Solutions manual
to accompany
Accounting information
systems
5 edition
th
by
Parkes, Olesen and Blount
Prepared by
Alison Parkes
© John Wiley & Sons Australia, Ltd 2017
, Solutions manual to accompany: Accounting information systems 5e by Parkes et al.
Chapter 1: System fundamentals – Introduction
Discussion questions
1.1 Describe some inputs, processes and outputs of an accounting information
system.
(LO1, LO2, LO3)
Inputs: Sales order (record purchase requests from customers), purchase data (data about
purchases initiated with our vendors), Receiving data (data about arriving goods), shipping
data (data about goods sent to customers), invoices (received from vendors)
Processes: Check data is valid, sort data, manipulate data
Outputs: Invoice (sent to customer), cheque (sent to vendor), profit and loss report, accounts
receivable report
1.2 What is the difference between data and information?
(LO2)
Data are the raw facts relating to or describing an event. For example, data relating to a sale
could include the customer’s name, address, salesperson ID, the sale number, sale date, items
purchased, quantity purchased and so on. On its own this data is not all that useful.
However, through the application of rules and knowledge the data can be made meaningful,
thus converting it to information. For example, the collection of data relating to sales may be
summarised into sales by customer or sales by product, to provide information about high
spending customers or slow moving products.
1.3 What is information overload? Why might it happen? What are its
consequences?
(LO2)
Information overload refers to the situation where an individual has more information than
required and can’t meaningfully process this information when making a decision. It can
happen when data provided is not carefully selected (i.e. garbage dump), or where data
provided has not been summarized or organized in a manner that makes it comprehensible.
The potential consequences of information overload include the production of reports and
information that serves no purpose and deleterious decision making by employees who are
unable to synthesise the volume of information that they are exposed to.
© John Wiley and Sons Australia, Ltd 2017 1.1
to accompany
Accounting information
systems
5 edition
th
by
Parkes, Olesen and Blount
Prepared by
Alison Parkes
© John Wiley & Sons Australia, Ltd 2017
, Solutions manual to accompany: Accounting information systems 5e by Parkes et al.
Chapter 1: System fundamentals – Introduction
Discussion questions
1.1 Describe some inputs, processes and outputs of an accounting information
system.
(LO1, LO2, LO3)
Inputs: Sales order (record purchase requests from customers), purchase data (data about
purchases initiated with our vendors), Receiving data (data about arriving goods), shipping
data (data about goods sent to customers), invoices (received from vendors)
Processes: Check data is valid, sort data, manipulate data
Outputs: Invoice (sent to customer), cheque (sent to vendor), profit and loss report, accounts
receivable report
1.2 What is the difference between data and information?
(LO2)
Data are the raw facts relating to or describing an event. For example, data relating to a sale
could include the customer’s name, address, salesperson ID, the sale number, sale date, items
purchased, quantity purchased and so on. On its own this data is not all that useful.
However, through the application of rules and knowledge the data can be made meaningful,
thus converting it to information. For example, the collection of data relating to sales may be
summarised into sales by customer or sales by product, to provide information about high
spending customers or slow moving products.
1.3 What is information overload? Why might it happen? What are its
consequences?
(LO2)
Information overload refers to the situation where an individual has more information than
required and can’t meaningfully process this information when making a decision. It can
happen when data provided is not carefully selected (i.e. garbage dump), or where data
provided has not been summarized or organized in a manner that makes it comprehensible.
The potential consequences of information overload include the production of reports and
information that serves no purpose and deleterious decision making by employees who are
unable to synthesise the volume of information that they are exposed to.
© John Wiley and Sons Australia, Ltd 2017 1.1
