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True/False questing on accounting information systems

4. Statement evaluation. designing and implementing accounting information systems requires judgment and critical thinking. Your job is to explain whether each statement is (i) always true, (ii) sometimes true, or (iii) never true. If you answer (ii), explain when the statement is true.

a. Data in an accounting information system are stored electronically, such as on a disk.
b. "Truth" is one of the qualitative characteristics identified by the FASB conceptual framework.
c. The FASB conceptual framework identifies eight elements of financial statements.
d. Information you find on the Internet is reliable.
e. Cost-effectiveness is an important criterion in the design of accounting information systems.
f. A Web site that is "under construction" may have a problem with adequate coverage according to the UMUC information criteria.
g. Both internal and external parties can use information provided by the accounting information system.
h. Most companies have two different accounting information systems: one for internal use and one for external use.
i. In an AIS, source documents are paper-based.
j. Problems and questions in accounting information systems are open-ended; they do not have "right" or "wrong" answers.

Solution Preview

a. Sometimes true
Small organizations store their data on a disk. Large organizations use other options such as storage over cloud or external hard disks

b. Always true

c. Never true
there are 7 elements - assets, liabilities, equity, revenues, expenses, gains, and losses

d. ...

Solution Summary

10 statements on designing and evaluating accounting information systems are evaluated for truth and some explanation as to when they are and aren't true is given.