Accounting and Information Systems Overview

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Questions and Answers

What degree did Mark G. Simkin earn from Brandeis University?

Ph.D.

M.S.

A.B. (correct)

M.B.A.

Which university is Jacob M. Rose associated with as a professor?

Texas A&M University

University of California, Berkeley

University of Hawaii

University of New Hampshire (correct)

What role did Mark G. Simkin hold in California, Hawaii, and Nevada?

Auditor

Financial Analyst

Research Analyst

Computer Consultant (correct)

In which journal has Mark G. Simkin NOT published?

The Accounting Review Signup and view all the answers

At which university did Jacob M. Rose serve as director of the Master of Science in Accounting Program?

University of New Hampshire Signup and view all the answers

How many articles has Mark G. Simkin authored?

More than 100 Signup and view all the answers

What prestigious exam did Jacob M. Rose pass?

CPA exam Signup and view all the answers

At which institution did Mark G. Simkin teach before joining the University of Nevada?

University of Hawaii Signup and view all the answers

What is a primary function of an accounting information system (AIS)?

To create needed information for its users. Signup and view all the answers

Which area is NOT typically supported by AIS?

Network security management Signup and view all the answers

What role do non-accountants have in relation to an AIS?

They assist in identifying the information needed for decision-making. Signup and view all the answers

For effective use of information created by an AIS, what is essential from individuals in subsystems?

They should help AIS developers identify their information needs. Signup and view all the answers

The study of AISs is best characterized by what aspect?

The processes it facilitates and the information it generates. Signup and view all the answers

In which area are AISs commonly NOT employed?

Public relations management Signup and view all the answers

Which of the following is NOT a function of AIS?

Generating real-time social media analytics. Signup and view all the answers

What defines an accounting information system (AIS)?

A collection of data and processing procedures. Signup and view all the answers

Why have managers become frustrated with traditional overhead cost assignment methods?

Because automation has reduced the relationship between labor and overhead costs. Signup and view all the answers

How do activity-based costing (ABC) systems benefit organizations?

By tracking costs associated with specific activities. Signup and view all the answers

What strategic advantage does implementing ABC systems provide?

It enables examination and reengineering of business processes. Signup and view all the answers

What was a significant outcome for Chrysler after implementing activity-based costing?

They discovered that some parts were underestimated in cost by 30 times. Signup and view all the answers

In which area is corporate performance measurement (CPM) particularly useful?

To trace inefficiencies back to responsible parties. Signup and view all the answers

What is a key characteristic of responsibility accounting?

It attributes costs and revenues to specific departments or individuals. Signup and view all the answers

What significant shift has occurred in the use of ABC techniques in recent years?

They have become more common due to advances in computerized systems. Signup and view all the answers

What benefit does ABC provide for e-commerce businesses?

It can answer queries about production costs and resource allocation. Signup and view all the answers

What is one of the main focuses of Part One of the book?

Introduction to Accounting Information Systems Signup and view all the answers

What significant topic is covered in Chapter 4?

Organizing and Manipulating Data in Databases Signup and view all the answers

Which chapter discusses the tools used for documenting business processes?

Chapter 6 Signup and view all the answers

What does the chapter on Information Technology Auditing primarily explore?

The Audit Function and IT Auditor's Toolkit Signup and view all the answers

Which of the following best defines 'Normalization' as mentioned in Chapter 3?

A process that eliminates redundancy in databases Signup and view all the answers

What is discussed in relation to internal control systems in Chapter 9?

1992 COSO Report and Risk Assessment Signup and view all the answers

Which chapter introduces the concept of 'Electronic Business'?

Chapter 14 Signup and view all the answers

What type of processes does Chapter 7 focus on regarding accounting information systems?

Business Process Management and Analysis Signup and view all the answers

What does Chapter 15 introduce related to accounting software?

The Importance of Integrated Accounting Software Signup and view all the answers

Which chapter focuses on computer crimes and ethical issues?

Chapter 11 Signup and view all the answers

In which chapter can you find the concept of 'Business Process Reengineering'?

Chapter 8 Signup and view all the answers

What is a key element discussed in Chapter 13 regarding accounting systems?

Systems Development Life Cycle Signup and view all the answers

Which chapter primarily discusses 'Computer Controls'?

Chapter 10 Signup and view all the answers

Which chapter emphasizes the importance of documentation in accounting information systems?

Chapter 6 Signup and view all the answers

What is an important criticism of traditional accounting information systems (AIS)?

They often ignore key business activities. Signup and view all the answers

How has the definition of an AIS evolved in recent years?

It is now considered an enterprise-wide system. Signup and view all the answers

What does cloud computing enable accountants to do?

Increase IT capacity without new infrastructure investment. Signup and view all the answers

Which of the following best describes how AISs are perceived today?

As essential for capturing both financial and nonfinancial data. Signup and view all the answers

What is one common misconception about AISs in relation to business activities?

AISs ignore activities impacting decision-making. Signup and view all the answers

What role do corporate accountants play in regards to AIS?

They develop financial statements and internal reports. Signup and view all the answers

What is a major benefit of subscription-based cloud computing for accountants?

It provides scalable IT capabilities based on current needs. Signup and view all the answers

Why might a professional basketball team's financial reports not capture the hiring of a new player?

It does not result in journaling entries in double-entry accounting. Signup and view all the answers

Study Notes

About the Authors

Mark G. Simkin: Holds an A.B. from Brandeis University, an MBA and Ph.D. from UC Berkeley. Currently a professor at the University of Nevada, with teaching experience across various universities including Hawaii and Japan. Authored over 100 articles in reputable journals.
Jacob M. Rose: Earned B.B.A, M.S., and Ph.D. from Texas A&M University. Director of the Master of Science in Accounting Program at the University of New Hampshire. Former auditor at Deloitte and Touche, recognized as a top instructor in accounting.
Carolyn S. Norman: Acknowledged for her contributions to supplementary materials for the textbook.

Acknowledgments

Gratitude expressed to families, instructors, adopters, and students for feedback and support during the writing process.

Content Overview

The textbook is structured into five parts covering introductory concepts in Accounting Information Systems (AIS), databases, documenting business processes, internal controls, and special topics in AIS.

Introduction to Accounting Information Systems

AIS defined as a collection of data and processing procedures that generates needed information for users.
AIS supports various accounting areas including payroll, accounts payable, budgeting, and more.
Purpose of AIS is to enhance decision-making and streamline business processes across different departments.

Importance of Information vs. Data

Accounting functions as an information system that collects, processes, and distributes financial data to stakeholders.
Modern AISs capture both financial and non-financial information to aid comprehensive organizational analysis.

Recent Changes in Accounting Information Systems

Emergence of cloud computing, providing scalable IT solutions over the Internet, eliminating the need for heavy investments in infrastructure.
Activity-Based Costing (ABC) is gaining traction, allowing for more accurate overhead cost assignments based on specific activities rather than labor metrics.

Corporate Performance Measurement

Corporate Performance Measurement (CPM) systems enable managers to link inefficiencies with specific departments or individuals.
These systems facilitate monitoring and managing organizational performance effectively.

Significant Concepts and Applications

Cloud computing increases IT capacity without the necessity for major upgrades, benefiting accountants through subscription-based services.
ABC has transformed cost management strategies, often leading organizations, like Chrysler, to significant cost savings and production efficiencies by outsourcing costly manufacturing parts.

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Description

Explore the principles of Accounting and Information Systems as outlined by experts in the field. This quiz highlights key concepts and insights from leading professors Mark G. Simkin and Carolyn S. Norman. Test your knowledge and understanding of the material presented in their works.