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Accounting Information Systems, 3rd Edition TEST BANK by Vernon Richardson, Verified Chapters 1 - 18, Complete Newest Version $17.99   Add to cart

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Accounting Information Systems, 3rd Edition TEST BANK by Vernon Richardson, Verified Chapters 1 - 18, Complete Newest Version

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Accounting Information Systems, 3rd Edition TEST BANK by Vernon Richardson, Verified Chapters 1 - 18, Complete Newest Version

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  • September 7, 2024
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  • 2024/2025
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Accounting Information Systems, 3rd Edition TEST BANK by
Vernon Richardson, Verified Chapters 1 - 18, Complete Newest
Version
Data - ANSWER:facts that are collected, recorded, stored, and processed by an
information system

Information - ANSWER:data that has been organized and processed to provide
meaning and improve decision making process

Characteristics of Useful Information - ANSWER:1 Relevant
2 Reliable
3 Complete
4 Timely
5 Understandable
6 Verifiable
7 Accessible

Relevant - ANSWER:Reduces uncertainty, improves decision making, or confirms or
corrects prior expectations

Reliable - ANSWER:Free from error or bias; accurately represents organization events
or activities

Complete - ANSWER:Does not omit important aspects of the events or activities it
measures

Timely - ANSWER:Provided in time for decision makers to make decisions

Understandable - ANSWER:Presented in a useful and intelligible format

Verifiable - ANSWER:Two independent, knowledgeable people produce the same
information

Accessible - ANSWER:Available to users when they need it and in a format they can
use

Revenue Cycle - ANSWER:where goods and services are sold for cash or a future
promise to receive cash

Expenditure Cycle - ANSWER:where companies purchase inventory for resale or raw
materials to use in producing products in exchange for cash or a future promise to
pay cash

,Production/Conversion Cycle - ANSWER:where raw materials are transformed into
finished goods

Human Resources/Payroll Cycle - ANSWER:where employees are hired, trained,
compensated, evaluated, promoted and terminated

Financing Cycle - ANSWER:where companies sell shares in the company to investors
and borrow money, and where investors are paid dividends and interest is paid on
loans

Primary Activities in Value Chain - ANSWER:1 Inbound Logistics
2 Operations
3 Outbound Logistics
4 Marketing and Sales
5 Service

Inbound Logistics - ANSWER:consists if receiving, storing , and distributing the
materials an organization uses to create the services and products it sells

Operations - ANSWER:activities transform inputs into final products or services

Outbound Logistics - ANSWER:activities distribute finished products or services to
customers

Marketing and Sales - ANSWER:activities help customers buy the organization's
products or services

Service - ANSWER:activities provide post-sale support to customers

Support Activities of Value Chain - ANSWER:1 Firm Infrastructure
2 HR
3 Technology
4 Purchasing

Firm Infrastructure - ANSWER:accounting, finance, legal, and general administrative
activities that allow an organization to function

Human Resources - ANSWER:activities include recruiting, hiring, training, and
compensating employees

Technology - ANSWER:activities improve a product or service

Purchasing - ANSWER:activities procure raw materials, supplies, machinery, and the
buildings used to carry out the primary activities

Four operations of Data Processing Cycle - ANSWER:1 Data Input
2 Data Storage

, 3 Data Processing
4 Information Output
*Users are also involved in entire process

Two steps in Data Input - ANSWER:1 Capture transaction data (each activity,
resource affected, and people participating)
2 Verify captured data are accurate and complete

Source Documents - ANSWER:Documents used to capture transaction data at its
source - when the transaction takes place

Turnaround Document - ANSWER:Records of company data sent to an external party
and then returned to the system as input (sales orders, purchase orders, employee
time cards)

Source Data Automation - ANSWER:The collection of transaction data in machine
readable form at the time and place of origin

Six Data Storage Concepts - ANSWER:1 Ledgers
2 Coding Techniques
3 Chart of Accounts
4 Journals
5 Audit Trail
6 Computer Based Storage Concepts

General Ledger - ANSWER:Ledger that contains summary-level data for every asset,
liability, equity, revenue, and expense account of the organization

Subsidiary Ledger - ANSWER:Ledger used to record detailed data for a general ledger
account with many individual sub-accounts such as accounts receivable, inventory
and accounts payable

Control Account - ANSWER:Title given to a general ledger account that summarizes
the total amounts recorded in a subsidiary ledger

Coding - ANSWER:The systematic assignment of numbers or letters to items to
classify and organize them

Sequence Code - ANSWER:Items are numbered consecutively so that gaps in the
sequence code indicate missing items that should be investigated.

Block Code - ANSWER:Blocks of numbers that are reserved for specific categories of
data, thereby helping to organize the data (chart of accounts)

Group Code - ANSWER:Two or more subgroups of digits that are used to code an
item. A group code is often used in conjunction with a block code.

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