Question

Fred and Wilma own and operate Framing World, a company that frames diplomas, professional certificates and other documents. Customers bring in the documents they want framed; Fred or

Wilma fills out a sales order noting the client's information (name, address and so on), the type of document to be framed and the details of the framing itself (such as the type and colour of frame).They also scan the document to the store's internal computer network for reference purposes.

Most documents are framed by hand, but Framing World also uses some specialised equipment for more complex jobs. The company maintains its accounting records in a general ledger system; the firm's accountant prepares monthly reports, such as income statements and bank reconciliations, using spread sheets and word processing software. Work in process and finished goods inventory are kept secure with alarm systems and video surveillance.

Accounting information systems typically comprise five elements.

Analyse the preceding narrative by identifying a specific example of each element. Explain your responses in the grid below.

(Explain the process and procedures for recording and storing financial data).

AIS Element Input	Example from Framing World
Input
Process
Output
Storage
Internal Control

Answer 1

AIS Element Examples from framing world

Input The company maintains its accounting records in a general ledger system. As inputs are classified as cost under accounting then the The General Ledger is the primary accounting record for a business which helps in tracking all financial transactions and used to generate financial statements. So accounting records in General ledger system can be termed as Input example from framing world

Process The firm's accountant uses spread sheet and word processing software. As Process include steps taken in order to achieve output. As spread sheet and word processing software is a step to achieve monthly report(output)

Output After the process the firm accountant will produce output monthly reports, such as income statements and bank reconciliations. As output refers to anything prepared by the person so in this case Monthly Reports are output.

Storage Work in Progress and Finished goods i inventory are stored and they also scan the information and store to internal computer network for reference purpose.

Internal control Information is kept secure with alarm systems and video surveillance. It can be termed as Acess Internal control . As internal control is a procedural measure to protect the accounting data so this example can be considered in internal control or Access internal control.

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