Solutions Manual_
Accounting Information Systems The Crossroads Of Accounting And It 2nd Edition,
By Donna Kay & Ali Ovlia
All Chapters Covered| Verified Solutions| Grade A+
From: [Bestmaxsolutions.stuvia
,Active Review
1.1 Refer To The Chapter Opener, Meet Business Intelligence. In Your Opinion, How Can Business
Intelligence Create Value Using The Accounting System?
Students’ Opinion May Differ. However, Their Opinion Should Include: Increase Profitability, Improve
Customer Relationship, Increase Sales By Targeting The Right Customer Category, And In General
Improving All Aspects Of Business Activities.
1.2 Refer To The Chapter Opener, Meet Business Intelligence. Discuss The Importance Of Sales
Data In Creating Business Intelligence For An Organization.
Business Intelligence Allows Organization To Continuously Monitor Their Sales Transaction. By
Monitoring Sales, Enterprise Can Fine-Tune Other Business Processes Such As Purchasing, Production,
Advertising, And Customer Service.
1.3 Pick Your Favorite Accounting Insight From Chapter 1. Discuss Why It’s Your Favorite.
The Answer To This Question Depends On The Student Selection And His/Her Reason For Selecting It.
1.4 What Are The Modules In The Baseline Accounting System Model? Discuss The Purposes And
Transactions Associated With Each Module.
1. Vendors. This Module Encapsulates All Data And Business Processes Related To Vendors. The
Transactions Associated With Vendors Module Are: Create Purchase Order, Receive Items, And Enter
Bills.
2. Customers. This Module Encapsulates All Data And Business Processes Related To Customers. The
Processes Associated With Customers Module Are: Create Invoice, And Receive Customer Payments.
3. Employees. This Module Encapsulates All Data And Business Processes Related To Employees. The
Processes Associated With Vendor Module Are: Enter Time And Calculate Payroll.
4. Banking. This Module Encapsulates All Data And Business Processes Related To Organization Banking.
The Processes Associated With Banking Module Are: Pay Bills, Make Deposit, Pay Employees, And Pay
Payroll Liabilities.
5. Financials. This Module Encapsulates All Data And Business Processes Related To The Organization
Financials. The Processes Associated With Financial Module Are: Adjusting Entries, Correcting Entries,
Closing, And Ad-Hoc Financial Activities.
6. Reports. This Module Encapsulates All Data And Business Processes Related To The Accounting Reports.
The Processes Associated With Reports Module Are: Management Reports, Tax Reports, External
Financial Reports, And Sustainability Reports.
1.5 Discuss How The Features Of A Spreadsheet And A Database Are Similar And How They Are Different.
A Spreadsheet Shows Rows And Columns Of A Table And That Is Same As Database Table’s Records
And Fields Features. Actually, A Spreadsheet Row Is A Record And A Column Is A Field In A Database
Table
1.6 Discuss The Potential Risks If A Company’s Accounting System Is Not Well Secured.
Unauthorized Access To The Accounting Data And Software Could Result In Valuable Information Being
Stolen Or Damaged And Virus Or Other Malicious Software Damage Accounting Systems Software.
1.7 Discuss The Benefits Of An Integrated Enterprise System.
,An Integrated Enterprise System Allows Data To Be Shared Among Various Enterprise Departments. For
Example, An Advertising Department Can Use Data Collected About Sales To Cluster Customers Into
Categories And Target Customers-Categories With Different Adverting Methods.
1.8 Discuss How Value Chain Activities Are Related To Accounting Transaction Cycles.
The Value Chain Facilitates Coordination Of Activities With Suppliers And Customers, Including
Purchasing And Sales Transactions.
1.9 Discuss The Significance Of Information Technology To The Accounting Professional.
Today, Most Accounting Systems Are Computerized Systems. These Accounting Systems Are Installed
On The Enterprise Computers And Used On The Enterprise Internal Networks As Well As The Internet.
To Effectively Work With Computers And Use Accounting Systems, Accountants Must Know Enough
About Computers And Networks To Be Able To Use Computerized Accounting Systems.
1.10 Discuss Problems That Enterprises May Experience With Shadow Data.
Shadow Data Little Or Lack Of Documentation And Lack Or Inadequate Security And Control Are Two
Major Problems Experienced By Enterprises.
Key Terms Check
1.11 Match The Following Terms And D 1. An Organizing Framework For Business Processes,
Beginning With Vendors And Ending With Customers
Definitions. H 2. Exchanges Or Transactions Between An Enterprise
a. Enterprise System And Its Customers
b. Integrated Enterprise System E 3. Accounting Transactions Related To Specific
c. Business Processes Business Processes
d. Value Chain B 4. Shares Data Across Functional Areas Within The
e. Transaction Cycles Enterprise
f. Purchasing Cycle G 5. Transactions With Employees
g. Payroll Cycle C 6. Related Activities Performed By An Enterprise To
h. Sales Cycle Create Value By Transforming Input Into Output
i. Baseline Accounting System A 7. A System That Supports Business Activities
Throughout The Enterprise, Including Inputs, Processing,
And Outputs
F 8. Transactions Related To Purchasing Items From
Vendors
I 9. A Model That Provides An Enterprise-Wide View Of The
Firm’s Accounting System
, F 1. A Module That Relates To Output From The
1.12 Match The Following Terms And Accounting System.
E 2. A Module That Includes Adjusting And Correcting
Definitions. Entries.
a. Vendors Module A 3. A Module Related To Purchasing Goods And Services.
b. Customers Module D 4. A Module That Involves Cash Received And Cash Paid.
c. Employees Module C 5. A Module Related To The Payroll Cycle.
d. Banking Module B 6. A Module Related To Selling The Customer A
e. Financial Module Product Or Service.
f. Reports Module M 7. Reports Used To Evaluate An Enterprise’s
g. Adjusting Entries Sustainability Performance.
h. Correcting Entries K 8. Reports Used When Filing Federal, State, And
i. Closing Entries Local Returns.
j. Financial Reports L 9. Reports Prepared To Assist Managers In Making
k. Tax Reports Decisions.
l. Management Reports J 10. Reports That Include A Company’s Income
m. Sustainability Reports Statement, Balance Sheet, And Statement Of Cash Flows.
G 11. Entries To Bring Accounts Up To Date At Year End.
I 12. Zeros Out Income And Expense Accounts At
Year End.
H 13. Entries To Correct Errors.
, C 1. A Unique Identifier For Each Record.
1.13 Match The Following Terms And G 2. An Online Application That Permits Users To
Definitions. View Data In A Multidimensional Way.
a. Field B 3. A Collection Of Related Database Fields.
b. Record F 4.Data Analytics And Predictive Modeling Used To
c. Primary Key Gain Insights From Data To Improve The Quality Of
d. Relational Database Business Decisions.
e. Operational Database A 5. A Piece Of Information.
f. Business Intelligence E 6. A Database That Stores Transactions Related To
g. Olap Cubes Business Operations.
D 7. A Collection Of Related Database Tables.
1.14 Match The Following Terms And G 1. A Framework For Organizing The Complex,
Multifaceted Undertaking Of Developing A System.
Definitions. K 2. Includes Testing Databases And Computer
a. People Programs For The New System.
b. Processes H 3. Includes Scheduling, Budgeting, And Staffing A
c. Technology Project.
d. Information Technology (It) I 4. Includes Evaluating New System Requirements.
e. It Architecture M 5. Using The New System On An Ongoing Basis And
f. It Infrastructure Maintaining And Updating It As Necessary.
g. System Development Life Cycle (Sdlc) L 6. Setting Up New It Hardware, Software, And
h. Plan Databases.
i. Analyze J 7. Prepare Models For Business Processes And
j. Design Databases For The New System.
k. Build/Buy B 8. One Of The Three Keys Of Opportunity That
l. Install Focuses On How Business Activities Are Impacted.
m. Deploy C 9. One Of The Three Keys Of Opportunity That
Focuses On Software, Hardware, And Networks.
A 10. One Of The Three Keys Of Opportunity That
Focuses On How Employees, Customers, And Vendors
Are Impacted.
D 11. Consists Of Software, Hardware, And Network
Technology Used By An Organization.
F 12. How Specific Software, Hardware And Networks
Are Used To Build It Architecture For An Enterprise.
E 13. The Design Or Blueprint For An Enterprise’s
Information Technology.
Practice Test
1.15 In Addition To Accounting Systems, Which Of The Following Are Member Of Enterprise Systems?
a. Scm And Ops
b. Crm And Scm
c. Hrm And Financial
d. Scm, Ops, Crm, And Hr (Correct Answer)
1.16 The Value Chain Is Useful For:
a. Coordinating Accounting System Activities.
b. Coordinating Activities With Suppliers And Customers (Correct Answer)
c. Linking Business Values Like A Chain.
, d. Everything We Do In A Business.
Accounting Information Systems The Crossroads Of Accounting And It 2nd Edition,
By Donna Kay & Ali Ovlia
All Chapters Covered| Verified Solutions| Grade A+
From: [Bestmaxsolutions.stuvia
,Active Review
1.1 Refer To The Chapter Opener, Meet Business Intelligence. In Your Opinion, How Can Business
Intelligence Create Value Using The Accounting System?
Students’ Opinion May Differ. However, Their Opinion Should Include: Increase Profitability, Improve
Customer Relationship, Increase Sales By Targeting The Right Customer Category, And In General
Improving All Aspects Of Business Activities.
1.2 Refer To The Chapter Opener, Meet Business Intelligence. Discuss The Importance Of Sales
Data In Creating Business Intelligence For An Organization.
Business Intelligence Allows Organization To Continuously Monitor Their Sales Transaction. By
Monitoring Sales, Enterprise Can Fine-Tune Other Business Processes Such As Purchasing, Production,
Advertising, And Customer Service.
1.3 Pick Your Favorite Accounting Insight From Chapter 1. Discuss Why It’s Your Favorite.
The Answer To This Question Depends On The Student Selection And His/Her Reason For Selecting It.
1.4 What Are The Modules In The Baseline Accounting System Model? Discuss The Purposes And
Transactions Associated With Each Module.
1. Vendors. This Module Encapsulates All Data And Business Processes Related To Vendors. The
Transactions Associated With Vendors Module Are: Create Purchase Order, Receive Items, And Enter
Bills.
2. Customers. This Module Encapsulates All Data And Business Processes Related To Customers. The
Processes Associated With Customers Module Are: Create Invoice, And Receive Customer Payments.
3. Employees. This Module Encapsulates All Data And Business Processes Related To Employees. The
Processes Associated With Vendor Module Are: Enter Time And Calculate Payroll.
4. Banking. This Module Encapsulates All Data And Business Processes Related To Organization Banking.
The Processes Associated With Banking Module Are: Pay Bills, Make Deposit, Pay Employees, And Pay
Payroll Liabilities.
5. Financials. This Module Encapsulates All Data And Business Processes Related To The Organization
Financials. The Processes Associated With Financial Module Are: Adjusting Entries, Correcting Entries,
Closing, And Ad-Hoc Financial Activities.
6. Reports. This Module Encapsulates All Data And Business Processes Related To The Accounting Reports.
The Processes Associated With Reports Module Are: Management Reports, Tax Reports, External
Financial Reports, And Sustainability Reports.
1.5 Discuss How The Features Of A Spreadsheet And A Database Are Similar And How They Are Different.
A Spreadsheet Shows Rows And Columns Of A Table And That Is Same As Database Table’s Records
And Fields Features. Actually, A Spreadsheet Row Is A Record And A Column Is A Field In A Database
Table
1.6 Discuss The Potential Risks If A Company’s Accounting System Is Not Well Secured.
Unauthorized Access To The Accounting Data And Software Could Result In Valuable Information Being
Stolen Or Damaged And Virus Or Other Malicious Software Damage Accounting Systems Software.
1.7 Discuss The Benefits Of An Integrated Enterprise System.
,An Integrated Enterprise System Allows Data To Be Shared Among Various Enterprise Departments. For
Example, An Advertising Department Can Use Data Collected About Sales To Cluster Customers Into
Categories And Target Customers-Categories With Different Adverting Methods.
1.8 Discuss How Value Chain Activities Are Related To Accounting Transaction Cycles.
The Value Chain Facilitates Coordination Of Activities With Suppliers And Customers, Including
Purchasing And Sales Transactions.
1.9 Discuss The Significance Of Information Technology To The Accounting Professional.
Today, Most Accounting Systems Are Computerized Systems. These Accounting Systems Are Installed
On The Enterprise Computers And Used On The Enterprise Internal Networks As Well As The Internet.
To Effectively Work With Computers And Use Accounting Systems, Accountants Must Know Enough
About Computers And Networks To Be Able To Use Computerized Accounting Systems.
1.10 Discuss Problems That Enterprises May Experience With Shadow Data.
Shadow Data Little Or Lack Of Documentation And Lack Or Inadequate Security And Control Are Two
Major Problems Experienced By Enterprises.
Key Terms Check
1.11 Match The Following Terms And D 1. An Organizing Framework For Business Processes,
Beginning With Vendors And Ending With Customers
Definitions. H 2. Exchanges Or Transactions Between An Enterprise
a. Enterprise System And Its Customers
b. Integrated Enterprise System E 3. Accounting Transactions Related To Specific
c. Business Processes Business Processes
d. Value Chain B 4. Shares Data Across Functional Areas Within The
e. Transaction Cycles Enterprise
f. Purchasing Cycle G 5. Transactions With Employees
g. Payroll Cycle C 6. Related Activities Performed By An Enterprise To
h. Sales Cycle Create Value By Transforming Input Into Output
i. Baseline Accounting System A 7. A System That Supports Business Activities
Throughout The Enterprise, Including Inputs, Processing,
And Outputs
F 8. Transactions Related To Purchasing Items From
Vendors
I 9. A Model That Provides An Enterprise-Wide View Of The
Firm’s Accounting System
, F 1. A Module That Relates To Output From The
1.12 Match The Following Terms And Accounting System.
E 2. A Module That Includes Adjusting And Correcting
Definitions. Entries.
a. Vendors Module A 3. A Module Related To Purchasing Goods And Services.
b. Customers Module D 4. A Module That Involves Cash Received And Cash Paid.
c. Employees Module C 5. A Module Related To The Payroll Cycle.
d. Banking Module B 6. A Module Related To Selling The Customer A
e. Financial Module Product Or Service.
f. Reports Module M 7. Reports Used To Evaluate An Enterprise’s
g. Adjusting Entries Sustainability Performance.
h. Correcting Entries K 8. Reports Used When Filing Federal, State, And
i. Closing Entries Local Returns.
j. Financial Reports L 9. Reports Prepared To Assist Managers In Making
k. Tax Reports Decisions.
l. Management Reports J 10. Reports That Include A Company’s Income
m. Sustainability Reports Statement, Balance Sheet, And Statement Of Cash Flows.
G 11. Entries To Bring Accounts Up To Date At Year End.
I 12. Zeros Out Income And Expense Accounts At
Year End.
H 13. Entries To Correct Errors.
, C 1. A Unique Identifier For Each Record.
1.13 Match The Following Terms And G 2. An Online Application That Permits Users To
Definitions. View Data In A Multidimensional Way.
a. Field B 3. A Collection Of Related Database Fields.
b. Record F 4.Data Analytics And Predictive Modeling Used To
c. Primary Key Gain Insights From Data To Improve The Quality Of
d. Relational Database Business Decisions.
e. Operational Database A 5. A Piece Of Information.
f. Business Intelligence E 6. A Database That Stores Transactions Related To
g. Olap Cubes Business Operations.
D 7. A Collection Of Related Database Tables.
1.14 Match The Following Terms And G 1. A Framework For Organizing The Complex,
Multifaceted Undertaking Of Developing A System.
Definitions. K 2. Includes Testing Databases And Computer
a. People Programs For The New System.
b. Processes H 3. Includes Scheduling, Budgeting, And Staffing A
c. Technology Project.
d. Information Technology (It) I 4. Includes Evaluating New System Requirements.
e. It Architecture M 5. Using The New System On An Ongoing Basis And
f. It Infrastructure Maintaining And Updating It As Necessary.
g. System Development Life Cycle (Sdlc) L 6. Setting Up New It Hardware, Software, And
h. Plan Databases.
i. Analyze J 7. Prepare Models For Business Processes And
j. Design Databases For The New System.
k. Build/Buy B 8. One Of The Three Keys Of Opportunity That
l. Install Focuses On How Business Activities Are Impacted.
m. Deploy C 9. One Of The Three Keys Of Opportunity That
Focuses On Software, Hardware, And Networks.
A 10. One Of The Three Keys Of Opportunity That
Focuses On How Employees, Customers, And Vendors
Are Impacted.
D 11. Consists Of Software, Hardware, And Network
Technology Used By An Organization.
F 12. How Specific Software, Hardware And Networks
Are Used To Build It Architecture For An Enterprise.
E 13. The Design Or Blueprint For An Enterprise’s
Information Technology.
Practice Test
1.15 In Addition To Accounting Systems, Which Of The Following Are Member Of Enterprise Systems?
a. Scm And Ops
b. Crm And Scm
c. Hrm And Financial
d. Scm, Ops, Crm, And Hr (Correct Answer)
1.16 The Value Chain Is Useful For:
a. Coordinating Accounting System Activities.
b. Coordinating Activities With Suppliers And Customers (Correct Answer)
c. Linking Business Values Like A Chain.
, d. Everything We Do In A Business.
