SM 4.1
Chapter 4
INFORMATION TECHNOLOGY AND AISs
Discussion Questions
4-1. An AIS is best viewed as a set of interacting components that must all work together
people and procedures to maintain them, gather them, run them, and use them properly.
4-2. An understanding of information technology (IT) is important to accountants for
many reasons. Some examples:
capabilities, and limitations.
b) Accountants often help clients make hardware and software decisions. A knowledge of
IT concepts is critical to these efforts.
enables the accountant to participate more intelligently in such committees.
e) Accountants are often asked to assist in the design of new computerized accounting
work.
f) Most accounting systems require controls to assure the accuracy, timeliness, and
completeness of the information generated by such systems. An understanding of how
automated accounting environment.
g) Those accountants who understand how to use computer hardware and software will have
the easiest time in performing such tasks as auditing, budgeting, database use, and so
these activities is therefore essential to the accountants that help perform these activities.
4-3. Data transcription refers to the transformation of data from source documents into
machine-readable “computerized” input. Data transcription is unnecessary in manual accounting
source documents.
SM 4.2
or “bottle-neck” operations. Designers of effective accounting information systems are willing
to incur such costs because the benefits of the computerized processing from these systems make
4-4. Computer input equipment includes computer keyboards, computer mice, bar code
and computer tablets. The chapter describes the functioning of each device in detail.
4-5. This question asks students to voice their personal opinions about red-light cameras—
the ones that automatically issue traffic tickets when drivers run red lights. This question should
eliminate them entirely.
industry advocacy organization, red-light camera contracts in the US has grown from 155 in
2005 to 689 in 2012.
4-6. The three components of the central processing unit are: (1) primary memory, (2)
arithmetic/logic unit, and (3) control unit. As its name suggests, the primary memory of the CPU
central processing units act as an overseer of operations, interpreting program instructions and
supervising their execution.
speed of the processor drastically exceeds the speeds for input and output operations. Most
computers are I/O bound, meaning that their CPUs mostly wait for data to be input or output.
SM 4.3
4-7. The three types of printers mentioned in the text are dot-matrix printers, inkjet
printers, and laser printers.
Dot-matrix printers
make “carbon copies”)
b) Disadvantages: (1) slow print speeds, (2) low print resolutions
Ink-Jet Printers
b) Disadvantages: (1) lower speeds (compared to laser printers), (2) can print single copies
only (not carbon copies), and (3) ink cartridges are comparatively expensive
Laser Printers
perform faxing, copying, and scanning functions
b) Disadvantages: (1) comparatively higher costs for both printers and toner cartridges, and
(2) can print single copies only
4-8. Secondary storage devices provide a permanent, non-volatile medium for storing and
retrieving accounting data. Examples include permanent hard disks, removable disks such as zip
and USB devices are removable and therefore useful for backup, mailing, and distribution tasks.
These media and their relative advantages and disadvantages are described at length in the
chapter.
4-9. Image processing refers to storing graphic images in computer files (usually of
business documents) and manipulating them electronically. Examples of image processing
deeds, wills and other legal documents). Four advantages of image processing that are important
to AISs are: (1) fast data capture, (2) archiving efficiency (the ability to store hundreds of
SM 4.4
4-10. Data communications protocols are the standards by which computer devices
communicate with one another. Examples of such standards include the packet size and format,
if the parity bit for a character were different than the parity bit at the time it was transmitted, the
character would either be different or unreadable. This enables communication devices to detect
between $1 and $1 billion is one bit.
4-11. Local Area Networks (LANs) are collections of computers, file servers, printers, and
between LAN members and the Internet, (2) sharing computer equipment, (3) sharing computer
equipment to communicate with one another.
4-12. Client/server computing is an alternate to mainframe/host computing. In centralized
computing systems, the mainframe computer or minicomputer performs most, if not all, of the
Client/server systems offer several advantages. These include the ability to: (1) substitute the
inexpensive processing capabilities of microcomputer hardware and software for comparatively
difficulty when changing application software from one package to another, and (5) a potential
need for greater user training. The security and auditability of client server systems are usually
also more complex.
4-13. These days, almost any vendor that offers remote computer services could be
classified as a cloud computing vendor. This includes those companies that perform basic
always cheaper, faster, or better. Moreover, the quality of a vendor’s work is not automatically
guaranteed simply because it provides online services, and “security” is also a concern because
SM 4.5
4-14. Windowing operating systems such as Windows Vista, Windows 7, and Windows 8
are operating systems that use graphical user interfaces (GUIs) with menus, icons, and other
Multitasking capabilities enable operating systems to perform more than one task on a single-
multitasking operating systems are also important to AISs because so many other microcomputer
accounting programs require them. For example, Peachtree, Solomon, Great Plains, Excel,
4-15. Four classes of application software are: (1) personal productivity software, (2)
commercial productivity software, (3) accounting software, and (4) communications software.
planning (ERP) software.
Personal productivity software enables users to create and manipulate word documents (word
software), design consumer or industrial products (CAD software), control manufacturing
processes (CAM software), or create presentations (presentation graphics software).
from distant computers, and access the Internet and World Wide Web. Finally, ERP software
enables businesses to transmit, manipulate, and integrate financial data on a corporate wide basis.
4-16. Computer programmers create the capabilities of each and every computer
application by writing computer instructions in a programming language that a computer can
SM 4.6
good for creating simple reports from existing databases and is widely supported by IBM on
interactive windows programs with easily-manipulated, event-driven programming tools.
4-17. This question asks students whether or not copying software is ok if it is for personal
developers charge too much for their products.
Problems
4-18. Classifying equipment:
Item: Classification:
4-19. Defining acronyms:
Item: Meaning:
SM 4.7
4-20.
a) one DVD disk capacity = 17 gigabytes
Conclusion: Choice (b) holds the most data.
4-22. Brian Fry Products
character positions field
SM 4.8
4-23. Go the AICPA website and identify the top ten information technologies for the
items change from year to year.
4-24. An RFID system for a state’s toll roads.
Debit
Credit
Account Title
Amount
Amount
a.
Cash
20.00
20.00
b.
Cash
100.00
100.00
c.
Transponder Deposits
900.00
900.00
d.
Transponder Deposits
25.75
25.75
e.
Owner’s Equity
10.00
10.00
4-25. This problem requires students to select a type of computer hardware of interest and
can embed pictures in spreadsheets.
4-26. This problem requires students to visit the Dell Corporation’s website at
purchased from another vendor might be cheaper.
4-27. This problem requires students to visit the Accounting Technology website at
page summary of it.
4-28. Examples of productivity software include (1) spreadsheet software, (2) email
software, (3) word-processing software, (4) database software, (5) presentation software, (6)
web pages might also be considered productivity software. The accounting applications of this
software should be self-evident.