Solutions Manual For Accounting Information Systems Controls and Processes 3e Leslie Turner Andrea Weickgenannt Mary Kay Copeland

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Solutions Manual For Accounting Information Systems Controls and Processes 3e Leslie Turner Andrea Weickgenannt Mary Kay Copeland-11.(SO 1) How might the sales and cash collection processes at a Wal-M... art store differ from the sales and cash collection processes at McDonald’s? Wal-Mart sells items that are pre-priced and bar coded with that price. Therefore the cash registers at Wal-Mart use bar code scanners. However, McDonalds sells fast foods that are not bar coded. The cash registers at McDonalds use touch screen systems that require a cashier to indicate the items purchased. The cash collection processes are not different. In both cases, the employee collects the cash or credit card, and returns any change. 12.(SO 1) Can you think of any procedures in place at McDonald’s that are intended to ensure the accuracy of your order? Student responses may vary, however, following are a few examples: Often, at either the drive-through or the inside cash register, the customer can see a screen that displays the items ordered. In addition, a fast food restaurant uses pre-designed slots to hold certain types of menu items. When a customer orders a particular sandwich, the person filling the order knows exactly which slot to pull the sandwich from. Each customer receives a printed receipt with the items listed and the customer can verify the accuracy. 13.(SO 1) How might the sales and cash collection processes at Boeing Co. (maker of commercial passenger jets) differ from the sales and cash collection processes at Chapter 1 Solutions Introduction to AIS Page 1-2 McDonald’s? Boeing does not sell to end-user consumers; rather, it sells to companies such as airlines. Therefore Boeing does not have stores, nor inventory in stores, nor cash registers to process sales. Boeing is more likely to maintain a sales force that visits potential customers to solicit sales. Those sales may be entered by the salesperson into a laptop computer connected to Boeing’s network. McDonald’s, on the other hand, sells to consumers, uses order input touch screens at each location, and maintains supplies of perishable food products. 14.(SO 1) Are there business processes that do not in some way affect accounting records or financial statements? There may be processes that do not directly affect accounting records (such as recruiting and hiring a new employee), but all processes have a direct or indirect affect on accounting records. All processes use resources such as material or employee time. Therefore, all processes have expenses related to those processes that will affect the accounting records. 15.(SO 2) Briefly describe the five components of an accounting information system. 1.Work steps within a business process that capture accounting data as the business process occurs. 2. Manual or computer-based records that capture the accounting data from the business processes. 3. Internal controls within the business process that safeguard assets and ensure accuracy and completeness of the data. 4.Work steps that process, classify, summarize, and consolidate the raw accounting data. 5.Work steps that generate both internal and external reports. 16.(SO 2) Describe how sales data are captured and recorded at a restaurant such as Applebee’s. At most Applebee’s restaurants, a server writes the order on a pad and carries that pad to a cash register. The server enters the order on a touch screen terminal. The order information is then displayed on a terminal in the kitchen. When the customer has finished the meal, the server prints a check and delivers the check to the table. The customer pays the server by using cash or a credit card. The server processes the payment on the touch screen register and returns the change or credit card slip to the customer. 17.(SO 2) What occurs in an accounting information system that classifies accounting transactions? For each business process that affects accounting records, the accounting information system must capture any resulting accounting data, record the data, process it through classification, summarization, and consolidation, and generate appropriate reports. 18.(SO 2) What are the differences between internal reports and external reports generated by the accounting information system? Internal reports are used by management to oversee and direct processes within the organization. External reports are the financial statements used by investors and creditors to make Chapter 1 Solutions Introduction to AIS Page 1-3 decisions about investing or extending credit to the organization. 19.(SO 3) What types of businesses are in the supply chain of an automobile manufacturer? The types of businesses in an automaker’s supply chain are often manufacturers of parts used in cars. This would include manufacturers of tires, batteries, steel, plastic, vinyl and leather, as well as many other manufacturers making the thousands of parts in a car. 20.(SO 3) When a company evaluates a supplier of materials, what kinds of characteristics might be evaluated? The supplier’s characteristics that are likely to be evaluated include price and payment terms, quality, reliability of the materials, as well as whether the supplier can deliver materials when needed. 21.(SO 3) How do you think a company may be able to influence a supplier to meet its business processing requirements? A company may be able to influence a supplier by choosing only suppliers that meet expectations regarding the terms of price, quality, and delivery timing. Those suppliers that do not meet these expectations may not be used in the future. This exerts some influence over suppliers, as the suppliers will lose business if they do not meet the buyer’s requirements. 22.(SO 4) Describe any IT enablement that you have noticed at a large retail store such as Wal-Mart or Target. The most noticeable IT enablement is the use of bar coded systems on the products and how they are read by the cash registers. 23.(SO 4) How do you think the World Wide Web (WWW) has led to business process reengineering at companies such as Lands End or J.Crew? Prior to the World Wide Web, customers placed orders either on the phone or by mail. Both phone and mail orders require employees to take the order and enter it into the computer system. Using online sales, customers enter their own orders and no company personnel are needed to key orders into the computer system. Therefore, there was a major change in the number of people employed to key orders. 24.(SO 4) What two kinds of efficiency improvement result from business process reengineering in conjunction with IT systems? The use of IT systems usually leads to two kinds of efficiency improvements. First, the underlying processes are reengineered (through rethinking and redesign) to be conducted more efficiently. Second, the IT systems improve the efficiency of the underlying processes. 25.(SO 5) Explain the differences between a field, a record, and a file. A field is one set of characters that make up a single data item. For example, last name would be a field in a customer database. A record is a collection of related fields for a single entity. For example, last name, first name, address, phone number, and credit card number fields might make up a single customer record. A file is a collection of similar records. For example, all customer records together make up a customer file [Show More]

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