Sia Mashall Ch 1

In: Other Topics

Submitted By fiol
Words 6172
Pages 25
chapter 1

accounting information systems: An overview

Suggested Answers to Discussion Questions

1.1 The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you, or any organization, ever produce information if its expected costs exceeded its benefits? If so, provide some examples. If not, why not? Most organizations produce information only if its value exceeds its cost. However, there are two situations where information may be produced even if its cost exceeds its value. a. It is often difficult to estimate accurately the value of information and the cost of producing it. Therefore, organizations may produce information that they expect will produce benefits in excess of its costs, only to be disappointed after the fact. b. Production of the information may be mandated by either a government agency or a private organization. Examples include the tax reports required by the IRS and disclosure requirements for financial reporting. 1.2 Can the characteristics of useful information listed in Table 1-1 be met simultaneously? Or does achieving one mean sacrificing another? Several of the criteria in Table 1.1 can be met simultaneously. For example, more timely information is also likely to be more relevant. Verifiable information is likely to be more reliable. However, achieving one objective may require sacrificing another. For example, ensuring that information is more complete may reduce its timeliness. Similarly, increased verifiability and reliability may reduce its timeliness. The decision maker must decide which trade-offs are warranted in a given situation.

1.3 You and a few of your classmates decided to become entrepreneurs. You came up with a great idea for a new mobile phone application that you think…...

Similar Documents

Ch.1 Questions

...Question 1-2: What are the three principal forms of business organization? What are the advantages and disadvantages? The three forms of business organizations are proprietorship, partnership, and corporations. The first two forms proprietorship and partnership are very similar based on advantages and disadvantages. Advantages are that it is easily and inexpensively formed, there are very few government regulations and the income is not subject to corporate taxation but taxes on the proprietors or partners incomes. For a corporation there are three main advantages. First a corporation is ever lasting if an owner dies there will be someone to take that persons place. Second the ownership interest is transferred easily because shares are divided equally. Third there are limited liabilities where losses are limited to the actual funds invested. The main disadvantages for the proprietorship and partnership are that the owners can basically lose everything and go bankrupt. That would potentially mean the end of the business. The only saving grace with a partnership is if one partner goes bankrupt the other could potentially make good on the claims. There are two main disadvantages of a corporation the first being that earnings can be subject to double taxation meaning earnings from corporation are taxed and earnings from the shareholders are taxed as well. The second disadvantage is that a corporation is very hard to set up. You need to prepare a charter, write......

Words: 477 - Pages: 2

Consumer Behavior Ch 1

...Chapter 1 questions taken directly from the study guide 1. Distinguish between a need and a want. A need would be the psychological, social or physiological product that the customer needs to survive or has use for. While a want is usually frivolous and the customer does not necessarily have a use for it, it just appears appealing to them at the moment. 2. What is motivation? Motivation is a basic concept in human behaviour. It is literally the driving force in a person that makes them take a particular action, like the reason for purchasing a certain product or paying for a service. 3. What is meant by homeostasis? Homeostasis is considered the psychological equilibrium. It is considered to be the perfect balance or in between area of need satisfaction and deprivation. We all strive for a state of homeostasis, whether it be in our satisfaction with our products and services, or in life. 4. What are marketers commonly accused of? Marketers are often accused of creating a need for a product or a service that would not exist if it were not for the aggressive and repetitive marketing activities that educate, inform and even persuade consumers to buy those products and services. However, it should be looked at from a different point of view. Rather than thought of creating needs, they encourage potential buyers to want or desire the brand by associating it with satisfaction of a need. 5. What do marketing communications convey? ......

Words: 641 - Pages: 3

Ch. 1 & 3

...Chapter 1 and Chapter 3 - Questions and Exercises Chapter 1 (pages 26-27) 1. What are the potential ethical issues faced by Acme Corporation? The potential ethical issues faced by Acme Corporation is giving gifts can lead to dilemmas about whether the gift being given will be perceived as a bribe or simply a gift. If gifts are given, it shouldn’t be given to one person, but instead, an entire team or division. As this could cause other members of the team to feel that there is something more is happening. In this specific case, Frank is giving personal gifts only to Otis, which could cause problems for Frank and/or Acme Corporation in the future. 2. What should Acme do if there is a desire to make ethics a part of its core organizational values? Acme Corporation should make sure that all the rules and guidelines are in writing as well as communicate them to all the personnel as part of its core organizational values. These guidelines should detail items including the giving of gifts to customers as far as a maximum dollar amount or the number of times you are allowed to do it per customer. 3. Identify the ethical issues of which Frank needs to be aware. The ethical issue that Frank needs to be aware of is the fact that, Otis can perceives the gifts he is being given as a bribe. It seemed as Frank was unsure about Otis’ request in Vegas, what will happen if he doesn’t satisfy this request? It’s good to go with your initial feeling and if needed, say no in a......

Words: 680 - Pages: 3

Ch 1 Mgmt 3200

...Chapter 1—Effective and Ethical Communication at Work MULTIPLE CHOICE 1. Communication skills are |a. |not as important in technical fields. | |b. |critical to effective job placement, performance, career advancement, and organizational success. | |c. |required only for high-level positions. | |d. |not as important in a down economy. | ANS: B | |Feedback | |A |Communication skills are needed in both technical and nontechnical fields. | |B |Surveys of employers consistently show that communication skills are critical to effective job placement, performance,| | |career advancement, and organizational success. | |C |Communication skills are needed at all levels of employment. | |D |Communication skills are especially valuable in a gloomy economy in which hordes of job seekers vie for limited | | |openings. ...

Words: 15307 - Pages: 62

Ch 1 and 2 Notes

...------------------------------------------------- Ch 1 Introduction 1.1 Why Learn Statistics? * Statistics is the branch of mathematics that transforms numbers into useful information for decision makers. Statistics lets you know about the risks associated with making a business decision and allows you to understand and reduce the variation in the decision-making process. * Statistics provides you with methods for making better sense of the numbers used every day to describe or analyze the world we live in. * Statistical methods help you understand the information contained in “the numbers” and determine whether differences in “the numbers are meaningful or just due to chance. * Why learn statistics? First and foremost, statistics helps you make better sense of the world. Second, statistics helps you make better business decisions. 1.2 Statistics in Business * In the business world, statistics has these important specific uses: 1. To summarize business data 2. To draw conclusions from those data 3. To make reliable forecasts about business activities 4. To improve business processes * The statistical methods you use for these tasks come from one of the two branches of statistics: descriptive statistics and inferential statistics. * Descriptive statistics are the methods that help collect, summarize, present, and analyze a set of data. * Inferential statistics are the methods......

Words: 1278 - Pages: 6

Case Study Ch 1

...available. Many employees have now joined the company following applications made online. As a result of visits from all these different types of site customer, the Orange site now receives 12,000 visitors each week. So that it can keep customers informed without them having to remember to access the web site, Orange has registered 20,000 people whom it keeps informed through regular e-mail bulletins. The web site is today used as just one element of new media activity. To drive visitors two additional sites have been created such as that for the Orange Prize for Fiction. Source: Adapted from Shardlow N (1999) Web blossoms for Orange, Computing, 14 January. Reproduced with permission of VNU Business Publications Ltd. Questions 1. Why was the site not initially developed for a wide audience? 2. Reading the extract above and through visiting the site, identify tools on the site that give users a service not readily available from other media. 3. Produce a table of the different types of customer the web site receives and the types of information and services oriented to these users. 4. What are the main benefits of registering at the site (for both Orange and its customers)?...

Words: 549 - Pages: 3

Systen Design Ch 1

...requirements modeling techniques and team-based methods that systems analysts use to visualize and document new systems. The chap· ter then discusses system requirements and fact· finding techniques, which include interviewing, documentation review, observation, surveys and questionnaires, sampling, and research. If you have MIS CourseMate, you can view a Video Learning Session that explains how you can use a functional decomposition diagram (FDD) to model business functions and processes. Cql~Ti~ 20U C<~ ~ All Ri~ Jt~\'fd, Ml~· WI bee~ 0(&111(<,1. ~ d11p~. in wholo Ill' i3 fWl.-~ w tl~nx :i,Vr.s. Wtt(' tir.l pv!)> OC'!II«II m.or be Wll'fU1«1 £rvm e:,e elk-o.lk ~ t01r('4«(t.), &lic.,rial nvkw hMo ok(tll(l.llh;,t ·n~· w~ IX'!II«<C Otoe$ n\1'1 .-n,.n~· llt'!«ttllt q.-util l~"ttin& e•pcno:!>,Jf, (:(Oft(: L<-=c re.e...,~ the :i~ 10 ~~ l!<.kliD(IO'I.-1 OC'!II«<C ll WI)' d~«~ -1 $11bo(qunr; n,;;. fO!riW«~, m;uiro ._ I 97812851713·~0_CH:>4.1ndd 130 29/11112 9:52AM I Introduction I 3 I PREVIEW CASE: Mountain View College Bookstore Background: Wendy Lee, manager of college services at Mountain View College, wants a new information system that will improve efficiency and customer service at the three college bookstores. In this part of the case, Tina Allen (systems analyst) and David Conroe (student intern) are talking about requirements modeling tasks and concepts. Participant s: Tina and David Location: Tina's office,......

Words: 25607 - Pages: 103

Ch.1 Outline

...Ch.1 [FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS] I. Essential characteristics of accounting are: a. The identification, measurement, and communication of financial information i. Financial statements b. Economic entities ii. Financial information c. Interested parties II. What is the purpose of information presented in notes to the financial statements? d. To provide disclosure required by GAAP III. Capital Allocation e. Financial reporting iii. Financial information a company provides to help users with capitol allocation decisions about the company f. Users iv. Investors and creditors use financial reports to make their capital allocation decisions v. Audience- are reasonably well-informed users g. Capital allocation vi. The process of determining how and at what cost money is allocated among competing interest vii. Interested in investors’ money to make good capital allocated decisions. h. An effective process of capital allocation is critical to a healthy economy, which… viii. Promotes productivity ix. Encourages innovation x. Provides an efficient and liquid market for buying and selling securities IV. Objective of accounting i. General purpose Financial statements xi. Provide the most useful information possible at the least cost 1. Equity investors are the......

Words: 795 - Pages: 4

Journals Ch. 1-4

...Journals Ch. 1-4 Chapter 1 Pg. 8 Would you describe yourself as a multiracial, or do you see yourself as belonging to a single race? Why? I consider myself multiracial. I come from a Hispanic culture but after living in Miami for so many years, and being surrounded by such a cultural landscape I have also adopted into the American culture. I am also white. Pg. 12 Have you or any member of your family ever encountered a glass ceiling? Explain. Luckily no one in my family has encountered a glass ceiling; they all work for diverse and accepting companies. Pg. 14 As you read the following scenarios that represent a range of reaction (Cultural Cruise Control, Beginning Adjustments, and Fine tuning), with whom do you most identify? Why? I identify the most with fine-tuning. Miami is an extremely diverse city and after living here for so many years, I have learned to respect and appreciate all the diversity that surrounds me, to the point that I am very comfortable with it. Pg. 16 Describe a life experience in which you were in cultural cruise control. Then describe another experience in which you were engaged in beginning adjustments or fine-tuning. Compare these two experiences. One time I was on the way to Orlando with my family, my dad was driving and we got pulled over by a cop. The cop approached our car casually, the moment he started talking to my dad and realized I was translating for him, his approached changed completely! He started being rude and...

Words: 2479 - Pages: 10

Econ Ch.1

...Chapter 01 Limits, Alternatives, and Choice Multiple Choice [QUESTION] 1. Economics is a social science that studies how individuals, institutions, and society may: A) Expand the amount of productive resources available to them B) Attain a minimum level of unemployment C) Best use scarce resources to achieve the maximum satisfaction of economic wants D) Reduce the prices of goods and services to consumers Answer: C Topic: The Economic Perspective Difficulty: 2 Medium Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 2. The key economic concept that serves as the basis for the study of economics is: A) Inflation B) Unemployment C) Money D) Scarcity Answer: D Topic: The Economic Perspective Difficulty: 2 Medium Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 3. A recurring theme in economics is that people: A) Have unlimited resources, but limited economic wants B) Can increase resources by limiting their economic wants C) Have limited economic wants and limited resources D) Have unlimited economic wants, but limited resources Answer: D Topic: The Economic Perspective Difficulty: 1 Easy Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 4. As a consequence of the problem of scarcity: A) There is never enough of anything B) Individuals have to make choices from among alternatives C) Production has to be planned by government D) Things......

Words: 727 - Pages: 3

Linux Ch 1

...1. What is free software? List three characteristics of free software. Free software is software that users can change and distribute without any repercussions. The characteristics of free software is that the software can be used for any purpose, can be studied and changed and can be distributed with the changes made. 3. What are multiuser systems? Why are they successful? Multiuser systems allows many people to use all of the resources of the system at the same time. This makes the system successful because the resources available can be used to its utmost potential so its growth is always on the rise. 5. In which language is Linux written? What does the language have to do with the success of Linux? Linux is written in C which means that that it is portable. In this way it makes it successful for it can be adapted to different machines and allows it to complete tasks on almost any platform. 9. What is a shell? How does it work with the kernel? With the user? A shell is a command interpreter which is the link between you and the operating system. Shells can arrange a file for later execution using scripts which help with operations and keep kernels on a priority list. This also makes it so users can issue short commands that perform highly complex operations. 11. Why is the Linux filesystem referred to as hierarchical? The filesystem of Linux is hierarchical due to its structure of arranging files under directories. These directories can hold other......

Words: 388 - Pages: 2

Ch. 1 Review Question

...Ch. 1 Review Questions 1. Redundancy is the duplication of data or storing of the same data in more than one place. Redundancy wastes space and can lead to inconsistencies in information. 2. Nondatabases are time consuming and have a definitive amount of entries that can be made. 3. Entity is a person, place, object, event, or idea in which you want to store data; attribute is a characteristic or property of an entity. 4. Relationship is an association between entities. One to many relationships is when one entity associates with many other entities but many entities associate with just one. 5. Database is a structure that can store information about multiple types of entities the attributes of those entities, and the relationship between the entities. 6. Using common columns in the two tables creates it. 7. Visual way to represent a database. 8. Program, collection of programs through which users interacts with a database. 9. Determine the structure of the required database. 10. Screen objects used to maintain, view, and print data from a database. 11. The DBMS ask questions about desired content and appearance of each report and then creates the report automatically based on the answer. 12. Data of various users can be combined and shared among authorized users, allowing all users to access greater pool of data. 13. A person or group to be in charge of the database. 14. With the database approach, changing a......

Words: 426 - Pages: 2

Bsad Ch 1

...CH 1: Supplementary exercises 2, 3, 7, 8, 13, 14, 19, 20, 25 (pgs 25-32). 2. a. There are 10 elements in this data set. b. There are 5 variables in this data set. c. Categorical Variables = Operating system and CPU manufacturer Quantitative variables = Cost ($), Display size (inches) and Battery life (hours). d. Variable Type of measurement Operating system Nominal CPU Manufacturer Nominal Cost Interval Scale Display Interval Scale Battery Interval Scale 3. a. Average cost = (599+299+499+860+668+899+530+590+525+360) / 10 = 5829/10 = $ 582.9 b. Average cost of tablets with windows operating system, = (599+860+668+899+590)/5 = 3616/5 =$723.20 Average cost of tablets with Android operating system, = (299+530+525+360) /4 = $428.50 So, the cost of a tablet with windows is about 1.7 times more expensive than an Android. c. Percentage of tablets using CPU manufactured by TI OMAP = (2/10)*100 = 20% d. Percentage of tablets using Android operating system = (4/10)*100 = 40% 7. a. The data collected by Kroger in this example are Categorical. b. Nominal measurement scale has been used. 8. a. The sample size for this poll is 762. b. The data are categorical. c. It make more sense to use percentage in this kind of survey. d. Number of individual saying Yes = 67% of 762 = 511 13. a. The variable of interest is federal spending. b. The data are quantitative. c. The data are time series. ...

Words: 545 - Pages: 3

Ch 1 Questions

...Accounting Information Systems, 12e (Romney/Steinbart) Chapter 1 Accounting Information Systems: An Overview 1) Which of the following statements below shows the contrast between data and information? A) Data is the output of an AIS. B) Information is the primary output of an AIS. C) Data is more useful in decision-making than information. D) Data and information are the same. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 2) Information is A) basically the same as data. B) raw facts about transactions. C) potentially useful facts when processed in a timely manner. D) data that has been organized and processed so that it's meaningful. Answer: D Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 3) The value of information can best be defined as A) how useful it is to decision makers. B) the benefits produced by possessing and using the information minus the cost of producing it. C) how relevant it is. D) the extent to which it maximizes the value chain. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Moderate AACSB: Analytic 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A Page Ref: 10 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 5) Information that reduces......

Words: 6299 - Pages: 26

Ch. 1 Solutions Fi504

...CHAPTER 1 Introduction to Financial Statements ANSWERS TO QUESTIONS  1. The three basic forms of business organizations are (1) sole proprietorship, (2) partnership, and (3) corporation.  2. Advantages of a corporation are limited liability (stockholders not being personally liable for corporate debts), easy transferability of ownership, and easier to raise funds. Disadvantages of a corporation are increased taxation and government regulations.  3. Proprietorships and partnerships receive favorable tax treatment compared to corporations and are easier to form than corporations. They are also owner controlled. Disadvantages of proprietorships and partnerships are unlimited liability (proprietors/partners are personally liable for all debts) and difficulty in obtaining financing compared to corporations.  4. Yes. A person cannot earn a living, spend money, buy on credit, make an investment, or pay taxes without receiving, using, or dispensing financial information. Accounting provides financial information to interested users through the preparation and distribution of financial statements.  5. Internal users are managers who plan, organize, and run a business. To assist management, accounting provides timely internal reports. Examples include financial comparisons of operating alternatives, projections of income from new sales campaigns, forecasts of cash needs for the next year, and financial statements.  6. External users are those outside the......

Words: 3539 - Pages: 15

StunBangz | مسلسل روز باريس | Série Animée VF