Accounting Information System

Week 1

Ans 1: Transaction cycles refer to the holding of goods in the process of accounting for financial transactions. There are a large number of transactions that happen regularly. Based on certain characteristics of transaction cycles, these are grouped into certain categories. This helps in dividing the transaction cycles into smaller numbers.

3 types of transaction cycles that are used in every business includes:

  • Expenditure cycle: Expenditure cycles include the activities that are related to the payment and acquisition of services and goods. It includes the activities that determine the purchasing activities and the receipt for goods and payments to suppliers. The four subsystems of the expenditure cycle includes
  1. Purchasing/ Accounts Payable
  2. Payroll
  3. Fixed Assets
  4. Disbursement of cash
  • Conversion cycle: The conversion cycle is the essence of any business. It considers all the transactions that include cash or inventory and their conversions for the business accordingly. The sub system included in this are as follows:
  1. Cost accounting
  2. Planning, control, and production.
  • Revenue cycle: Revenue cycle refers to the term that is used in the business or accounting that depicts the journey of the product from its beginning to sale. It starts when a business delivers a product or provides a service and it comes to an end when the payment is made in full by the customer. It includes the transactions that are related to the process of sales. The subsystems include in this are:
  1. Sales ordering process
  2. Cash receipts

Week 2

Ans a) Vendor represents the party of the process through which the goods and services are purchased or are made available to the customers. It refers to the party that is paid for the goods and services.

Invoice: It represents the payments that are to be made for the purchases that have been done. Every transaction should have an invoice as a proof for the receipt of goods, before the payment is made.

Ans b) AP Department: AP department refers to the Accounts payable department. The department functions as in charge of the approval of the payment that is related to the company's vendor ad also the transactions that are related to the creditor transactions. The department approves payment based on supporting documents for the transactions.

PO: PO refers to the purchase orders that reissued by the company to the seller. This keeps track of all the information about the goods that have been ordered as well as the quantities.

Rec Report: Rec Rept refers to the recording receipt. This operation involves maintaining a record of inventory as and when inventory is received by providing it a number.

Invoice: In this operation invoices are received and recorded in the ledger.

T: T refers to Transaction documents. It records the transactions when an inventory is purchase as per the invoices.

Week 3

Ans 3: Flat file model of database contains records but with no relationship that is structured with the other files. It is a model where no files are related to each other. The end-user in this type of database owns their data rather than sharing it with other users. The files can be edited, formatted as per the specific needs of the user. It restricts sharing and allows editing as required by the single user. The potential aggravations a student might face:

  • Redundancy: Data for a student can be repeated and it won’t provide a clear picture. For eg: A student studying two subjects can have two entries with their name. This will create redundancy.
  • Restricted sharing: A student constructing a project or doing research cannot share the progress with the teacher. The flat file model does not allow multi users function. This creates a problem for data sharing.
  • Storage: A college using a flat-file model will have lots of data that will be unnecessary as there will be repetition. The student will find it difficult to find what they are looking for. This will create a potential aggravations for the student. The task that could be completed in a faster manner will take more time to get completed. Thus, the flat file model won't support a smooth function in schools and will definitely create problems for the students.

Week 4

Ans. a) Approval of bad debts write offs and reconciliation for subsidiary receivable ledger and the general ledger control account

These two are separate and should be separated so that the person who is approving the write off can still do the reconciliation. It is important that the person who is posting the transactions should be separate from the person who is reconciling them.

b) Distribution of the cheques payroll to the employees and approval of the time cards of the employees

This two actions should be separated so to avoid the fraud collusion. If the person who is approving the paychecks changes the punch in time of the employee than it will be fraud. This a separate person for the purpose should be assigned these tasks for better control.

c) Posting of amounts to both the cash receipts and cash disbursement journals to general ledger.

If only postings are done by a single person, then these activities can be done by the same person. This shows that the internal control is in place.

d) Writing cheques to the suppliers and posting it to the cash account

These tasks should be carried on by different persons. This helps in verifying the check and then being posted by someone else. This will help in placing internal control as someone might write a cheque for higher amount but it can be checked by the person who is posting it in the cash account, so that no extra money is withdrawn.

e) Recording cash receipts in journal and preparing the bank reconciliation

Recording the receipts and preparing reconciliation can be done by one person. The receipts should be made by different person. Recording and creating a receipt cannot be done by one person as it increases the chances of fraud.

Week 5

Ans:a) Yes, Management is taking the best course of action for announcing a new system. By this method the present work will not be disrupted. If the announcement is done before than employees lay off or postpone the work in anticipation of using the software and doing it easily. This hampers the functioning in the company. Thus, it is better that company continue its function that are happening as they are and in the meantime they can develop and test the software. Once the software is ready they can launch it in the training session. This will provide information to the employees when it is required. Not before and not in the process. Hence, the management of the company has taken the best course for the action for the announcement of the system which it is developing.

b) The development process is smooth. It won’t disrupt the work of architects and they will continue to do the work that is required by them. Also, the normal flow of operations will be carried out by the company. As mentioned also it will help in reducing the hours that employees will waste on predicting about the software. None the less some will put their tasks on hold. The flow of work will be disrupted even before the launch of the system. Once the system is developed, then it can be introduced. With a session of training to employees, it will be easier for them to adopt it accordingly. They then can shift their work to a built software rather than guessing and wasting the time on what kind of software will be launched. How it will be helpful etc. Thus, in my opinion the process of development is smooth for the launch of software.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts


  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

  • Total

  • Let's Start

500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?