ACC 409 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
What is a system?
A framework of interacting parts that work together to achieve an objective
What is a system problem?
When the system objective is not being met.
What is an AIS?
Accounting Information System: a system that involves a framework of people,
processes, technologies, and controls that work together to provide information needed
to operate effectively and efficiently, make sounds decisions, and file necessary reports
accurately and on a timely basis.
The Components of an AIS
People, Processes, Technologies, Controls
People Component of AIS
Human beings who perform tasks involved in collecting, processing, tracking, and
reporting accounting information.
Processes Component of AIS
The tasks that people perform to get things done in an organization
Technologies Component of AIS
The things (manual or electronic) used to produce accounting information.
Controls Component of AIS
, Procedures used to reduce the likelihood that something will go wrong.
Difference between data and information
Data is raw unorganized facts. Information is organized facts.
Types of Data
Quantitative and Qualitative
Quantitative Data
Data that have a numerical value
Qualitative Data
Data that have a non-numerical value
Characteristics of Useful Information
Relevant, Reliable, Timely, Complete, Understandable
Relevant Characteristics of Useful Information
Characteristic of useful information that reduces uncertainty
Reliable Characteristics of Useful Information
Characteristic of useful information that is free of error or bias
Timely Characteristics of Useful Information
Characteristic of useful information where information is in time to affect decisions
Complete Characteristics of Useful Information
Characteristic of useful information that includes all relevant data
Understandable Characteristics of Useful Information
Characteristic of useful information that is intelligible to the user
Determination of Value of Information
Benefits of information minus the cost of information
COMPLETE SOLUTIONS GRADED A++
What is a system?
A framework of interacting parts that work together to achieve an objective
What is a system problem?
When the system objective is not being met.
What is an AIS?
Accounting Information System: a system that involves a framework of people,
processes, technologies, and controls that work together to provide information needed
to operate effectively and efficiently, make sounds decisions, and file necessary reports
accurately and on a timely basis.
The Components of an AIS
People, Processes, Technologies, Controls
People Component of AIS
Human beings who perform tasks involved in collecting, processing, tracking, and
reporting accounting information.
Processes Component of AIS
The tasks that people perform to get things done in an organization
Technologies Component of AIS
The things (manual or electronic) used to produce accounting information.
Controls Component of AIS
, Procedures used to reduce the likelihood that something will go wrong.
Difference between data and information
Data is raw unorganized facts. Information is organized facts.
Types of Data
Quantitative and Qualitative
Quantitative Data
Data that have a numerical value
Qualitative Data
Data that have a non-numerical value
Characteristics of Useful Information
Relevant, Reliable, Timely, Complete, Understandable
Relevant Characteristics of Useful Information
Characteristic of useful information that reduces uncertainty
Reliable Characteristics of Useful Information
Characteristic of useful information that is free of error or bias
Timely Characteristics of Useful Information
Characteristic of useful information where information is in time to affect decisions
Complete Characteristics of Useful Information
Characteristic of useful information that includes all relevant data
Understandable Characteristics of Useful Information
Characteristic of useful information that is intelligible to the user
Determination of Value of Information
Benefits of information minus the cost of information
