ACC200 Ch1 Set 3 Flashcards Preview

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Flashcards in ACC200 Ch1 Set 3 Deck (20)
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1

Accessible

avaliable to users when they need it & in a format they can use

2

Business process

a set of related, coordinated, & structured activities & tasks that are performed by a person, or by a computer or a machine, & help accomplish a specific organisational goal

3

Transaction

an agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organisation - E.g. include selling goods to customers, buying inventory from suppliers & paying employees

4

Transaction processing

a process that begins with capturing transaction data, then storing data & ends with informational output, such as financial statements

5

Give-get exchange

an event where two entities exchange items - such as cash for goods or services. Many business activities are airs of events involved in give-get exchange. Most organisations engage in a small number of 'give-get' exchanges, but each type of exchange happens many times

6

Nexus of contracts

Give-get exchange

7

Business processes or transaction cycle

a group of related business processes. The major business cycles are sales & marketing, purchasing & inventory control, production, human resources & payroll, & finance

8

Five major business processes or transaction cycles that form the subsystems of the total accounting information system?

- Revenue cycle - Expenditure cycle - Human resources management (HRM) cycle / payroll subcycle - Production / conversion cycle - Financing cycle - General ledge & reporting cycle

9

Revenue cycle

where goods & services are sold for cash or a future promise to receive cash

10

Expenditure cycle

where companies purchase inventory for resale or raw materials to use in producing products in exchange for cash or a future promise to pay cash

11

Human resources management (HRM) cycle / payroll subcycle

where employees are hired, trained, compensated, evaluated, promoted & terminated

12

Production / conversion cycle

where raw materials are transformed into finished goods

13

Financing cycle?

where shares of a company are sold to investors, where companies borrow money, & where investors are paid dividends & interest is paid on loans

14

General ledger & reporting cycle

brings together the data processed through the other cycles

15

Accounting

data identification, collection & storage process as well as an information development, measurement & communication process or accounting information system (AIS)

16

Accounting Information System (AIS)

collects, records, stores & processes accounting & other data to produce information for decision-makers

17

An AIS processes data to produce information for decision-makers?

Data ---> AIS ---> Information ---> User (someone using AIS) ---> Decision

18

Six components of an AIS?

1) People who use a system 2) Procedures & instructions used to collect, process & store data 3) Data about an organisation & its business activities 4) Software used to process data

19

Six components of an AIS?

5) IT infrastructure, including computers, external devices (e.g. printers, external hard drives), & network communications devices used in an AIS 6) Internal controls & security measures that safeguard AIS data

20

Business functions of an AIS

1) collect & store data about organisational activities resources & personnel - organisations have a number of business processes, such as making a sale or purchasing raw materials, which are repeated frequently 2) transform data into information so management can plan, execute, control & evaluate activities, resources & personnel 3) provide adequate controls to safeguard an organisation's assets & data