ACC 406 Questions and Answers|2025 Revised
Update | 100% Correct Complete Solutions
accounting information system (AIS)
a system that collects, records, stores, and processes business data to produce information for
decision makers
decision makers
internal users - management, employees
external users - stockholders, creditors, customers, government, financial institutions
the accounting process
1. capture transaction data on source documents
2. journalize transactions
3. post transactions to ledger
4. prepare trial balance
5. journalize and post adjusting entries
6. prepare adjusted trial balance
7. prepare financial statements
8. journalize and post closing entries
9. prepare post-closing trial balance
problems with the traditional view of accounting
- transactions-oriented as opposed to events-oriented
- narrow focus on financial data
,- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
2 forms of computerized bookkeeping
1. COBOL (Common Business-Oriented Language) - custom built for each firm
2. accounting software package - off the shelf
the database approach
store all business data in one place, one time, in its most disaggregated form; events-oriented
enterprise wide repository
storage of all entity and event data in a single integrated repository
ERP system
span the entire enterprise and address all of the enterprise's resources; support cross-functional
integration
3-tier architecture of ERP system
1. presentation layer - what users see
2. application layer - number-crunching
3. database layer - where raw data is inputted
data
raw, unprocessed facts, that are useless without further processing
, information
data made meaningful
characteristics of useful information
- relevant
- reliable
- complete
- timely
- understandable
- verifiable
bit
binary digit that can take a value of 0 (turned off) or 1 (turned on)
byte
a group of bits (usually 8)
field
a group of related bytes
records
a group of related fields
file
a group of logical records
Update | 100% Correct Complete Solutions
accounting information system (AIS)
a system that collects, records, stores, and processes business data to produce information for
decision makers
decision makers
internal users - management, employees
external users - stockholders, creditors, customers, government, financial institutions
the accounting process
1. capture transaction data on source documents
2. journalize transactions
3. post transactions to ledger
4. prepare trial balance
5. journalize and post adjusting entries
6. prepare adjusted trial balance
7. prepare financial statements
8. journalize and post closing entries
9. prepare post-closing trial balance
problems with the traditional view of accounting
- transactions-oriented as opposed to events-oriented
- narrow focus on financial data
,- reporting is periodic and not real-time
- limited accessibility to information
- too high level of aggregation
- limited flexibility
2 forms of computerized bookkeeping
1. COBOL (Common Business-Oriented Language) - custom built for each firm
2. accounting software package - off the shelf
the database approach
store all business data in one place, one time, in its most disaggregated form; events-oriented
enterprise wide repository
storage of all entity and event data in a single integrated repository
ERP system
span the entire enterprise and address all of the enterprise's resources; support cross-functional
integration
3-tier architecture of ERP system
1. presentation layer - what users see
2. application layer - number-crunching
3. database layer - where raw data is inputted
data
raw, unprocessed facts, that are useless without further processing
, information
data made meaningful
characteristics of useful information
- relevant
- reliable
- complete
- timely
- understandable
- verifiable
bit
binary digit that can take a value of 0 (turned off) or 1 (turned on)
byte
a group of bits (usually 8)
field
a group of related bytes
records
a group of related fields
file
a group of logical records
