Questions from Accounting Information Systems

Q: Many companies use accounts receivable aging schedules to project future cash inflows

Many companies use accounts receivable aging schedules to project future cash inflows and bad-debt expense. Review the information typically presented in such a report (see Figure 12-8). Which specifi...

Q: Table 12-1 suggests that restricting physical access to inventory is

Table 12-1 suggests that restricting physical access to inventory is one way to reduce the threat of theft. How can information technology help accomplish that objective?

Q: Invoiceless pricing has been adopted by some large businesses for B2B transactions

Invoiceless pricing has been adopted by some large businesses for B2B transactions. What are the barriers, if any, to its use in B2C commerce?

Q: The use of some form of electronic “cash” that would

The use of some form of electronic “cash” that would provide the same kind of anonymity for e-commerce that cash provides for traditional physical business transactions has been discussed for a long t...

Q: In this chapter and in Chapter 12 the controller of AOE

In this chapter and in Chapter 12 the controller of AOE played a major role in evaluating and recommending ways to use IT to improve efficiency and effectiveness. Should the company’s chief informati...

Q: Lexsteel, a manufacturer of steel furniture, has facilities throughout the

Lexsteel, a manufacturer of steel furniture, has facilities throughout the United States. Problems with the accounts payable system have prompted Lexsteel’s external auditor to recommend a detailed st...

Q: Companies such as Wal-Mart have moved beyond JIT to VMI

Companies such as Wal-Mart have moved beyond JIT to VMI systems. Discuss the potential advantages and disadvantages of this arrangement. What special controls, if any, should be developed to monitor V...

Q: Procurement cards are designed to improve the efficiency of small noninventory purchases

Procurement cards are designed to improve the efficiency of small noninventory purchases. What controls should be placed on their use? Why?

Q: In what ways can you apply the control procedures discussed in this

In what ways can you apply the control procedures discussed in this chapter to paying personal debts (e.g., credit card bills)?

Q: Should every company switch from the traditional 3-way matching process

Should every company switch from the traditional 3-way matching process (purchase orders, receiving reports, and supplier invoices) to the 2-way match (purchase orders and receiving reports) used in E...