QUESTION 2 Ravinash Limited is a manufacturing company going through significant growth. It has limited operational systems for sales, purchasing and payroll and an old in-house accounting system that cannot be developed. The company board believes that an accounting information system will help it compete more effectively but it is not familiar with the types of software involved. It has approached you for the following pieces of advice. Required (a) What is an accounting information system and explain how it might be different from a management information system (b) Outline and evaluate the key purposes of an accounting information system. (c) To what extent should the accounting information system be at the core of the

QUESTION 2 Ravinash Limited is a manufacturing company going through significant growth. It has limited operational systems for sales, purchasing and payroll and an old in-house accounting system that cannot be developed. The company board believes that an accounting information system will help it compete more effectively but it is not familiar with the types of software involved. It has approached you for the following pieces of advice. Required (a) What is an accounting information system and explain how it might be different from a management information system (b) Outline and evaluate the key purposes of an accounting information system. (c) To what extent should the accounting information system be at the core of the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter1: The Demand For And Supply Of Financial Accounting Information

Section: Chapter Questions

Problem 14C: Codification Situation You are conducting an accounting research project for your boss. Your boss...

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1. A company's accounting information system (AIS) plays an important role in the conversion cycle. Do you agree that the design of a company's conversion cycle AIS should go beyond merely meeting external financial reporting requirements? Do you agree that accountants should only focus on preparing for financial statements and leave the design of the AIS to information systems specialists? Please explain in no more than 300 words.
CASE:Outsourcing Accounting FunctionsYou have been employed for two years in the accounting department of a mid-sized multinational consumer products company. Your performance has been outstanding, and it is clear that management feels you have great potential with the firm. However, you are quite surprised when your manager calls you into her office to tell you that you have been chosen to lead an effort to identify an outsourcing partner for the payroll, accounts payable, and accounts receivable functions. She assures you that there will be an excellent assignment for you after the outsourcing is successfullycompleted and all is functioning well in one to two years. Questions: 1.What benefits might your organization gain from outsourcing basic accounting functions? 2. .Identify at least three major organizational challenges associated with transitioning these functions to an outsourcing firm.
1. Which of the following statements is false? a.Subsidiary ledgers and special journals are only useful when a business doesn't have a large number of similar transactions. b.Even small companies use computerized accounting systems. c.Large companies often integrate their accounting system with their automated business systems. d.Most computerized accounting systems use principles from manual systems.
Indicate whether each of the following statements is true or false. 1. When designing an accounting system, you need to think about the needs and knowledge of both the top managers and various other users. TrueFalse 2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money. TrueFalse 3. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it. TrueFalse
Accountants play an important role within an organization. Without the proper tools and resources, they would not be as efficient or effective in their jobs. Discuss the value that an AIS system brings to an organization. In what ways do accounting information systems enable companies to not only become more productive but also provide the ability to compete with others on a global scale?\\nProvide 2-3 ways in which you have experienced the value of AIS from a professional or personal level.
Answer True or False1. A strategic audit is done to evaluate the functional unit of the business and grades itaccording to its business alignment goals.2. Strategic Audit evaluates your current strategy by performing a Financial analysis testwhich reassesses the business strength and weakness and threats.3. A strategic audit helps assess the resources of a company whereby if your goals do notmatch with your current resources, one has to change either the business goals or eitherstretch out on the supplies available4. It is not important to perform regular strategic audits and measure implementation inorder to keep on top of shifts in the environment and ensure you are always on the rightpath.5. The most important requirement for the data used in the strategic review process is thatthey be objective. In addition, the criteria should be familiar, well-understood, andaccepted measures of financial performance6. Political variables have a significant effect on Strategy formulation and…
Not a writing assignment! Just seeking understanding Island Solutions is a technology business that retails and wholesales computer hardware along with awide variety of technology products and solution services. Recently, several competitors have enteredthe market and introduced new products that might drive some of the business’ inventory intoobsolescence. The company has always been IRFS compliant and wants to ensure that it follows theappropriate authoritative literature in determining the accounting for some significant market changes.The accountant at Island Solutions has tasked two small teams of interns to conduct several pieces of research and dry-run practices. A) Under IFRS, what inventory accounting method(s) / cost flow assumption(s) is/are IslandSolutions allowed to use and prohibited from using? B) What is the purpose of the current ratio? Assume that Island Solutions want to compute itscurrent ratio, which inventory method (FIFO or Average Cost) would give a…
Question 1Accounting information users need reports about the economic activities and condition of businesses.TrueFalseQuestion 2Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management.TrueFalseQuestion 3Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.TrueFalseQuestion 4Managerial accounting is primarily concerned with the recording and reporting of economic data and activities of an entity for use by owners, creditors, governmental agencies, and the public.TrueFalseQuestion 5The financial statements of a proprietorship should include the owner's personal assets and liabilities.TrueFalseQuestion 6Drawings are an example of an expense.TrueFalseQuestion 7The double-entry accounting system records each transaction twice.TrueFalseQuestion 8The increase side of all accounts is the normal…
(1) What are some key differences between financial and managerial accounting? (b) Is it permissible to violate generally accepted accounting principles (GAAP) when preparing reports used strictly by company management? If so, why? (c) Please discuss two of the five basic phases of the “management process” discussed in Chapter 18. (d) The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with a debit or credit card. Previously, the restaurant has accepted only cash. What information could the management accounting department supply to assist management with this decision?
You were not totally satisfied with the vertical analysis, so you now want torun a horizontal analysis of this company. Complete Table 4–6. Perform a horizontal analysis on these accounts. Compare the changes in accounts, anddescribe the changes that were beneficial or detrimental to this company inone sentence.
3. Wishaw plc is a large advertising agency. It has been approached by Crime plc, which wants to undertake all copywriting and design activities for Wishaw plc. This would involve making a large number of Wishaw’s plc staff redundant, but it would greatly. On which of Wishaw pie's functions would acceptance of Crimble pic's offer have the greatest effect? The operations function B The marketing function The finance function The IT function 4. The tasks of the Finance function are increasingly affected by technological developments. Which of the following finance function tasks is most affected by technological developments in process automation? A Management accounting B Transaction recording Treasury management D Financial reporting