Introduction to Accounting Process

An Accounting Information System collects and processes transaction data and then disseminates the financial information to interested parties. If accounting is the language of business, then an accounting information system (AIS) is the _____ —the information-providing vehicle— of that language.

Accounting is an information system, since an AIS collects, records, stores, and processes accounting and other data to produce _____ for decision makers.

What are some factors that shape accounting information systems, according to the text?

Data are _____ that are collected, recorded, stored, and processed by an information system.

Users make better decisions as the quantity and quality of _____ increase.

Accounting consists of how many basic activities?

What is the systematic arrangement that shows the effect of transactions and other events on a specific element?

Is recording in accounting about keeping a systematic, chronological diary of events measured in non-monetary units?

Is event solely an external cause of changes in assets, liabilities, and equity according to the text?

Is a transaction an internal event involving a transfer or exchange between two or more entities?

Accounting is solely a data identification process and does not involve information development or communication.

Recording in accounting involves keeping a systematic, chronological diary of events measured in non-monetary units.

An event is solely an external cause of changes in assets, liabilities, and equity according to the text.

Data are only collected and processed by an information system, but not recorded or stored.

An AIS collects, records, stores, and processes accounting and other data to produce reports for decision makers.

Accounting information systems collect, record, store, and process data to produce information for decision makers.

Data is the organized and processed form of information in accounting information systems.

Managerial accounting information is generally produced for external information purposes.

The nature of the business, the size of the firm, and the volume of data are factors that shape accounting information systems.

An efficient accounting system only benefits large companies.