cycles - CORRECT ANSWERThe major give-get exchanges that occur
frequently in most companies.
Revenue Cycle - CORRECT ANSWERActivities associated with selling goods and services in exchange for
cash or a future promise to receive cash.
Expenditure Cycle - CORRECT ANSWERActivities associated with purchasing inventory for resale or raw
materials in exchange for cash or a future promise to pay cash.
Production or Conversion Cycle - CORRECT ANSWERActivities associated with using labor, raw materials
and equipment to produce finished goods.
Human Resources/Payroll Cycle - CORRECT ANSWERActivities associated with hiring, training,
compensating, evaluating, promoting, and terminating employees.
Financing Cycle - CORRECT ANSWERActivities associated with raising money by selling shares in the
company to investors and borrowing money as well as paying dividends and interest.
General Ledger and Reporting System - CORRECT ANSWERInformation-processing operations involved in
updating the general ledger and preparing reports for both management and external parties.
Accounting Information System - CORRECT ANSWERA system that collects, records, stores, and
processes data to produce information for decision makers. It includes people, procedures and
instructions, data, software, information technology infrastructure, and internal controls and security
measures.
AIS Processes Data to Produce Information for Decision Makers - CORRECT ANSWERData > AIS >
Information > AIS/User > Decision
Predictive Analysis - CORRECT ANSWERThe use of data warehouses and complex algorithms to forecast
future events, based on historical trends and calculated probabilities.
, Factors influencing Design of the AIS - CORRECT ANSWEROrganizational Culture
Business Strategy
Information Technology
Value Chain - CORRECT ANSWERLinking together of all the primary and support activities in a business.
Value is added as a product passes through the chain.
Primary Activities - CORRECT ANSWERValue chain activities that produce, market, and deliver products
and services to customers and provide post-delivery service and support.
Support Activities - CORRECT ANSWERValue chain activities such as firm infrastructure, technology,
purchasing, and human resources that enable primary activities to be performed efficiently and
effectively.
Supply Chain - CORRECT ANSWERAn extended system that includes an organization's value chain as well
as its suppliers, distributor, and customers.
The Supply Chain Links - CORRECT ANSWERRaw Materials Supplier > Manufacture > Distributor >
Retailer > Consumer
Data Processing Cycle - CORRECT ANSWERThe four operations (data input, data storage, data
processing, and information output) performed on data to generate meaningful and relevant
information
Source Documents - CORRECT ANSWERDocuments used to capture transaction data at its source - when
the transaction takes place.
Examples include sales orders, purchase orders, and employee time cards.
Turnaround document - CORRECT ANSWERRecords of a company data sent to an external party and
then returned to the system as input. Turn-around documents are in machine-readable form to facilitate
their subsequent processing as input records.
Systems, Global Edition, 15th Edition Romney
Steinbart
System - CORRECT ANSWERTwo or more interrelated components that interact to achieve a goal, often
composed of subsystems that support the larger system.
,Goal Conflict - CORRECT ANSWERWhen a subsystem's goals are inconsistent with the goals of another
subsystem or the system as a whole.
Goal Congruence - CORRECT ANSWERWhen a subsystem achieves its goals while contributing to the
organization's overall goal.
Data - CORRECT ANSWERFacts that are collected, recorded, stored, and processed by a system.
Information - CORRECT ANSWERData that have been organized and processed to provide meaning and
improve decision-making.
Information Overload - CORRECT ANSWERExceeding the amount of information a human mind can
absorb and process, resulting in a decline in decision-making quality and an increase in the cost of
providing information
Information Technology (IT) - CORRECT ANSWERThe computers and other electronic devices used to
store, retrieve, transmit, and manipulate data.
Value of Information - CORRECT ANSWERThe benefit provided by information less the cost of producing
it.
Business Process - CORRECT ANSWERA set of related, coordinated, and structured activities and tasks,
preformed by a person, a computer, or a machine that help accomplish a specific organizational goal.
Transaction - CORRECT ANSWERAn agreement between two entities to exchange goods or services, such
as selling inventory in exchange for cash; any other even that can be measured in economic terms by an
organization.
Transaction Processing - CORRECT ANSWERProcess of capturing transaction data, processing it, storing it
for later use, and producing information output, such as a managerial report or a financial statement
Give-Get Exchange - CORRECT ANSWERTransactions that happen a great many times, such as giving up
cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor.
,Business Processes or Transaction Cycles - CORRECT ANSWERThe major give-get exchanges that occur
frequently in most companies.
Revenue Cycle - CORRECT ANSWERActivities associated with selling goods and services in exchange for
cash or a future promise to receive cash.
Expenditure Cycle - CORRECT ANSWERActivities associated with purchasing inventory for resale or raw
materials in exchange for cash or a future promise to pay cash.
Production or Conversion Cycle - CORRECT ANSWERActivities associated with using labor, raw materials
and equipment to produce finished goods.
Human Resources/Payroll Cycle - CORRECT ANSWERActivities associated with hiring, training,
compensating, evaluating, promoting, and terminating employees.
Financing Cycle - CORRECT ANSWERActivities associated with raising money by selling shares in the
company to investors and borrowing money as well as paying dividends and interest.
General Ledger and Reporting System - CORRECT ANSWERInformation-processing operations involved in
updating the general ledger and preparing reports for both management and external parties.
Accounting Information System - CORRECT ANSWERA system that collects, records, stores, and
processes data to produce information for decision makers. It includes people, procedures and
instructions, data, software, information technology infrastructure, and internal controls and security
measures.
AIS Processes Data to Produce Information for Decision Makers - CORRECT ANSWERData > AIS >
Information > AIS/User > Decision
Predictive Analysis - CORRECT ANSWERThe use of data warehouses and complex algorithms to forecast
future events, based on historical trends and calculated probabilities.
, Factors influencing Design of the AIS - CORRECT ANSWEROrganizational Culture
Business Strategy
Information Technology
Value Chain - CORRECT ANSWERLinking together of all the primary and support activities in a business.
Value is added as a product passes through the chain.
Primary Activities - CORRECT ANSWERValue chain activities that produce, market, and deliver products
and services to customers and provide post-delivery service and support.
Support Activities - CORRECT ANSWERValue chain activities such as firm infrastructure, technology,
purchasing, and human resources that enable primary activities to be performed efficiently and
effectively.
Supply Chain - CORRECT ANSWERAn extended system that includes an organization's value chain as well
as its suppliers, distributor, and customers.
The Supply Chain Links - CORRECT ANSWERRaw Materials Supplier > Manufacture > Distributor >
Retailer > Consumer
Data Processing Cycle - CORRECT ANSWERThe four operations (data input, data storage, data
processing, and information output) performed on data to generate meaningful and relevant
information
Source Documents - CORRECT ANSWERDocuments used to capture transaction data at its source - when
the transaction takes place.
Examples include sales orders, purchase orders, and employee time cards.
Turnaround document - CORRECT ANSWERRecords of a company data sent to an external party and
then returned to the system as input. Turn-around documents are in machine-readable form to facilitate
their subsequent processing as input records.
