Question
Boyce Limited is a manufacturing company that producesfurniture. To improve efficiency and usefulness, Boyce Limited isconstantly incorporating advanced, information technology into itsbusiness information systems. When
Boyce Limited is a manufacturing company that producesfurniture. To improve efficiency and usefulness, Boyce Limited isconstantly incorporating advanced, information technology into itsbusiness information systems. When Boyce Limited does not haveavailable production capacity, sometimes it purchases furniturefrom outside suppliers to fulfill customer orders.
First, Inventory Control prepares a purchase requisition wheninventory approaches the reorder point and sends it to Purchasingand Accounts Payable. Then, Purchasing locates the authorizedvendor in the vendor file, prepares a purchase order, and updatesthe purchase order file. Purchasing then sends the purchase orderto Vendor, Receiving, and Accounts Payable. Accounts Payableprepares a summary of all purchase orders issued that day andforwards the total to General Ledger for posting to the GL file.Goods arrive at Receiving with a packing slip. Receiving prepares areceiving report and forwards it with the goods to Warehouse.Warehouse verifies that goods received match those listed on thereceiving report.
Questions:
- Identify the accounting cycle described in the scenario. Listfour other types of accounting cycles.
- List the departments responsible for authorization, custody,and recording for the accounting cycle describe in thescenario.
- Recommend three controls of an accounting system.
- Provide an explanation of an accounting informationsystem.
- List three unique risks associated with a computer-basedbusiness information system.
Step by Step Solution
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Answer A The accounting cycle described in the scenario is the purchase cycle Other types of accounting cycles include the sales cycle the payroll cyc...Get Instant Access to Expert-Tailored Solutions
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