QUESTIONS 13–17 ARE BASED ON THE FOLLOWING PASSAGE.D.DUE TO ITS LOCATI...

9. According to the passage, the large number ofproduct details and regional demographics, andsmall islands along the coast of Maine are theaccounting departments keep track of financial dataresult ofand issue reports. To be effective, this data must bea.glaciers forcing a mountain range into the sea.organized into a meaningful and useful system. Suchb.Maine’s location between the temperate andsub-Arctic zones.a system is called a management information system,abbreviated MIS. The financial hub of the MIS is thec. the irregularity of the Maine coast.d.the need for summer communities for wealthyaccounting information system.tourists and artists.(2) Accounting is the information system thatValue is generally agreed to be the original cost of arecords, analyzes, and reports economic transac-good or service. c) How is a transaction to be clas-tions, enabling decision makers to make informedsified? Correct classification places informationchoices when allocating scarce economic resources.about the transaction into the proper account forIt is a tool that enables the user, whether a businessstorage and later use. A simple account has threeparts: a title and two columns. The left column isentity or an individual, to make wiser, moreinformed economic choices. It is an aid to planning,called the “debit” column. The right column is calledcontrolling, and evaluating a broad range of activi-the “credit” column. A debit could represent anties. Bookkeeping, often confused with accounting,increase or a decrease to the account, depending onhow the account is classified. The same is true for ais actually a subset of accounting. It is the compo-nent of accounting that does the mechanical, repet-credit.(4) Although records of the exchange of goodsitive record keeping; but it does not include theanalysis or reporting of economic information.and services have existed for centuries, it was the cre-ation of the double-entry system of accounting thatModern accounting is usually separated into eitherenabled the development of the modern, highlymanagerial accounting or financial accounting.A managerial accounting system is intended only forsophisticated methods of business control andadministration in use today.internal use by management. The primary guidelinefor implementing a managerial accounting system isthat the information must be “useful.” A financial