ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which of the following best describes the main purpose of an accounting information system (AIS) within a business?
An accounting information system exists to collect, record, process and report financial transactions and data so that managers and external users can make decisions. Marketing, staff recruitment and supplier negotiation are other business functions, not the core purpose of an accounting system.
- ATo collect, record, process and report financial transactions and data for usersCorrect
- BTo design the organisation's marketing campaigns and pricing strategy
- CTo recruit, train and appraise the finance department's staff
- DTo negotiate credit terms with the organisation's suppliers
Explanation
An AIS captures financial transactions, processes them and produces reports for management and external users. The other options describe marketing, human resources and purchasing activities, which are separate functions even though they may use AIS data.
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