Organisational Information Structures

Question 1

Explain five benefits of computerisation of accounting information and processing systems

Answer 1

1. Quick processing of transactions 2. Input of some transactions is automated 3.Reduced amount of errors 4. Provides labour cost benefits 5. Provide high quality management information

Question 2

Explain any two ways in which in which the computerised accounting systems has changed the nature of the work accountants do

Answer 2

1. Routine accounting work can be done more quickly with automated processing. 2. The change means accountants can spend more time on different types of work, such as providing information and giving financial advise to senior management.

Question 3

Accounting information systems

Answer 3

1. Financial accounting systems 2. Cost accounting systems 3. Payroll accounting systems 4. Tax accounting system

Question 4

Information systems

Answer 4

1. Transaction processing system 2. Office automation system. 3. A management information system. 4. Decision support system 5. Executive information system

Question 5

Office automation system

Answer 5

Automated aspects of office work that might otherwise have to be done manually. Microsoft office, automated emails, accountancy software

Question 6

Transaction processing system

Answer 6

Used for processing of routine tasks or transactions for a particular aspect of operation. Eg. Sales ordering system, accounting system, inventory control system

Question 7

Management information system

Answer 7

Provides information to management from sources within the organisation, management can then use information to make decisions. Information obtained from TPS. Eg system used to produce income statements and maybe extracted from a database

Question 8

Executive information system

Answer 8

A system used by senior executives to access information or data that may help them with their work. It strategic, or high level. Comes from both internal and external sources.

Question 9

Batch processing

Answer 9

A large number of transactions are processed at the same time(in a batch)

Question 10

Online processing

Answer 10

Transactions are input into the computer system from a users terminal(using screen, keyboard and mouse) and input is done at a convenient time, without first of all gathering them into batches

Question 11

Real time processing

Answer 11

Similar to online processing, but means that the processing of data is carried out very quickly so that near instantaneous output is carried out. Usually use data instead of human input

Question 12

Advantages of batch processing

Answer 12

1. Control over error detection 2. It is economical, cheap and efficient way of processing data 3.Leaves an audit trail

Question 13

Disadvantages of batch processing

Answer 13

1. Master file not up to date 2. Volume of data maybe low and batch processing might not be justified. 3. Source documents can go missing 4. Out of date information means wrong decisions 4. Strike will worsen delays . 6. Overloads the machine

Question 14

Explain any two ways in which in which the computerised accounting systems has changed the nature of the work accountants do

Answer 14

1. Routine accounting work can be done more quickly with automated processing. 2. The change means accountants can spend more time on different types of work, such as providing information and giving financial advise to senior management.

Question 15

Accounting information systems

Answer 15

1. Financial accounting systems 2. Cost accounting systems 3. Payroll accounting systems 4. Tax accounting system

Question 16

Information systems

Answer 16

1. Transaction processing system 2. Office automation system. 3. A management information system. 4. Decision support system 5. Executive information system

Question 17

Office automation system

Answer 17

Automated aspects of office work that might otherwise have to be done manually. Microsoft office, automated emails, accountancy software

Question 18

Transaction processing system

Answer 18

Used for processing of routine tasks or transactions for a particular aspect of operation. Eg. Sales ordering system, accounting system, inventory control system

Question 19

Management information system

Answer 19

Provides information to management from sources within the organisation, management can then use information to make decisions. Information obtained from TPS. Eg system used to produce income statements and maybe extracted from a database

Question 20

Executive information system

Answer 20

A system used by senior executives to access information or data that may help them with their work. It strategic, or high level. Comes from both internal and external sources.

Question 21

Batch processing

Answer 21

A large number of transactions are processed at the same time(in a batch)

Question 22

Online processing

Answer 22

Transactions are input into the computer system from a users terminal(using screen, keyboard and mouse) and input is done at a convenient time, without first of all gathering them into batches

Question 23

Real time processing

Answer 23

Similar to online processing, but means that the processing of data is carried out very quickly so that near instantaneous output is carried out. Usually use data instead of human input

Question 24

Advantages of batch processing

Answer 24

1. Control over error detection 2. It is economical, cheap and efficient way of processing data 3.Leaves an audit trail

Question 25

Disadvantages of batch processing

Answer 25

1. Master file not up to date 2. Volume of data maybe low and batch processing might not be justified. 3. Source documents can go missing 4. Out of date information means wrong decisions 4. Strike will worsen delays . 6. Overloads the machine

Question 26

Client server network

Answer 26

This is a network structure in which terminals or work stations are linked to one or more server computers.

Question 27

Information technology infrastructure

Answer 27

Refers to all hardware, software, databases, telecommunications, people and procedures that are configured to collect, manipulate, store and process data resources into information products

Question 28

Information system

Answer 28

Used resources of people, hardware, software, data, and networks to perform input, processing, output, storage and control activities. It is the way information management

Question 29

Hardware

Answer 29

Computer, it peripherals and consumables such as stationary

Question 30

Software

Answer 30

Programs running on these computers

Question 31

Roles of information systems

Answer 31

Planning, controlling, recording transactions, performance measurement, decision making

Question 32

Operations support system

Answer 32

TPS, OAS, KWS

Question 33

Management support systems

Answer 33

DSS, MIS, EIS

Question 34

Direction of communication

Answer 34

Vertical, Horizontal or lateral and diagonal

Question 35

Formal communication channels

Answer 35

Targets, budgets, decisions, policies and procedures. These are closely specified and often require authorisation

Question 36

Informal communication channel

Answer 36

Questioning a managers decision, not as per system, gossip and rumour. This is basically unofficial communication

Question 37

Internal communication

Answer 37

Communication taking place within an organisation while external communication goes outside of the organisation

Question 38

Data

Answer 38

Consists of raw, unprocessed facts and figures

Question 39

Information

Answer 39

Data that has been processed in such a way that it is meaningful for planning or decision making

Question 40

Internal data and information

Answer 40

Accounting records, personnel records, production data, timesheets, informal data and information gathering

Question 41

Qualities of information

Answer 41

Accurate, Cost effective, complete, understandable, relevant, accessible, timely, easy to use

Question 42

Define a computer

Answer 42

An electronic device which will accept data, process it and store or output the results

Question 43

Types of computers

Answer 43

Supercomputers, mainframe computers, mini computer, microcomputer(personal computer), laptops, tablets and file server

Question 44

What us RAM

Answer 44

Random Accesss Memory is memory that is directly available to the processing unit. Holds data and programs in current use

Question 45

MICR - Magnetic Ink Character Recognition

Answer 45

This involves the recognition by a machine of special formatted characters printed in magnetic ink. Advantage include speed and accuracy. Used in banking industry on cheques and deposit slip

Question 46

OMR - Optical Mark Reading

Answer 46

Involves marking of a preprinted form with a ball pint pen it typed line or across in an appropriate box. Used in marking mcq and market.

Question 47

Scanner

Answer 47

Device that can read text or illustrations printed on paper and translate the information into a form the computer can use.

Question 48

Database

Answer 48

A file of data, or files of inter related data, that is structured and designed in such a way that many different processing applications can use the same data and update it

Question 49

DBMS - Database Management System

Answer 49

Set of programs that manages the database. It deals with all aspects access, maintenance and security of data

Question 50

Advantages of database

Answer 50

Less duplication, less processing, easy updating, data consistency, improving access to data, formal control of data.

Question 51

What is ERP System

Answer 51

This is a modular software packages designed to intergrate the key processes in an organisation so that a single system can serve the information needs of all functional areas

Question 52

Data warehouse

Answer 52

Consists of a database, containing data from various operational systems, and reporting and query tools also known as big data

Question 53

Data Mining

Answer 53

This is an analytic process designed to explore data in search of consistent patterns and/or systematic relationships between variables, and then validate the findings by applying the detected patterns to new subsets of data