Accounting Information System Chapter 1 Discussion Questions

The three procedures of accounting and bookkeeping assist an individual in recognising the most effectual use of capital incomes, gauging the properties of the cost controls across their finances. The accrued economic data is collected into usable data facts and reports are summarised for their decision-making procedure. By recognising and gauging costs, individuals can transfer capital to advance productivities and decrease costs.

Q1. The growth of Internet and computer technologies have created new opportunities to better serve the corporations and consumers. Describe 3 new technologies that have changed the ways people communicate or the ways companies conduct their business.

SMW is a wholesaler of specialty micro-brewed beers. SMW purchases bottles and kegs of beer from small microbreweries in the New England area and sells them to local liquor retailers in Boston. SMW’s slogan is “Always in-stock, next day delivery.” Ted Stern, SMW’s owner and CEO, hopes to expand sales to outside of the Boston metro area within one year.

events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

Change should be seen as a challenge and embraced with enthusiasm (Marquis & Huston, 2012). In my professional and personal life, I view and respond to change as a way to make improvements to existing regulations and circumstances. I embark upon the quest with determination to succeed at whatever task is presented to me. Life without change can become unchallenging and stagnant (Marquis & Huston, 2012). As society and technology advance, you must incorporate the necessary transformations that arise with it.

The purpose of accounting is to record the financial information, such as transactions and performance, related to a business. The accounting profession has been in existence for as long as business transactions have occurred. It wasn’t until 1494, however, when Luca Pacioli, a Venetian merchant, wrote Summa de Arithmetica, Geometrio, Proportioni et Proportionalita. His writings described a two-entry system of debits and credits, which became the basis for modern accounting systems. Three centuries later, with the emergence of the Industrial Revolution and the development of corporations, the profession of being an accountant became a necessity to keep track of the rising costs and cash flows. As a result, the American Association of Public

Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on the balance sheet if

The purpose and goal behind researching the income statements and balance sheets then calculating the ratios is mainly to help creditors and investors make their decisions easier and faster. The way we are presenting our research results helps the investors and creditors make the decision which of the companies is more worthy to invest in or loan money too without taking a risk, and lowering the chances that they will be disappointed by the results of their investment, or in the creditors case they can be almost certain the company they are loaning the money to would be worthy enough of paying the money back without a hassle.

uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company 's manufacturing overhead data:

It is critical to understand that the transaction events which give rise to timing differences are economic in nature and therefore have economic consequences. The question then becomes how to best reflect those economic consequences in the financial statements. Inter-period income tax allocation considers the tax consequences of transaction events such as revenue, expenses, gains, and losses and associates these items with the period in which these events are recognized. In other words, inter-period tax allocation is consistent with the basic tenets of accrual accounting. Underlying this method is the understanding that there is a direct economic relationship between identifiable transactions reflected in the financial statements and related income tax effects (Arthur et al., 1984). Therefore, each transaction has a tax effect.

Accounting transactions are professional occasion that has either a positive or negative budgetary impact on the financial statements. One impact of transactions in a financial statement will increase or decrease the accounts contingent on the transaction that has taken place. The history of revenue that has come or gone from the business will be shown on both financial statements and accounting transactions. Many businesses make several transactions daily. Errors can have a negative impact on financial statements, because the facts come from the accounting transactions

Feedback: Management accounting is the preparation and use of accounting information systems to achieve the organization's objectives by supporting decision makers inside the enterprise. LO 4

On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The plant has an

An environment in which change may be the only constant is a challenge to every organisation and manager alike (Hayes, 2007). The need and pressure for change being consistent, it is crucial

Ahmed, A., McAnally, M., Rasmussen, S. & Weaver, C. (2010). How costly is the sarbanes oxley act? Evidence on the effects of the act on corporate profitability. Journal of Corporate Finance, 16, 352-369.