Research

Philippine Christian University

College of Business Administration and Accountancy

Accounting Information Systems

HOMEWORK #1

1st Semester, Academic Year 2015 – 2016

General Instructions: For essay questions, a maximum of five sentences would suffice.

1. Reading review questions:

a.

What is an accounting information system?

b.

Describe the purpose of the Conceptual Framework. Discuss how it relates to

your study of accounting information systems.

c.

List and discuss the four parts of a generic accounting information system.

d.

Compare and contrast sponsored information, practitioner / public information

and scholarly information.

e.

Identify five broad criteria you can use to evaluate information on the Internet and

in other sources.

f.

What are the essential elements of an accounting information system?

g.

In what ways would the use of computers increase the cost of operating an AIS?

In what ways would computers decrease the cost?

h.

How do the elements interact to provide accounting information to internal and

external decision makers?

2. Making choices and exercising judgment:

a.

Mind Reader Company is a small consulting service based just outside Manila. It

has two partners, Professor X and Jean Grey, and average monthly sales revenue

of ₱25,000. At any one time, the partners have up to three consulting

engagements running simultaneously. Monthly expenses include office rent,

supplies, utilities, professional magazine subscriptions and automobile expenses.

What form(s) of information technology, if any, should the partners use in their

accounting information system? Explain the costs and benefits of your

recommendation.

b.

Most accounting information systems in use today employ principles of debit and

credit for recording transactions. What are the costs and benefits of using the

debit / credit system for transaction recording? If the system is destined to fade

into disuse, what do...