Question

As a new employee of a local accounting firm, your first client is Orlando University Bookstore. Jack Stone, the manager, would like some advice on several aspects of the bookstore’s accounting information systems. Submit a 2 page report detailing the bookstore’s need for an AIS, the benefits of the system and how this data will be used to create financial reports.

Answer 1

An AIS is crucial for the bookstore to track financial transactions, create financial reports, and make informed decisions.

Step-by-step explanation:

An accounting information system (AIS) is crucial for the Orlando University Bookstore as it helps in managing and tracking financial transactions. It provides benefits such as accurate and timely financial reporting, improved decision-making, and efficient inventory management.

Using the data from the AIS, financial reports can be created to assess the financial performance of the bookstore. For example, the income statement can show the revenue, expenses, and net income, while the balance sheet can provide information about the store's assets, liabilities, and equity.

By implementing an AIS and using the data to generate financial reports, the Orlando University Bookstore can have a better understanding of its financial status, make informed decisions, and plan for future growth and profitability.