Solutions manual
Accounting information systems controls and
processes
Leslie turner, andrea weickgenannt,
5th edition
Page 1-1
,Solutions manual for accounting information systems controls and processes 5e leslie
turner, andrea weickgenannt, mary kay copeland
Turner/accounting information systems, 5e solutions manual
Chapter 1
Concept check
1. D
2. D
3. B
4. C
5. C
6. C
7. B
8. A
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
Page 1-2
, 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
Page 1-3
, 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
Page 1-4
Accounting information systems controls and
processes
Leslie turner, andrea weickgenannt,
5th edition
Page 1-1
,Solutions manual for accounting information systems controls and processes 5e leslie
turner, andrea weickgenannt, mary kay copeland
Turner/accounting information systems, 5e solutions manual
Chapter 1
Concept check
1. D
2. D
3. B
4. C
5. C
6. C
7. B
8. A
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
Page 1-2
, 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
Page 1-3
, 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
Page 1-4
