AIS

Question 1

System

Answer 1

Two or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system.

Question 2

Goal Conflict

Answer 2

When a subsystem’s goals are inconsistent with the goals of another subsystem or the system as a whole.

Question 3

Goal Congruence

Answer 3

When a subsystem achieves its goals while contributing to the organization’s overall goal.

Question 4

Data

Answer 4

Facts that are collected, recorded, stored, and processed by an information system.

Question 5

Information

Answer 5

Data that have been organized and processed to provide meaning and improve decision making.

Question 6

Information Overload

Answer 6

Exceeding the amount of information ahuman mind can absorb and process, resulting in a decline in decision-making quality and an increase in the cost of providing information.

Question 7

Information Technology (IT)

Answer 7

The computers and other electronic devices used to store, retrieve, transmit, and manipulate data.

Question 8

Value of Information

Answer 8

The benefit provided by information less the cost of producing it.

Question 9

Business Process

Answer 9

A set of related, coordinated, and structured activities and tasks, performed by a person, a computer, or a machine, that help accomplish a specific organizational goal.

Question 10

General Ledger and Reporting System

Answer 10

Information-processing operations involved in updating the general ledger and preparing reports for both management and external parties.

Question 11

Accounting Informatin System

Answer 11

A system that collects, records, stores, and processes data to produce information for decision makers. It includes people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures.

Question 12

Predictive Analysis

Answer 12

The use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities.

Question 13

Value Chain

Answer 13

Linking together of all the primary and support activities in a business. Value is added as a product passes through the chain.

Question 14

Primary Activities

Answer 14

Value chain activities that produce, market, and deliver products and services to customers and provide post-delivery service and support.

Question 15

Support Activities

Answer 15

Value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently and effectively.

Question 16

Supply Chain

Answer 16

An extended system that includes an organization’s value chain as well as its suppliers, distributors, and customers.

Question 17

Data Processing Cycle

Answer 17

The four operations (data input, data storage, data processing, and information output) performed on data to generate meaningful and relevant information.

Question 18

Source Documents

Answer 18

Documents used to capture transaction data at its source - when the transaction takes place. Examples include sales orders, purchase orders, and employee time cards.

Question 19

Turnaround Documents

Answer 19

Records of company data sent to an external party and then returned to the system as input. Turnaround documents are in machine-readable form to facilitate their subsequent processing as input records. An example is a utility bill.

Question 20

Source Data Automation

Answer 20

The collection of transaction data in machine-readable form at the time and place of origin. Examples are point-of-sale terminals and ATMs.

Question 21

General Ledger

Answer 21

Ledger that contains summary-level data for every asset, liability, equity, revenue, and expense account of the organization.

Question 22

Subsidiary Ledger

Answer 22

Ledger used to record detailed data for a general ledger account with many individual subaccounts, such as accounts receivable, inventory, and accounts payable.

Question 23

Control Account

Answer 23

Title given to a general ledger account that summarizes the total amounts recorded in a subsidiary ledger. For example, the accounts receivable control account in the general ledger represents the total amount owed by all customers. The balances in the accounts receivable subsidiary ledger indicate the amount owed by each specific customer.

Question 24

Coding

Answer 24

Systematic assignment of numbers or letters to items to classify and organize them.

Question 25

Sequence Codes

Answer 25

Items are numbered consecutively so that gaps in the sequence code indicate missing items that should be investigated. Examples include prenumbered checks, invoices, and purchase orders.

Question 26

Block Code

Answer 26

Blocks of numbers that are reserved for specific categories of data, thereby helping to organize the data. An example is a chart of accounts.

Question 27

Group Codes

Answer 27

Two or more subgroups of digits that are used to code an item. A group code is often used in conjunction with a block code.

Question 28

Mnemonic Code

Answer 28

Letters and numbers that are interspersed to identify an item. The mnemonic code is derived from the description of the item and is usually easy to memorize.

Question 29

Chart of Accounts

Answer 29

A listing of all the numbers assigned to balance sheet and income statement accounts. The account numbers allow transaction data to be coded, classified, and entered into the proper accounts. They also facilitate financial statement and report preparation.

Question 30

General Journal

Answer 30

Journal used to record infrequent or nonroutine transactions, such as loan payments and end-of-period adjusting and closing entries.

Question 31

Specialized Journal

Answer 31

Journal used to record a large number of repetitive transactions such as credit sales, cash receipts, purchases, and cash disbursements.

Question 32

Audit Trail

Answer 32

Path that allows a transaction to be traced through a data processing system from point of origin to output or backwards from output to point of origin. It is used to check the accuracy and validity of ledger postings and to trace changes in general ledger accounts from their beginning balance to their ending balance.

Question 33

Entity

Answer 33

Item about which information is stored in a record. Examples include an employee, an inventory item, and a customer.

Question 34

Attributes

Answer 34

Properties, identifying numbers, and characteristics of interest of an entity that is stored in a database. Examples are employee number, pay rate, name, and address.

Question 35

Field

Answer 35

Portion of a data record where the data value for a particular attribute is stored. For example, in a spreadsheet each row might represent a customer and each column is an attribute of the customer. Each cell in a spreadsheet is a field.

Question 36

Record

Answer 36

Set of fields whose data values describe specific attributes of an entity, such as all payroll data relating to a single employee. An example is a row in a spreadsheet.

Question 37

Data Value

Answer 37

Actual value stored in a field. It describes a particular attribute of an entity. For example, the customer name field would contain "ZYX Company" if that company was a customer.

Question 38

File

Answer 38

Set of logically related records, such as the payroll records of all employees.

Question 39

Master File

Answer 39

Permanent file of records that stores cumulative data about an organization. As transactions take place, individual records within a master file are updated to keep them current.

Question 40

Transaction File

Answer 40

File that contains the individual business transactions that occur during a specific fiscal period. A transaction file is conceptually similar to a journal in a manual AIS.

Question 41

Database

Answer 41

Set of interrelated, centrally controlled data files that are stored with as little data redundancy as possible. A database consolidates records rpeviously stored in separate files into a common pool and serves a variety of users and data processing applications.

Question 42

Batch Processing

Answer 42

Accumulating transaction records into groups or batches for processing at a regular interval such as daily or weekly. The records are usually sorted into some sequence (such as numerically or alphabetically) before processing.

Question 43

Online, Real-Time Processing

Answer 43

Computer system processes data immediately after capture and provides updated information to users on a timely basis.

Question 44

Document

Answer 44

Record of a transaction or other company data. Examples include checks, invoices, receiving reports, and purchase requisitions.

Question 45

Reports

Answer 45

System output,organized in a meaningful fashion, that is used by employees to control operational activities, by managers to make decisions and design strategies, and by investors and creditors to understand a company's business activities.

Question 46

Query

Answer 46

Request for the database to provide the information needed to deal with a problem or answer a question. The information is retrieved, displayed or printed, and/or analyzed as requested.

Question 47

Enterprise Resource Planning (ERP) System

Answer 47

System that integrates all aspects of an organization's activities - such as accounting, finance, marketing, human resources, manufacturing, inventory management - into one system. An ERP system is modularized; companies can purchase the individual modules that meet their specific needs. An ERP facilitates information flow amoung the company's various business functions and manages communications with outside stakeholders.