Chapter 1 (The Information System) Flashcards Preview

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Flashcards in Chapter 1 (The Information System) Deck (51)
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1

supports operations level tasks with highly detailed information about the business transactions that have occurred (sale, shipment of goods, use of labor and material, and transfer of resources)

horizontal flow of information

2

information down from senior management to through to operations and back up from operations to senior management

vertical flow

3

product-oriented work of the business (manufacturing, sales, distribution, billing)

operations

4

controlling day to day operations

operations management

5

short term planning and coordination of activities

middel management

6

longer term planning and setting organizational objectives

top management

7

Three fundamental objectives common to all organizations are:

1. support stewardship function of management
2. support management decision making
3. support day by day operations

8

manager's responsibility to properly manage the resources of the firm and to report on their activities

stewardship

9

set of formal procedures by which data is collected, stored and processing into information & distributed to users

information system

10

___ processes non-financial transactions that are not normally part of the ___:

For example:
- capital budgeting
- product analysis
- delivery scheduling
- employee benefits

MIS; AIS

11

The ___ accepts inputs known as ___ that are processed and turned into ___.

IS; transactions; information

12

an event that affects or is of interest to the organization and is processed by its information system as a unit of work.

transaction

13

economic events that effect the assets and equities of the organization is reflected in its accounts and is measured in monetary terms

financial transactions

14

- paying for products
- paying for service
- buy inventory
- all have debits and credits
- purchase of an airline ticket
- sale of a textbook

financial transaction

15

- wanting your new name on your diploma
- changing address
- adding a new customer
- changing a customer's address

non-financial transactions

16

all other events processed by the organization's information system

non-financial transactions

17

subsystem of the IS that processes financial transactions and non financial transactions that directly effect the processing of financial transactions

AIS

18

What are the three subsystems of the AIS:

1. transactions processing Subsystem
2. general ledger/financial reporting subsystem
3. management reporting system

19

supports daily business operations
Converts economic events into financial transactions, records financial transactions in the accounting records and distributed essential financial information to operations personnel to support daily activity.
Revenue cycle, expenditure cycle, and conversion cycle

transactions processing Subsystem

20

creation of the traditional financial statements
Input into the GL/FRS system is from the transaction system
Summarizes transactions and accounts for non-frequent transactions
FRS generates the output financial statements
FRS focuses on non-discretionary reporting due to the fact that the format and information is generally defined by GAAP, IRS, etc.

general ledger/financial reporting subsystem

21

special purpose reports used to make decisions
discretionary reporting
Aids in the decision making of management
Budgets, variance analysis, cost reports, trends, etc.

management reporting system

22

- Focus on financial reporting information
- Focus on processes and procedures that impact financial reports and information
- Controls around AIS

Sarbanes-Oxley

23

- facts
- may or may not be processed
- have no direct effect on user's actions

data

24

causes the user to take actions

information

25

financial transactions that enter the information system from internal and external sources.

data sources

26

the most common source of data for most organizations.

external financial transactions

27

involve the exchange or movement of resources within the organization.

internal financial transactions

28

example:
sale of goods and services, purchase of inventory, receipt of cash, and disbursement of cash (including payroll)

external

29

example:
movement of raw materials into work-in-process (WIP), application of labor and overhead to WIP, transfer of WIP into finished goods inventory, and depreciation of equipment

internal

30

Functions for transforming data into information according to the general AIS model:

1. Data Collection
2. Data Processing
3. Data Management
4. Information Generation