In Chapter 1,Figure 1-4 Shows the Factors That Influence the Design

question 99

Multiple Choice

In Chapter 1,Figure 1-4 shows the factors that influence the design of AIS.The diagram shows a bi-directional arrow between the organizational culture and the AIS.The reason for this two-way interchange between organizational culture and AIS is

• A)that the AIS should not influence the values of the organizational culture.
• B)because the organization's culture influences the AIS,and likewise the AIS influences the organization's culture by controlling the flow of information within the organization.
• C)due to the transfer of managers between the two corporate elements.
• D)the AIS impacts the organization's key strategies.

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Definitions:

Adjusting Entries

Accounting records prepared at the close of a fiscal period to distribute profits and costs to the period they genuinely took place.

Accrued Revenues

Revenues earned by a company for services or goods provided but not yet received or billed to the client.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Adjustments

Entries made in accounting records to correct or update financial information.