Chapter one : Systems Concepts and Accounting
Q1: What is the definition of system ?
»» A system is a set of parts coordinated to accomplish a set of goals.
Q2: How does a supersystems differ subsystems ?
»» The system and the supersystem consist of parts, this parts may themselves constitute different system each having all of system, characteristics and called subsystem, and it’s goals are different from those of the higher level systems.
Q3: How does a system boundary differ from a system interface ?
»» The boundary separate the system from the other system in the environment. The interface is a link with the other systems in the environment.
Q4: Which four systems are recognized by system theory ?
»» Systems theory are recognized four basic types of system : -
1- Closed systems : is totally isolated from its environment. There are no external interfaces. The system has no effects outside of its boundaries, and the environment has no effects on the processes within the system.
2- Relatively closed systems : reacts with its environment in a know and controlled ways. The system contains interfaces with the environment, and it controls the effects of the environment on its process.
3- Open systems : the interaction with the environment is not controlled, and has uncontrolled inputs that affect the processes within the system.
4- Feedback control systems : in this system a portion of system output is returned as an input to the system, to help it attain its goals.
Q5: What are the input to an accounting information system ? the processes ? the output ?
»» - The input to an accounting information system are the economic events that become accounting transaction.
- The processes in an accounting information system, record an economic events as a transaction journalize and post, and summarize transactions and in various reports.
- The outputs are accounting documents and reports.
Q6: What are the subsystems of accounting systems ?
»» The accounting system has component parts that are themselves systems. The accounting system composed of application systems. An application system is a set procedures and computer programs that perform a specific accounting objective. The accounting system is a supersystem consisting of responsibility accounting system, and a transaction processing system.
Q7: What are the main transaction in an industrial organization ?
»» Most auditors identify the following four transaction cycles:
1- Revenue cycle: accounting transactions resulting from economic events that produce revenue for the accounting entity.
2- Expenditure cycle: accounting transaction caused by the economic events necessary to supplies for accounting entity.
3- Conversion cycle: accounting transaction recorded when converting purchased inventory into salable finished products.
4- Financial cycle: accounting transactions that record the acquisition of capital from owners and creditors, and the use of that capital to acquire properly necessary for generating income.
Q8: What is the decoupling in the accounting system ?
»» Decoupling is often provided by the files in an accounting system. Decoupling allows individual application systems to operate independently. So that an output of one system does not immediately become an input to another system.
Q9: What are the three components of an accounting information system ?
»» The three components of an accounting information systems are :
1- the transactions processing system. It provides information used by clerical and managerial personnel.
2- The budgeting system. Allows top to communicate corporate objectives to all in the organization.
3- The responsibility reporting system summarizes historical data on a periodic basis and provides the bottom up information flows.
Q10: When we can use decision support system ?
»» Decision support systems are most useful at the higher levels as the strategic level decisions are unstructured and decision styles may differ significantly among managers.
Q11: What are the steps in the systems approach to problems solving ?
»» 1- Identify the problem : evidenced by a decision making situation.
2- Define the objective : develop a clear understanding.
3- Explore alternative solutions : identify both quantitative and qualitative costs and benefits.
4- Taka a broad view point : examine the system as a whole rather than is subsystems.
5- obtain varied perspectives : using a project team encourages creative solution.
Chapter two
Accounting Information Systems and the Accountant
Q1: What are the accounting information system ?
»» An accounting information system is a special type of information system that provides information about business processes and events affecting on organization.
Q2: What are the implications of the information age for accounting ?
»» The information age has implications for accounting, accounting have always been in the information business for there role is to communicate accurate and relevant information to parties interested in knowing how organizations are performing.
Q3: What are the major components of information system ?
Q4: Define Accounting information system ?
»» An accounting information system (AIS) is the information subsystem within an organization that accumulates information from the entity’s various subsystems and communicates it to the organization’s information processing subsystem.
Q5: What is the impact of information technology (IT) on financial accounting?
»» The financial accounting have been criticized for failing to produce accounting information that is timely and useful. But the information technology have many software programs today can capture both financial and non financial date and organize it in a ways that are meaningful to both external and internal information users in real time.
Q6: What are the parts of managerial accounting ?
»» Managerial accounting ( principally provides information to internal parties ):
Q7: What is the impact of information technology on cost accounting ?
»» Information technology helps cost accountants by allowing them to track costs more carefully and by enabling them to trace specific costs to specific activities. An example of information technology’s impact on cost accounting is the emergence of activity based cost system.
Q8: What are the important features of managerial accounting ?
»» - Managerial accounting focuses on providing accounting information for internal parties.
- Managerial accounting information is mostly forward looking.
- Managerial accounting information is not regulated by generally accepted accounting principles.
- Management accounting reports include both non monetary and financial date.
- Managerial accounting is influenced by many business and non business disciplines.
Q9: What is the impact of information technology on performance measurements ?
»» Many organizations use a responsibility accounting system to help managers trace unfavorable performance to the department or individual that caused the inefficiencies, responsibility accounting systems are part of an organizations total performance measurement system. Performance measurement is yet another area of accounting impacted by information technology. Decision makers are beginning to use new types of performance measurement to accompany such traditional financial measurement as net income, return on investment, and earnings per share.
Q10: What are the impact of information technology on budgeting ?
»» A budget is a financial projections for the future. The budgetary function within accounting information system affects all the subsystems within an organization and require good communication among them, and the information technology allows accountants and managers to prepare budgets under a variety of assumptions and to evaluate the impact on performance when assumptions change.
Q11: How do the company perform system study ?
»» A company have a problem with its current information system ( reports are not timely ). Many business consulting firms use team approach when performing a systems study :-
- Planning : develop strategic plans.
- Analysis : review current system.
- Design : design new system.
- Implementation and follow up : put the new system in place and continue to monitor it.
Chapter three
Transaction Processing Fundamentals And Major Processing Cycle
Q1: What are the main characteristics of good output repots ?
»» Good out put reports share similar characteristics regardless of there type:
1- Usefulness : in order for a report to be useful, it must serve some managerial purpose.
2- Convenience of formal : convenient formats vary on a case by case basis.
3- Ease of identification : good managerial reports always contain fundamental identification including headings and page numbers.
4- Consistency : consistency allows managers to compare information from one period with that of another.
Q2: How do source document help manage the flow of accounting data ?
»» Source documents help manage the flow of accounting data in several ways:
1- They dictate the kinds of data to be collected and help ensure legibility.
2- They encourage the completeness of accounting data.
3- They serve as distributors of information.
4- Source documents help to establish the authenticity of accounting data.
Q3: Draw data flow diagram of the revenue cycle ?
Q4: What are the objective of the revenue cycle ?
- Tracking sales of goods and / or services to customers.
- Filling customer orders.
- Billing for goods and services.
- Collecting payment for goods and services.
- Forecasting sales and cash recepts.
Q5: What are the inputs of the revenues cycle ?
- Sales order. - Shipping notice.
- Sales invoice. - Debit / Credit memoranda.
- Remittance advice.
Q6: What are the outputs of the revenues cycle ?
- Financial statement information. - Cash receipts forecast.
- Customer billing statement. - Customer listing.
- Aging report. - Sales analysis reports.
- Bad debit report.
Q7: Draw data flow diagram of the purchasing cycle ?
Q8: What are the objective of the purchasing cycle ?
- Tracking purchases of goods and / or services from vendors.
- Tracking amounts owed.
- Maintaining vendor records.
- Waking timely and accurate vendor payments.
- Forecasting purchases and cash out flows.
Q9: What are the inputs of the purchasing cycle ?
- Purchase requisition. - Purchase order.
- Vendor listing. - Receiving report.
- Bill of lading. - Packing slip.
- Debit / Credit memoranda.
Q10: What are the output of the purchasing cycle ?
- Financial statement information. - Discrepancy reports.
- Vendor checks. - Cash requirements forecast.
- Check register. - Sales analysis reports.
Q11: Draw data flow diagram of the human resource cycle ?
Q12: What are the objective of human resource management cycle ?
- Hiring, Training, and employing workers.
- Maintaining employee earning records.
- Complying with regulatory reporting requirements.
- Reporting on payroll deductions.
- Making timely and accurate payment to employees.
- Providing an interface for personnel and payroll activities.
Q13: What are the inputs of human resource management cycle ?
- Personnel action forms.
- Time sheets.
- Payroll deduction authorizations.
- Tax withholding forms.
Q14: What are the output of human resource management cycle ?
- Financial statement information.
- Employee listings.
- Paychecks.
- Check registers.
- Deduction reports.
- Tax ( regulatory ) reports.
- Payroll summaries.
Chapter six : Computer Hardware and Software
Q1: Draw ( what are ) the components of the central processing unit ?
Q2: What is the purpose of each of the following:
a) Control unit.
b) Arithmetic – logic unit.
c) Main storage unit.
a) Control unit: is a circuit that interprets the instruction contained in an executable computer program and directs. The operation of the computer system.
b) Arithmetic – logic unit: ALU, executes the operation identified by the control unit.
Main storage unit: this unit fulfills two functions is provides a provides a place to store the executable instructions making up a computer program, and it provides areas for storing data processed by program.
Q3: Why is an operating system important to a computer system ?
What are its functions ?
»» A function of an operating system :
- Job control: keeping track of jobs submitted for processing.
- Job scheduling: assessing the priority of jobs awaiting processing and assigning them to a queue.
- Library management: making available various applications and systems programs needed in executing individual jobs.
- Memory management: keeping track of main memory usage and allocating it to individual jobs for storing their instructions and data.
- Peripheral management: keeping track of input and output devices in use, and assigning output to them as it is produced by cpu.
Q4: Name the components of an expert system and explain what each component does ?
»» Components of an expert system:
Component Purpose
- Knowledge base Provides a source for the knowledge obtained from a human expert.
- Inference engine Creates a chain of inferences leading to a final conclusion.
- user interface Requests information and displays explanations or conclusion.
- explanation facility Explains why the expert system draws its conclusion.
