CH2: FOUNDATIONAL CONCEPTS OF AIS Flashcards Preview

Accounting Information Systems > CH2: FOUNDATIONAL CONCEPTS OF AIS > Flashcards

Flashcards in CH2: FOUNDATIONAL CONCEPTS OF AIS Deck (54)
Loading flashcards...
1

Accounting information system

captures, records, & reports accounting info

2

business process

sequence of steps to get a desired result for the organization; initiated by an event

Examples: collect cash, hire employees, sell, produce

3

Interrelationships of Business Processes & the AIS

every time that a business process occurs, AIS must capture, processes, record & generate reports of financial data as it happens.

Example: Business processes among a restaurant from ordering a meal to paying the bill.

4

4 General Categories of Business Process

Revenue
Conversion
Expenditure
Administrative

5

3 types of AIS

Manual
Legacy
Modern, Integrated IT Systems

6

Manual Systems

source documents and paper-based recordkeeping; manual records into manual accounting system

7

Source Document/ 3 important Functions

recordkeeping captures info on key information of a transaction; captures date, quantity, $$ amount

1. input data to record transaction
2. triggers business process to begin
3. Audit trail

8

Turnaround Document

the output of information from AIS that can be input into AIS.

Example: CC Stmt issued from CPU. Once payment is submitted, input to match your CC account number. No human error.

9

General Ledger

details on entire accounts used in org's accounting systems

10

General journal

non routine transactions; adjusting and closing entries

11

Special Journals

record specific types of transactions

payroll journal, cash receipts journal, cash disbursements journal

12

subsidiary Ledgers

detailed information for routine transactions

AR Subsidiary ledger for each customer - should tie back to the AR General Ledger Account

13

What is an integral part of IT besides hardware and software?

the human capital required to capture, record and process information in AIS

14

What are modules in the accounting system

similar to the subsidiary ledgers of AR, AP, & payroll

15

Legacy Systems

existing older AIS systems within an organization; usually contracted by programming that is becoming obsolete;

16

Advantages of Legacy Systems

customized to organization
support unique business processes
contain historical data
well understood by staff

17

Disadvantages of Legacy Systems

costly
lack supporting docs
can't run on old hardware
not user-friendly
to difficult to modify
difficult to integrate when acquiring new companies

18

screen scrapers & disadvantage of implantation
(Legacy Systems-not to replace)

front ware that is more user friendly;
disadvantage - may not run as smoothly on old hardware/software

19

enterprise application integration
Legacy systems - not replace)

software/hardware used to integrate software systems into legacy systems

20

Replacement of Legacy Sytems

decision to completely add a new system; benefits must outweigh the costs

21

3 Methods to Improve Legacy Systems

Screenscrapers
Enterprise application integration
replacement of legacy systems

22

Modern Integrated systems

user friendly; use the latest technology

23

Advantages of Purchasing AIS vs Developing AIS

lower cost - can be absorbed b all parts of the company
shorter implementation - companies do not need to design
fewer bugs - sold fully developed and tested

24

2 CPU Architectures that AIS runs on

client-server model
cloud computing

25

Client-Server Computing

two computers on the same network working together to do application processing;

Client (PC) sends request for information needed to the server. The server houses the information needed and sends that information that it is trying to extract back to the client (PC)

Example: Manager wants to know overdue accounts; sends request from PC (client) to server (information is stored) Information is sent back to PC (Client)

26

What are the characteristics of Client Server Systems

client/server systems on same network
systems are integrated
parts of processing is shared btw client/server
client is used in processing the data

27

Tasks Assigned to Client/Server

Client - edit subsets of data; present in user friendly way
server - manage large database and extracting data from data base

28

Cloud Computing

virtual server; data is stored by a third party where client has access to it

Example: Itunes - when you purchased a song, it was downloaded to your iPhone; Now it is stored on an Apple Server and iPhone/computer has access to the songs.

29

Advantages of Cloud Computing

access information from virtually anywhere
no need for extra software/hardware
reduced costs
scalability
expanded access
Infrastructure is reduced

30

Software as a Service (SaaS)

software in the cloud-pays a fee