Accounting Information System Definition - According to the Text, an Accounting

question 16

Essay

Accounting information system definition - According to the text, an accounting information system is a set of interrelated activities, documents and technologies designed to collect data, process it and report information to a diverse group of internal and external decision makers in organizations. Consider that definition in light of the following scenario:
A local video store purchases multiple copies of popular movies and television series by issuing electronic purchase orders. When the movies come in, a clerk fills out a receiving report and puts the movies on the shelves by category (e.g., all the comedies together). Each copy of each movie receives a bar code that identifies it for inventory purposes. When a client selects a movie to rent, a clerk scans the bar code; the company's information system updates its database. The client receives an invoice noting the title of the video, the rental date, the clerk's name and the due date. At the end of each month, the store manager downloads the rental and purchase information and transmits it to the store's accountant. The accountant prepares a monthly income statement, balance sheet and bank reconciliation and sends them back to the store within three days. The store manager reviews all three with the employees.
Analyze the video store's accounting information system by identifying two examples of each item in the grid below. Record your answers in the spaces provided. $\begin{array}{|l|l|l|}\hline \text { Activities } &\quad\quad\quad\quad\quad&\quad\quad\quad\quad\quad \\\hline \text { Data } & \\\hline \text { Decision makers }\\\hline \text { Documents}\\\hline \text { Information}\\\hline \text { Technologies}\\\hline \end{array}$

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Definitions:

Repeated Games

A strategic scenario in which the same game or situation is played multiple times, allowing for strategy evolution based on past outcomes.

Simultaneous

Occurring, operating, or done at the same time.

Sequential Decision

A process of making decisions one after another, where each decision is dependent on the outcome of previous decisions.

Collusion

An agreement, usually secretive, between two or more parties to limit competition, set prices, or manipulate market conditions.