Unit 1 Chapter 1

Question 1

What is an accounting information system?

Answer 1

System of collecting and processing data and communicating financial info to decision-makers

Question 2

What is an accounting cycle?

Answer 2

A process that begins with the analysis of business transactions and ends with the preparation of a post-closing trial balance.

Question 3

What are computerized accounting systems referred as?

Answer 3

Electronic Data Processing Systems (EDP)

Question 4

What is some of the basic info handled by EDP systems?

Answer 4

All steps involved in the recording process, from initial data entry to preparation of the financial statements.

Question 5

Why did most companies upgrade their accounting information systems?

Answer 5

In response to the Sarbanes-Oxley Act. (SOX)

Question 6

Do the accounting concepts and principles change depending on whether a system is computerized or manual?

Answer 6

No

Question 7

What are business transactions?

Answer 7

A businesses’ economic events recorded by accountants.

Question 8

What are the types of business transactions?

Answer 8

External and internal

Question 9

What are external business transactions?

Answer 9

Economic events between the company and an outside enterprise.