Francesco Panaccione
Professor Lori Hofer
ACC 340
Homework 1
Review Question 1
A corporate organization pyramid has four levels of activity: executive (top), strategic (upper
management), tactical (middle management), and operational (frontline staff).
Review Question 2
A natural system is a system that happens naturally in the environment, without human
involvement. An artificial system is a system constructed and created by people, typically copying
characteristics of natural systems to serve a certain objective.
Review Question 3
An accounting system's major components include people (staff), processes and instructions, data,
software, information technology infrastructure, and internal controls.
Review Question 6
An AIS focuses specifically on managing financial data within an organization, whereas a MIS is a
broader system that collects and analyses data from various sources, including financial data, to
provide insights for overall business decision-making.
Review Question 9
In an accounting system, good or useful information is relevant, trustworthy, comprehensive,
timely, intelligible, comparative, consistent, and material in nature. These characteristics guarantee
that the information assists in successful decision-making while also being accurate and
meaningful.
Review Question 11
They are attribute (field), record, and file.
Attribute: This is the simplest type of data, representing a single piece of information such as a
client name, invoice date, or transaction amount.
Record: A record is a collection of connected qualities that together comprise a full data entry, such
as a single invoice containing client information, itemized goods, and the total amount.
File: A file is a collection of connected records, such as all client invoices or purchase orders.
Review Question 16
Responsibility: It is the requirement or duty to do prescribed duties and activities. Flows downward
Authority: It is the authority or right granted to individuals to make choices, issue directives, and
distribute resources to achieve organizational goals. Flows downward
Accountability: It is the requirement to report and justify the results of tasks and actions. Flows
upward
Review Question 17
Turnkey Systems are ready to use with little setup and are appropriate for routine tasks.
Backbone Systems are the underlying framework that is tailored to satisfy unique demands and are
commonly employed by bigger businesses.
Vendor-Supported Systems are maintained and upgraded by the vendor, providing continuous
support while decreasing internal IT administration.
Review Question 20
A database administrator (DBA) oversees several activities that ensure the correct operation of a
company's database systems, including:
Security: DBAs create user accounts, permissions, and audits to safeguard critical
information. They also assess security protocols and investigate breaches.
Data management: DBAs guarantee that data is appropriately stored and accessed, as well
as being dependable and error-free.
System administration: DBAs install upgrades and patches and perform regular backups to
prevent data loss.
Database structure: DBAs configure the database structure to match the company's
requirements.
Training and support: DBAs offer training and assistance to users.
Collaboration: DBAs collaborate with developers to design new features and resolve
difficulties.
Predictive analysis: DBAs use consumer data to forecast preferences and behavior,
allowing firms to modify their goods and enhance sales.
Discuss Question 1
External users, including financial institutions, the IRS, the SEC, and shareholders, have rigorous
reporting obligations. Thus, corporations have historically put a high value on the accuracy of the
aims and the reports they create for external bodies, as failing to give correct and timely information
results in severe fines. Internal users, such as managers, also require critical information to make
sound decisions. Firms are realizing that the demands of these internal users are essential to
operating efficiently and successfully and planning forward.
Discuss Question 2
Financial transactions have an impact on the accounts included in the financial statements. Three
instances are: 1) equipment depreciation, 2) payment of a bond payable, and 3) receipt of cash from
a client for a sale already made on account. Nonfinancial transactions refer to business occurrences
that do not affect the financial accounts. Three instances include 1) a student checking out a book
from a school library, 2) filing a consumer complaint via a toll-free hotline, and 3) providing status
reports on research and development initiatives.
Discuss Question 3
Information systems serve three purposes: (1) to support management's stewardship responsibility,
(2) to assist management decision-making, and (3) to support the firm's day-to-day operations.
Managers in all sectors often want data from both the AIS and the MIS. If managers' decision-
making data is spread over many databases, report creation becomes inefficient and costly.
Furthermore, a lack of coordination between the two databases might lead to data that is
inconsistent and unreliable.
Multiple Choice 1
Update valid vendor file
Multiple Choice 2
Human resources system
Multiple Choice 3
Managing and reporting on the status of financial investments
Multiple Choice 4
Efficient and relevant
Multiple Choice 5
Precision
Multiple Choice 6
summarization
Multiple Choice 7
file, record, attribute
Multiple Choice 8
System programmer
Multiple Choice 9
All the above are objectives
Multiple Choice 10
Purchasing, receiving, and storage
Multiple Choice 11
Manufacturing, quality control, and maintenance
Multiple Choice 12
Inventory control, accounts payable, fixed assets, and payroll
Multiple Choice 13
The philosophy and objective of the organization’s management will determine the extent of DDP
in the firm
Multiple Choice 14
The potential for hardware and software incompatibility across the organization is increased
Problem 1
A) I
B) I
C) S
D) T
E) S
F) S
G) S
H) I
I) T
J) S
Problem 4
Salespeople can benefit from AIS information in historical sales data by client and product line,
including gross margin, profit, sales, and sales return. Complaints, delivery time, reasons for
product returns, how to market the product line, sales projections, and so on are all covered by MIS.
Integrating this information would result in an efficient solution, especially as AIS and MIS are
focused on financial and non-financial transactions.