Accounting Information Systems
Solutions
Accounting Information Systems
Many business events are recorded in the GL from feeder processes. The first list below identifies eight business events. The second list specifies five feeder processes. Match the events with the processes. Each process may have one or more event specified. Some events may not be used.
Business Events
- A. Sales order is received from a customer.
- B. Inventory is sold to a customer.
- C. Inventory is received from a vendor.
- D. Inventory is returned from a customer.
- E. Cash is disbursed for inventory purchased.
- F. Bad debts are written off.
- G. Employer taxes are accrued.
- H. Cash is received from a sale.
- I. Employer taxes are deposited.
Feeder Processes
___ 1. B/AR/CR process
___ 2. Purchasing process
___ 3. OE/S process
___ 4. AP/CD process
___ 5. Payroll process
To match: The feeder process with the business events.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
The feeder process with the business events:
1.
Correct answer: (D, F, H)
- Inventory is returned from a customer.
- Bad debts are written off.
- Cash is received from a sale.
The B/AR/CR process handles all the inventory, bad debts and cash process in the accounting information system. The cash receipts, clearing bad debts are essential for the balancing of a accounts statement.
2.
Correct answer: (C)
Inventory is received from a vendor.
It comes under the purchasing process as the inventory needed for the production process is acquired from a vendor outside the organization.
3.
Correct answer: (B)
Inventory is sold to a customer.
The inventory is sold to a customer...
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