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Question 1

● It identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies.
● It gets and records the financial effects of the firm’s transactions.
● It distributes transaction information to operations personnel to coordinate many tasks.

Answer 1

ACCOUNTING INFORMATION SYSTEM

Question 2

_______ is an event that affects or is of interest to the organization and is processed by its information system as a unit of work.

Answer 2

transaction

Question 3

TYPES OF TRANSACTIONS
(2)

Answer 3

Financial Transaction
Non-Financial

Question 4

Economic events that affect the assets and equities of an entity.

Answer 4

Financial Transaction

Question 5

All other events processed by the organization’s information system.

Answer 5

Non-Financial

Question 6

AIS SUBSYSTEMS
(3)

Answer 6

Transaction Processing System
General ledger/ Financial
Management Reporting System
(MRS)

Question 7

(TPS) Supports daily business operations

Answer 7

Transaction Processing System

Question 8

Reporting System (GL/FRS) Produces financial statements and reports

Answer 8

General ledger/Financial

Question 9

Produces special-purpose reports for
internal use.

Answer 9

Management Reporting System
(MRS)

Question 10

THE GENERAL AIS MODEL

(5)

Answer 10

DATA COLLECTION
DATA PROCESSING
DATA MANAGEMENT
INFORMATION GENERATION

Question 11

Users of financial information may be both _____ and _____ to the organization.

Answer 11

internal and external

Question 12

Users of financial information may be both _____ and _____ to the organization.

Answer 12

internal and external

Question 13

1.Internal users (Primary Users) of accounting information include the following:

Answer 13

Management:
Employees:
Owners:

Question 14

2.External users (Secondary Users) of accounting information include the
following:

Answer 14

Creditors
Tax Authorities
Investors
Customers
Regulatory Authorities

Question 15

● Accountants are the domain experts and responsible for the conceptual design of the AIS.
● Conceptual system design involves specifying the criteria for identifying delinquent customers and the information that needs to be reported.

Answer 15

Accountants as System Designers

Question 16

Certify the fairness of the presentation of financial statements.

Answer 16

External Auditors

Question 17

An independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization

Answer 17

Internal Audit

Question 18

Investigate anomalies and gather evidence of fraud.

Answer 18

Fraud Audit