Book Title
Accounting Information Systems 9th Edition

978-1133934400 Chapter 2 Solution Manual Part 1

April 17, 2019
3. The physical component includes the acquisition of goods, while the financial component
8. A general journal is used to record nonrecurring and infrequent transactions. Oftentimes,
general journals are replaced with a journal voucher system. The journal voucher is used to record a
10. A trail that allows the auditor to begin with a summary total found on the financial statements
11. The confirmation process entails selecting customers and contacting them to determine whether
13. Master files correspond to general ledger accounts and subsidiary ledgers. Examples include
accounts receivable and customer subsidiary accounts, accounts payable and vendor subsidiary
accounts, inventory, etc. Transaction files correspond to general and special journals. Examples include
14. The digital audit trail, like the paper trail, allows us to trace transactions from the financial
statement balance back to the actual transaction so we may: (1) compare balances, (2) perform
15. Cardinality reflects normal business rules as well as organizational policy. For instance, the 1:1
cardinality in the first example in Figure 2-16 suggests that each salesperson in the organization is
16. Entity relationship diagrams represent the relationship between entities (resources, events, and
agents) in a system. Dataflow diagrams represent the logical elements (i.e. what is being done) of a
system by illustrating processes, data sources, data flows, and entities. System flowcharts represent the
17. Cardinality refers to the numerical mapping between entity instances, and it is a matter of
18. An entity relationship (ER) diagram is a documentation technique used to represent the
19. Entities are physical resources (automobiles, cash, or inventory), events (ordering inventory,
20. Batch processing occurs when similar transactions are accumulated over time and processed
together. Real-time processing captures each event or transaction and processes it before engaging in
21. A flat-file model is one in which individual data files are not related to other files. End users in
24. A single transaction may affect several different accounts. Some of these accounts, however,
may not need to be updated in real time. In fact, the task of doing so takes time which, when multiplied
26. The system flowchart shows the relationship between two computer programs, the files that
they use, and the outputs that they produce. However, this level of documentation does not provide the
27. a. increased data storage since the same data is stored in multiple files
28. Another problem with the flat-file approach is the users inability to obtain additional
information as his or her needs change. This problem is called task-data dependency. The users
29. Organizations have overcome some of the problems associated with flat files by implementing
the database model to data management. Figure 2-13 illustrates how this approach centralizes the
30. Record layout diagrams are used to reveal the internal structure of the records that constitute a
32. The DBMS is a special software system that permits users to access authorized data only. The
users application program sends requests for data to the DBMS, which validates and authorizes access
33. The flat-file approach is a single-view model. Files are structured, formatted, and arranged to
suit the specific needs of the owner or primary user of the data. Such structuring, however, may
34. Transaction volume is the key factor. Large-scale systems that process high volumes of
transactions often use real-time data collection and batch updating. Master file records that are unique
to a transaction such as customer accounts and individual inventory records can be updated in real time
35. In a real-time processing environment, the master files are updated as soon as the transaction is
submitted and accepted into the system. Thus, reports are more accurate in the sense that the
38. Sequential codes are appropriate for items in either an ascending or descending sequence, such
as the numbering of checks or source documents. An advantage is that during batch processing, any
gaps detected in the sequence is a signal that a transaction may be missing. A disadvantage is that the
codes carry little, if any, information other than the sequence order. Another disadvantage is that
sequential codes are difficult to manage when items need to be added; the sequence needs either to be
reordered or the items must be added to the end of the list. Block codes provide some remedies to
sequential codes by restricting each class to a prespecified range. The first digit typically represents a
class, whereas the following digits are sequential items which may be spaced in intervals in case of