Making choices and exercising judgment.As you read in the chapter, AIS is all about making choices and evaluating their costs and benefits. These questions and exercises are designed to help you develop those skills. When I give exercises like these to my own students, they frequently say, “So does this mean there’s no right or wrong answer?” You may be thinking the same thing, so I’ll tell you what I tell them: The point isn’t whether your answer is “right” or “wrong,” or even if such answers exist. The point here is for you to make choices and create answers you can defend in the face of other alternatives.
a. RKH Company is a small consulting service based just outside Los Angeles. It has two partners, Sebastian and Viola, and average monthly sales revenue of $25,000. At any one time, Sebastian and Viola have up to three consulting engagements running simultaneously. Monthly expenses include office rent, supplies, utilities, professional magazine subscriptions, and automobile expenses. What form(s) of information technology, if any, should Sebastian and Viola use in their accounting information system? Explain the costs and benefits of your recommendation.
b. Most accounting information systems in use today employ principles of debit and credit for recording transactions. What are the costs and benefits of using the debit/credit system for transaction recording? If the system is destined to fade into disuse, what do you think will replace it?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.