Accounting Information Systems test bank with
100% pass rate.
Data
facts that are collected, recorded, stored, and processed by an information system
Information
data that has been organized and processed to provide meaning and improve decision making
process
Characteristics of Useful Information
1 Relevant
2 Reliable
3 Complete
4 Timely
5 Understandable
6 Verifiable
7 Accessible
Relevant
Reduces uncertainty, improves decision making, or confirms or corrects prior expectations
Reliable
Free from error or bias; accurately represents organization events or activities
Complete
Does not omit important aspects of the events or activities it measures
Timely
Provided in time for decision makers to make decisions
Understandable
Presented in a useful and intelligible format
Verifiable
Two independent, knowledgeable people produce the same information
,Accessible
Available to users when they need it and in a format they can use
Revenue Cycle
where goods and services are sold for cash or a future promise to receive cash
Expenditure Cycle
where companies purchase inventory for resale or raw materials to use in producing products in
exchange for cash or a future promise to pay cash
Production/Conversion Cycle
where raw materials are transformed into finished goods
Human Resources/Payroll Cycle
where employees are hired, trained, compensated, evaluated, promoted and terminated
Financing Cycle
where companies sell shares in the company to investors and borrow money, and where
investors are paid dividends and interest is paid on loans
Primary Activities in Value Chain
1 Inbound Logistics
2 Operations
3 Outbound Logistics
4 Marketing and Sales
5 Service
Inbound Logistics
consists if receiving, storing , and distributing the materials an organization uses to create the
services and products it sells
Operations
activities transform inputs into final products or services
Outbound Logistics
activities distribute finished products or services to customers
Marketing and Sales
, activities help customers buy the organization's products or services
Service
activities provide post-sale support to customers
Support Activities of Value Chain
1 Firm Infrastructure
2 HR
3 Technology
4 Purchasing
Firm Infrastructure
accounting, finance, legal, and general administrative activities that allow an organization to
function
Human Resources
activities include recruiting, hiring, training, and compensating employees
Technology
activities improve a product or service
Purchasing
activities procure raw materials, supplies, machinery, and the buildings used to carry out the
primary activities
Four operations of Data Processing Cycle
1 Data Input
2 Data Storage
3 Data Processing
4 Information Output
*Users are also involved in entire process
Two steps in Data Input
1 Capture transaction data (each activity, resource affected, and people participating)
2 Verify captured data are accurate and complete
Source Documents
Documents used to capture transaction data at its source - when the transaction takes place
100% pass rate.
Data
facts that are collected, recorded, stored, and processed by an information system
Information
data that has been organized and processed to provide meaning and improve decision making
process
Characteristics of Useful Information
1 Relevant
2 Reliable
3 Complete
4 Timely
5 Understandable
6 Verifiable
7 Accessible
Relevant
Reduces uncertainty, improves decision making, or confirms or corrects prior expectations
Reliable
Free from error or bias; accurately represents organization events or activities
Complete
Does not omit important aspects of the events or activities it measures
Timely
Provided in time for decision makers to make decisions
Understandable
Presented in a useful and intelligible format
Verifiable
Two independent, knowledgeable people produce the same information
,Accessible
Available to users when they need it and in a format they can use
Revenue Cycle
where goods and services are sold for cash or a future promise to receive cash
Expenditure Cycle
where companies purchase inventory for resale or raw materials to use in producing products in
exchange for cash or a future promise to pay cash
Production/Conversion Cycle
where raw materials are transformed into finished goods
Human Resources/Payroll Cycle
where employees are hired, trained, compensated, evaluated, promoted and terminated
Financing Cycle
where companies sell shares in the company to investors and borrow money, and where
investors are paid dividends and interest is paid on loans
Primary Activities in Value Chain
1 Inbound Logistics
2 Operations
3 Outbound Logistics
4 Marketing and Sales
5 Service
Inbound Logistics
consists if receiving, storing , and distributing the materials an organization uses to create the
services and products it sells
Operations
activities transform inputs into final products or services
Outbound Logistics
activities distribute finished products or services to customers
Marketing and Sales
, activities help customers buy the organization's products or services
Service
activities provide post-sale support to customers
Support Activities of Value Chain
1 Firm Infrastructure
2 HR
3 Technology
4 Purchasing
Firm Infrastructure
accounting, finance, legal, and general administrative activities that allow an organization to
function
Human Resources
activities include recruiting, hiring, training, and compensating employees
Technology
activities improve a product or service
Purchasing
activities procure raw materials, supplies, machinery, and the buildings used to carry out the
primary activities
Four operations of Data Processing Cycle
1 Data Input
2 Data Storage
3 Data Processing
4 Information Output
*Users are also involved in entire process
Two steps in Data Input
1 Capture transaction data (each activity, resource affected, and people participating)
2 Verify captured data are accurate and complete
Source Documents
Documents used to capture transaction data at its source - when the transaction takes place
