Accounting Information Systems Have Five Generic Elements

question 9

Essay

Accounting information systems have five generic elements.Which one applies to each item listed below within the context of the sales/collection process? a.Customer check, from the point of view of the seller b.Customer order c.Employee master file d.Invoice e.Maintaining adequate inventory f.Record transactions in the AIS g.Remittance advice, from the point of view of the seller h.Sales/inventory junction table i.Use of the seven steps j.Using information technology to fill orders

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Definitions:

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.

Unsystematic Risk

The risk that is unique to a specific company or industry, which can be mitigated through diversification.