assignment accounting information systemSubject; accounting information system, undergraduate 1...

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assignment accounting information system

Subject; accounting information system, undergraduate 1 Question ( maximum 250 words) What three transaction cycles exist in all businesses? Name the major subsystems of the three (3) cycles. 2 Question (maximum 250 words) Discuss the potential aggravations you might face as a student as a result of your university using a flat-file data management environment. 3 Question ( maximum 300 words) Explain why each of the following combinations of tasks should or should not be separated to achieve adequate internal control: a) Approval of bad debt write-offs and the reconciliation of accounts receivable subsidiary ledger and the general ledger control account. b) Distribution of payroll cheques to employees and approval of employee time cards. c) Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger. d) Writing cheques to suppliers and posting to the cash account. e) Recording cash receipts in the journal and preparing the bank reconciliation 4 Question (maximum 300 words) Puma Designs hired a consultancy firm four months ago to redesign the information system that the architects use. The architects will be able to use the state-of-the-art computer-aided design (CAD) programs to help in designing the products. The consultancy firm has been instructed to develop the system without disrupting the architects. In fact, top management believes that the best route is to develop the system and then introduce it to the architects during a training session. Management does not want the architects to spend precious billable hours guessing about the new system or putting work off until the new system is working. Required: a) Do you think that the management is taking the best course of action for the announcement of the new system? Why? b) Do you approve of the development process? Why?

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Harshit · Accepted Answer

ACCOUNTING INFORMATION SYSTEM
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	Contents
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	Answer to Question 1
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	2.
	Answer to Question 2
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	3.
	Answer to Question 3
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	4.
	Answer to Question 4
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ANSWER TO QUESTION 1
Transaction Cycles is a set of processes or transactions in a business clubbed together with each so that the overall business process is segregated in few major transactions each transaction of which is formed by a combination of multiple smaller transactions. This helps to ease numerous transactions on a day to day basis. The entire business is divided into three big transactions which are further divided into multiple small transactions with that big transaction. There are three types of Transaction Cycle:
1. Expenditure Cycle: These are such transactions that deal with the expenditure mostly related to procurement of material or services, payroll, purchase of capital assets, disbursement of cash, etc. This cycle deals with the transaction which involves the outflow of cash or cash equivalents from the organization. Major subsystem: Purchase of goods or services.
2. Conversion Cycle: This is the processing transaction of the business wherein the time is measured for the conversion of raw materials into final products. In other words this means conversion of investment in business into finished products. The product becomes ready for sale at the end of this transaction. Major Subsystem: Planning of production and cost control.
3. Revenue Cycle: The revenue cycle involves the sales of the product produced or services rendered. This cycle also includes cash collection and receipts from the parties. The collected money is again invested in the business. Major subsystem: Sales processing and delivery and receipt of cash.
ANSWER TO QUESTION 2
In a flat-file data management environment,

Subject; accounting information system, undergraduate 1 Question ( maximum 250 words) What three transaction cycles exist in all businesses? Name the major subsystems of the three (3) cycles. 2...

Answer To: Subject; accounting information system, undergraduate 1 Question ( maximum 250 words) What three...

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