Chapter 1, Problem 1QC

To determine

Accounting Information System:

Accounting is an information system that obtains the business transaction, records the transactions obtained, processes the records into meaningful information and statements and then presents this information to the decision-makers.

To identify:

The functions of the accounting information system.

Explanation of Solution

Solution:

The answer to the question is: d. All of the above.

Explanations:

Given: Choices for the functions of the accounting information system:

1. Measures business activities.
2. Communicates the results to decision-makers.
3. Processes the information into reports.
4. All of the above.

Given options can be analyzed as follows:

1. Accounting is an information system that obtains the business transaction and records it in the books of account. Hence, it is true that it measures business activities.
2. Accounting is an information system that presents the processed information to the decision-makers. Hence, it is true that it communicates the results to decision-makers.
3. Accounting is an information system that processes the records into meaningful information or reports. Hence, it is true that accounting is an information system processes the information into reports.
4. Hence, we can say all the above statements are true about the accounting information system.

Conclusion

We can conclude that accounting is an information system that measures the business activities by collecting financial information, and it prepares reports from the information collected and communicates the reports to the users and decision-makers.