Accounting Information System

Faculty of Business Studies
ACC300
Accounting Information System
Tutor Marked Assignment
FALL 2021/2022

Number of Pages:7
((including 2 cover sheets

Instructions:

Plagiarism
The Arab Open University Definitions of cheating and plagiarism
According to the Arab Open University By-laws, “The following acts represent cases of cheating and plagiarism:
• Verbatim copying of printed material and submitting them without proper academic acknowledgement and documentation.
• Verbatim copying of material from the Internet, including tables and graphics.
• Copying other students’ notes or reports.
• Using paid or unpaid material prepared for the student by individuals or firms.
• Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”
• All University programs are required to apply penalties that are consistent with the University by laws.
About TMA:
The TMA covers the accounting information systems concepts and practices in the businesses; as you work, you will gain confidence in your ability to use the accounting information systems of real company. It is marked out of 100 and is worth 25% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within chapters 1 to 4, and 12. This TMA requires you to apply the course concepts.

The TMA is intended to:
 Increase the students’ knowledge about the reality of the accounting as a profession.
 Assess students’ understanding of key learning points within chapters 1 to 4
 Develop the ability to understand and interact with the nature of the accounting information systems in reality.
 Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
 Develop basic ICT skills such as using the internet.
General instructions for students:
Plagiarism: It is imperative that you write your answers using your own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy.

Word count: Your answers are expected to be within the specified word count. A 10% deviation from word count limit is acceptable. Not adhering to specified word count could result in the deduction of up to 10 marks of your total TMA mark.

Format and Presentation: In your answer, you should explain each point or inquire separately.
Use the following headings (below) to make up the different sections of your answer:
PT3 form (Cover) Available on LMS
Contents Title and contents page
TMA

Reference list Recorded according to the Harvard style – Available on LMS
Failing to do so could result in the deduction of up to 10 marks of your total TMA mark.

PART ONE (60 MARKS)
Question I (30 marks)

Salma started Bag Zone in Riverside with the goal of providing good quality handbags. Unique designs and utilizing uncommon materials for the making of the handbags is her competitive advantage, and completed products can be wholesaled to fashion retailers or placed on consignment in local retail shops. Additionally, the handbags can also be sold directly to consumers by displaying the products at fashion or craft shows or selling them online. Business has been brisk and she has established a sizeable client base over the last five years. She thinks that it could be the time to spend in an information system to record details about the sales, payroll process and offer more details about the inventory

Salma believes that it will be possible to modernize some of the business process for reducing the amount of time, which it is taking for data processing. She wants to open up four further stores throughout the next three years. Systems used should be capable of supporting these developments
Currently, Salma finds that no details are captured by the system about the customer. Only details about the purchased goods, the method of payment, member of the staff, purchased quantity, and price & totals are captured.
It has been analysed that levels of stock are recorded by using the stock card. It can be seen that the details of the new inventory are entered into the cards when the new stock and details of sold units are changed at the termination of each trading day. It is very clear that when things become hectic, marketing off stock sheets can be forgotten and hence they are not very exact. To know the level of the stock item, the physical check is needed.
Required
As you have knowledge about information systems, would you provide assistance to Salma in solving various issues like maintenance of customer details, maintenance of marketing off stock sheets, collection of useful data for sales forecasting and accurate calculation of wages & to electronically pay staff. You should indicate that your suggestion would help each of the stores to improve the organizational performance along with store’s efficiency.

Question 2 (20 marks)
Business Process is a defined sequence of business activities that use resources to transform specific inputs into specific outputs to achieve a business goal.

Explain business process documentation showing its importance

Question 3 (10 marks)
State whether the following statements are TRUE (T) or FALSE (F)

1. An activity can depict a single action or some logical combination of actions depending on the required level of detail to achieve the objectives of the business process analysis.
2. The key difference between artificial intelligence applications and machine learning is that machine learning involves the computer learning from specific instructions versus experience.
3. In Unified Modeling Language (UML) primary keys cannot by NULL.
4. An aggregation relationship is a form of generalization relationships.
5. Business rules set criteria for branching in activity models.
6. To be valuable business partners, accountants must understand how the business delivers value to its employees.
7. The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.
8. Alexa from Amazon and Siri from Apple are examples of robotic process automation
9. The cost of a false prediction is important to data analysts.
10. Business Process Modeling Notation (BPMN) activity models typically show the sequence of flow from right to left and top to bottom.
PART TWO (40 MARKS)
Question 1: (20 marks)
Firms invest in accounting information systems to create value. The value chain illustrates how during each primary activity, the product should gain some value. An A I S serves an important role in enabling value in each primary and supporting activity.
Explain the above statement showing where do AIS add value to a business?
• In the primary activities?
• In the support activities?
• The Effect of A I S on the income statement
. Question 2 (12 marks)
Use the following description to create a Business Process Modeling Notation (BPMN) activity diagram of Nora’s process.

Nora accesses the Amazon.com website to purchase a favorite musician’s latest album. She searches for the musician’s name. Amazon displays the results of the search, and she selects the correct entry. She samples the music and then decides whether to purchase the album. If she decides to purchase the album, then she must decide whether to purchase a physical CD or just download the MP3 files.

If she decides to purchase the CD, she clicks on the buy now button. Since she is an Amazon Prime member, she automatically receives free 2-day delivery and the item is charged to her credit card. She then waits 2 days for the delivery of the CD. When it arrives, she can enjoy the music.

If she decides to purchase the MP3, she selects that option and again clicks on the buy now button. She is charged for the item and taken to a page to download her music. She downloads the album, and then she can enjoy her music.

Question 3 (8 marks)
Identify the classes and associations in the following narrative. Then answer questions 1 to 8 below:
Shaykha ran a small frozen yogurt shop. She bought several flavors of frozen yogurt mix from her yogurt supplier. She bought plastic cups in several sizes from another supplier. She bought cones from a third supplier. She counts yogurt and cones as inventory, but she treats the cups as operating expense and doesn’t track any cup inventory.
1. How many classes did you include in your diagram?
a. 2
b. 3
c. 4
d. 5
2. Which of the following best describes the names of the classes that you selected for your diagram?
a. Yogurt, Cones, Supplier
b. Shaykha, Yogurt Shop, Supplier
c. Inventory, Purchases, Suppliers
d. Plastic cups, Shaykha, Cones
3. If there is an association between a SUPPLIERS class and a PURCHASES class, which of the following best describes the multiplicities next to the PURCHASES class? Assume that SUPPLIERS are added to the database before the first purchase.
a. Minimum 0, Maximum 1
b. Minimum 0, Maximum *
c. Minimum 1, Maximum 1
d. Minimum 1, Maximum *
e. There is no association between SUPPLIERS and PURCHASES in the model
4. If there is an association between a SUPPLIERS class and a PURCHASES class, which of the following best describes the multiplicities next to the SUPPLIERS class? Assume that SUPPLIERS are added to the database before the first purchase.
a. Minimum 0, Maximum 1
b. Minimum 0, Maximum *
c. Minimum 1, Maximum 1
d. Minimum 1, Maximum *
e. There is no association between SUPPLIERS and PURCHASES in the model
5. If there is an association between an INVENTORY class and a PURCHASES class, which of the following best describes the multiplicities next to the PURCHASES class? Assume that INVENTORY records are added to the database before the first purchase.
a. Minimum 0, Maximum 1
b. Minimum 0, Maximum *
c. Minimum 1, Maximum 1
d. Minimum 1, Maximum *
e. There is no association between INVENTORY and PURCHASES in the model
6. If there is an association between an INVENTORY class and a PURCHASES class, which of the following best describes the multiplicities next to the INVENTORY class? Assume that INVENTORY records are added to the database before the first purchase.
a. Minimum 0, Maximum 1
b. Minimum 0, Maximum *
c. Minimum 1, Maximum 1
d. Minimum 1, Maximum *
e. There is no association between INVENTORY and PURCHASES in the model
7. If there is an association between a SHAYKHA class and a SUPPLIERS class, which of the following best describes the multiplicities next to the SHAYKHA class? Assume that SUPPLIERS records are added to the database before the first purchase.
a. Minimum 0, Maximum 1
b. Minimum 0, Maximum *
c. Minimum 1, Maximum 1
d. Minimum 1, Maximum *
e. There is no association between SHAYKHA and SUPPLIERS in the model

8. Assume that Shaykha’s yogurt business expanded and Shaykha hired several employees to purchase inventory from suppliers. What class(es) and association(s) would you add to the diagram to track this information?
a. An EMPLOYEES class and an association between EMPLOYEES and PURCHASES.
b. An EMPLOYEES class and an association between EMPLOYEES and SUPPLIERS.
c. An EMPLOYEES class and an association between EMPLOYEES and INVENTORY.
d. An EMPLOYEES class and an association between EMPLOYEES and SHAYKHA.
e. None of these is a correct addition to the diagram.
End of TMA Questions
Good Luck