Midterm Ais. | Course Paper

Accounting Information System (BACT3313) CONFIDENTIAL

Midterm Examination

2

SECTION A (100 Marks)

There are FIVE (5) questions in this part. Answer ALL questions in the Answer Booklet.

QUESTION 1

a) Distinguish between Accounting Information System (AIS) and Management Information

System (MIS)

Accounting information system is a system that recognize, gather, communicate

and processing both financial and non-financial data using different relevant technology for

company. Accounting information system will look at the company’s financial activity to

analyse and send the activity information towards obligated employee for them to organize

for the company. For an example, new vendor that will become an effect financially

On the other hand, management information system is a system that involve in all

kinds of company’s operation that collect, analyses and communicate non-financial data.

Management information system will look at the company’s activity to analyse and

conclude what is the most efficient, effectives and relevant for decision making. For an

example, MIS will record customer’s activity complaining about their received product or

service.

(4 marks)

b) Compare and contrast the relative advantages and disadvantages of sequential,

group and mnemonic codes.

First and foremost, sequential code. The advantages are sequential code can display item

in a sequent manner and can be used to record every activity of transaction. Sequential code’s

disadvantages are the arbitrary info and difficult to do change and insertion.

Secondly, group code. The advantage is group code can display complex event that

involve many specific data or code such as code for sale involve the information of what store,

department, the item number and who is the salesman. The disadvantages are arbitrary

information and overused code.

Last but not-least, mnemonic code. The first advantage is alphabet is use for abbreviation,

acronym and many more mix of codes. Next advantage is no need for the user to remember what

the code means as the code is informative and not arbitrary such as MY is Malaysia. The

disadvantage of mnemonic code is very limited in terms of availability and usability

. (8 marks)

Accounting Information System (BACT3313) CONFIDENTIAL

Midterm Examination

c) Discuss the differences between batch processing and real-time processing.

characteristic

Batch processing

Real-time processing

Information time frame

Economic event will affect the

time frame creating lag

Economic event will need

processing

Resource

Not many resources needed

such as hardware, programme,

and training

Many resources needed

Operational efficiency

Some record can only be

process after event to avoid

operational delay

All record on event is

processed instantly

(8 marks)

(Total 20 Marks)

QUESTION 2

A cashier handles all cash receipts from customers. The cashier counts the cash daily prepare the

bank deposit and carries the deposit to the bank every day after work. In addition, the cashier

authorizes all discounts and allowances and decides when uncollectible accounts will be written

off. Finally, because the accounting department is overworked all the time, the cashier is allowed

to post cash payments to customer accounts and reconcile the bank account.