Chapter 1 Accounting Information Systems Flashcards
(49 cards)
What is a system?
A set of two or more interrelated components interacting to achieve a goal.
What is goal conflict?
Occurs when components act in their own interest without regard for the overall goal.
What is goal congruence?
Occurs when components acting in their own interest contribute toward the overall goal.
What is data?
Facts that are collected, recorded, stored, and processed by a system.
What is information?
Data that have been organized and processed to provide meaning and improve decision-making.
What is information overload?
Exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision-making quality.
What is information technology?
The computers and other electronic devices used to store, retrieve, transmit, and manipulate data.
What is the value of information?
It is the benefit produced by the information minus the cost of producing it.
What are the benefits of information?
Reduce uncertainty, improve decisions, improve planning, improve scheduling.
What are the characteristics of useful information?
Relevant, Reliable, Complete, Timely, Understandable, Verifiable, Accessible.
What is a business process?
A set of related, coordinated, and structured activities and tasks that help accomplish a specific organizational goal.
What is a transaction?
An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms.
What is transaction processing?
Process of capturing transaction data, processing it, storing it for later use, and producing information output.
What is a give-get exchange?
Transactions that happen frequently, such as giving up cash to get inventory from a supplier.
What are the major business processes of transaction cycles?
Revenue cycle, expenditure cycle, production cycle, human resources/payroll cycle, financing cycle.
What is an accounting information system (AIS)?
A system that collects, records, stores, and processes data to produce information for decision makers.
What are the six components of AIS?
People, procedures, data, software, IT infrastructure, internal controls.
What are the business functions of AIS?
Collect and store data, transform data into information, provide adequate controls.
How can a well-designed AIS add value to an organization?
Improving quality, reducing costs, improving efficiency, sharing knowledge, improving internal control, improving decision making.
How can AIS help improve decision making?
Identify situations requiring action, reduce uncertainty, store information for feedback, provide timely information.
What are the roles of AIS in the value chain?
Inbound logistics, operations, outbound logistics, marketing and sales, service activities.
What are support activities in a business?
Firm infrastructure, human resources, technology activities, purchasing activities.
What is the data processing cycle?
The four operations performed on data to generate meaningful information: data input, data storage, data processing, information output.
What is data input?
The first step in processing input, capturing transaction data and entering them into the system.
