Turner/Accounting Information Systems, 3e
Solutions Manual
Chapter 1
Concept Check
1. d
2. d
3. b
4. c
5. c
6. c
7. b
8. b
9. b
10. a
Discussion Questions
11. (SO 1) How might the sales and cash collection processes at a Wal-Mart store differ from
the sales and cash collection processes at McDonald’s? Wal-Mart sells items that are pre-
priced and bar coded with that price. Therefore the cash registers at Wal-Mart use bar
code scanners. However, McDonalds sells fast foods that are not bar coded. The cash
registers at McDonalds use touch screen systems that require a cashier to indicate the
, items purchased. The cash collection processes are not different. In both cases, the
employee collects the cash or credit card, and returns any change.
12. (SO 1) Can you think of any procedures in place at McDonald’s that are intended to ensure
the accuracy of your order? Student responses may vary, however, following are a few
examples: Often, at either the drive-through or the inside cash register, the customer
can see a screen that displays the items ordered. In addition, a fast food restaurant uses
pre-designed slots to hold certain types of menu items. When a customer orders a
particular sandwich, the person filling the order knows exactly which slot to pull the
sandwich from. Each customer receives a printed receipt with the items listed and the
customer can verify the accuracy.
13. (SO 1) How might the sales and cash collection processes at Boeing Co. (maker of
commercial passenger jets) differ from the sales and cash collection processes at
McDonald’s? Boeing does not sell to end-user consumers; rather, it sells to companies
such as airlines. Therefore Boeing does not have stores, nor inventory in stores, nor
cash registers to process sales. Boeing is more likely to maintain a sales force that visits
potential customers to solicit sales. Those sales may be entered by the salesperson into
a laptop computer connected to Boeing’s network. McDonald’s, on the other hand, sells
to consumers, uses order input touch screens at each location, and maintains supplies of
perishable food products.
14. (SO 1) Are there business processes that do not in some way affect accounting records or
financial statements? There may be processes that do not directly affect accounting
records (such as recruiting and hiring a new employee), but all processes have a direct
or indirect affect on accounting records. All processes use resources such as material or
employee time. Therefore, all processes have expenses related to those processes that
will affect the accounting records.
15. (SO 2) Briefly describe the five components of an accounting information system.
1. Work steps within a business process that capture accounting data as the
business process occurs.
2. Manual or computer-based records that capture the accounting data from
the business processes.
3. Internal controls within the business process that safeguard assets and
ensure accuracy and completeness of the data.
4. Work steps that process, classify, summarize, and consolidate the raw
accounting data.
, 5. Work steps that generate both internal and external reports.
16. (SO 2) Describe how sales data are captured and recorded at a restaurant such as
Applebee’s. At most Applebee’s restaurants, a server writes the order on a pad and
carries that pad to a cash register. The server enters the order on a touch screen
terminal. The order information is then displayed on a terminal in the kitchen. When
the customer has finished the meal, the server prints a check and delivers the check to
the table. The customer pays the server by using cash or a credit card. The server
processes the payment on the touch screen register and returns the change or credit
card slip to the customer.
17. (SO 2) What occurs in an accounting information system that classifies accounting
transactions? For each business process that affects accounting records, the accounting
information system must capture any resulting accounting data, record the data,
process it through classification, summarization, and consolidation, and generate
appropriate reports.
18. (SO 2) What are the differences between internal reports and external reports generated
by the accounting information system? Internal reports are used by management to
oversee and direct processes within the organization. External reports are the financial
statements used by investors and creditors to make decisions about investing or
extending credit to the organization.
19. (SO 3) What types of businesses are in the supply chain of an automobile manufacturer?
The types of businesses in an automaker’s supply chain are often manufacturers of parts
used in cars. This would include manufacturers of tires, batteries, steel, plastic, vinyl
and leather, as well as many other manufacturers making the thousands of parts in a
car.
20. (SO 3) When a company evaluates a supplier of materials, what kinds of characteristics
might be evaluated? The supplier’s characteristics that are likely to be evaluated include
price and payment terms, quality, reliability of the materials, as well as whether the
supplier can deliver materials when needed.
21. (SO 3) How do you think a company may be able to influence a supplier to meet its
business processing requirements? A company may be able to influence a supplier by
choosing only suppliers that meet expectations regarding the terms of price, quality, and
delivery timing. Those suppliers that do not meet these expectations may not be used in
the future. This exerts some influence over suppliers, as the suppliers will lose business
, if they do not meet the buyer’s requirements.
22. (SO 4) Describe any IT enablement that you have noticed at a large retail store such as
Wal-Mart or Target. The most noticeable IT enablement is the use of bar coded systems
on the products and how they are read by the cash registers.
23. (SO 4) How do you think the World Wide Web (WWW) has led to business process
reengineering at companies such as Lands End or J.Crew? Prior to the World Wide Web,
customers placed orders either on the phone or by mail. Both phone and mail orders
require employees to take the order and enter it into the computer system. Using online
sales, customers enter their own orders and no company personnel are needed to key
orders into the computer system. Therefore, there was a major change in the number of
people employed to key orders.
24. (SO 4) What two kinds of efficiency improvement result from business process
reengineering in conjunction with IT systems? The use of IT systems usually leads to two
kinds of efficiency improvements. First, the underlying processes are reengineered
(through rethinking and redesign) to be conducted more efficiently. Second, the IT
systems improve the efficiency of the underlying processes.
25. (SO 5) Explain the differences between a field, a record, and a file. A field is one set of
characters that make up a single data item. For example, last name would be a field in a
customer database. A record is a collection of related fields for a single entity. For
example, last name, first name, address, phone number, and credit card number fields
might make up a single customer record. A file is a collection of similar records. For
example, all customer records together make up a customer file.
26. (SO 5) Explain why random access files would be preferable to sequential access files when
payroll personnel are changing a pay rate for a single employee. When the desired action
is to access a single record, random access is preferable. If sequential access storage is
used, all records must be read in sequence until the desired record is reached. On the
other hand, random access allows a single record to be accessed without the necessity
of reading other records. This makes it more efficient to access a particular employee
record to change the pay rate.
27. (SO 5) Why do real-time systems require direct access files? If transactions are to be
processed online and in real-time, it is necessary that the computer access a single
record immediately. Thus, direct access files are required so the records can be
Solutions Manual
Chapter 1
Concept Check
1. d
2. d
3. b
4. c
5. c
6. c
7. b
8. b
9. b
10. a
Discussion Questions
11. (SO 1) How might the sales and cash collection processes at a Wal-Mart store differ from
the sales and cash collection processes at McDonald’s? Wal-Mart sells items that are pre-
priced and bar coded with that price. Therefore the cash registers at Wal-Mart use bar
code scanners. However, McDonalds sells fast foods that are not bar coded. The cash
registers at McDonalds use touch screen systems that require a cashier to indicate the
, items purchased. The cash collection processes are not different. In both cases, the
employee collects the cash or credit card, and returns any change.
12. (SO 1) Can you think of any procedures in place at McDonald’s that are intended to ensure
the accuracy of your order? Student responses may vary, however, following are a few
examples: Often, at either the drive-through or the inside cash register, the customer
can see a screen that displays the items ordered. In addition, a fast food restaurant uses
pre-designed slots to hold certain types of menu items. When a customer orders a
particular sandwich, the person filling the order knows exactly which slot to pull the
sandwich from. Each customer receives a printed receipt with the items listed and the
customer can verify the accuracy.
13. (SO 1) How might the sales and cash collection processes at Boeing Co. (maker of
commercial passenger jets) differ from the sales and cash collection processes at
McDonald’s? Boeing does not sell to end-user consumers; rather, it sells to companies
such as airlines. Therefore Boeing does not have stores, nor inventory in stores, nor
cash registers to process sales. Boeing is more likely to maintain a sales force that visits
potential customers to solicit sales. Those sales may be entered by the salesperson into
a laptop computer connected to Boeing’s network. McDonald’s, on the other hand, sells
to consumers, uses order input touch screens at each location, and maintains supplies of
perishable food products.
14. (SO 1) Are there business processes that do not in some way affect accounting records or
financial statements? There may be processes that do not directly affect accounting
records (such as recruiting and hiring a new employee), but all processes have a direct
or indirect affect on accounting records. All processes use resources such as material or
employee time. Therefore, all processes have expenses related to those processes that
will affect the accounting records.
15. (SO 2) Briefly describe the five components of an accounting information system.
1. Work steps within a business process that capture accounting data as the
business process occurs.
2. Manual or computer-based records that capture the accounting data from
the business processes.
3. Internal controls within the business process that safeguard assets and
ensure accuracy and completeness of the data.
4. Work steps that process, classify, summarize, and consolidate the raw
accounting data.
, 5. Work steps that generate both internal and external reports.
16. (SO 2) Describe how sales data are captured and recorded at a restaurant such as
Applebee’s. At most Applebee’s restaurants, a server writes the order on a pad and
carries that pad to a cash register. The server enters the order on a touch screen
terminal. The order information is then displayed on a terminal in the kitchen. When
the customer has finished the meal, the server prints a check and delivers the check to
the table. The customer pays the server by using cash or a credit card. The server
processes the payment on the touch screen register and returns the change or credit
card slip to the customer.
17. (SO 2) What occurs in an accounting information system that classifies accounting
transactions? For each business process that affects accounting records, the accounting
information system must capture any resulting accounting data, record the data,
process it through classification, summarization, and consolidation, and generate
appropriate reports.
18. (SO 2) What are the differences between internal reports and external reports generated
by the accounting information system? Internal reports are used by management to
oversee and direct processes within the organization. External reports are the financial
statements used by investors and creditors to make decisions about investing or
extending credit to the organization.
19. (SO 3) What types of businesses are in the supply chain of an automobile manufacturer?
The types of businesses in an automaker’s supply chain are often manufacturers of parts
used in cars. This would include manufacturers of tires, batteries, steel, plastic, vinyl
and leather, as well as many other manufacturers making the thousands of parts in a
car.
20. (SO 3) When a company evaluates a supplier of materials, what kinds of characteristics
might be evaluated? The supplier’s characteristics that are likely to be evaluated include
price and payment terms, quality, reliability of the materials, as well as whether the
supplier can deliver materials when needed.
21. (SO 3) How do you think a company may be able to influence a supplier to meet its
business processing requirements? A company may be able to influence a supplier by
choosing only suppliers that meet expectations regarding the terms of price, quality, and
delivery timing. Those suppliers that do not meet these expectations may not be used in
the future. This exerts some influence over suppliers, as the suppliers will lose business
, if they do not meet the buyer’s requirements.
22. (SO 4) Describe any IT enablement that you have noticed at a large retail store such as
Wal-Mart or Target. The most noticeable IT enablement is the use of bar coded systems
on the products and how they are read by the cash registers.
23. (SO 4) How do you think the World Wide Web (WWW) has led to business process
reengineering at companies such as Lands End or J.Crew? Prior to the World Wide Web,
customers placed orders either on the phone or by mail. Both phone and mail orders
require employees to take the order and enter it into the computer system. Using online
sales, customers enter their own orders and no company personnel are needed to key
orders into the computer system. Therefore, there was a major change in the number of
people employed to key orders.
24. (SO 4) What two kinds of efficiency improvement result from business process
reengineering in conjunction with IT systems? The use of IT systems usually leads to two
kinds of efficiency improvements. First, the underlying processes are reengineered
(through rethinking and redesign) to be conducted more efficiently. Second, the IT
systems improve the efficiency of the underlying processes.
25. (SO 5) Explain the differences between a field, a record, and a file. A field is one set of
characters that make up a single data item. For example, last name would be a field in a
customer database. A record is a collection of related fields for a single entity. For
example, last name, first name, address, phone number, and credit card number fields
might make up a single customer record. A file is a collection of similar records. For
example, all customer records together make up a customer file.
26. (SO 5) Explain why random access files would be preferable to sequential access files when
payroll personnel are changing a pay rate for a single employee. When the desired action
is to access a single record, random access is preferable. If sequential access storage is
used, all records must be read in sequence until the desired record is reached. On the
other hand, random access allows a single record to be accessed without the necessity
of reading other records. This makes it more efficient to access a particular employee
record to change the pay rate.
27. (SO 5) Why do real-time systems require direct access files? If transactions are to be
processed online and in real-time, it is necessary that the computer access a single
record immediately. Thus, direct access files are required so the records can be
