Accounting Information Systems- Ch.1
Save
What is an Information System? - (correct Answer) - Information systems are used to
collect, process, store, and distribute information (which is a business resource).
An information system is the set of formal procedures by which data are collected,
processed into information, and distributed to users.
What is the relation between Information and Data? - (correct Answer) - Information
is data that has been processed so that it is useful to a decision maker ( causing
the user to take action or to not take action). Information is useful if it is
relevant and reliable. Data enters an information system and then turns into
information for users.
What is an Accounting Information System - (correct Answer) - Accounting
information system.s collects and process financial transactions ( ex. sales
purchases and depreciation) and non-financial transactions that directly affect the
processing of financial transactions (ex addition of newly approved vendors and
purchase requisitions). Functions to transform data into information
What is a transaction - (correct Answer) - A transaction is a form of data.
Transactions are financial and non financial business events.
What are two different types of transactions - (correct Answer) - 1. Financial
Transactions- Economic events that affect the assets and equities of the
organization, e.g., purchase of an airline ticket (credit unearned revenue, debit
cash or AR).
2. Nonfinancial transactions- All other events processed by the organization's info
systems, e.g., an airline reservation (no commitment by the customer so should not
credit revenue or unearned revenue, might later generate a purchase); tracking
customer complaints.
What are the subsystems of AIS? Define them. - (correct Answer) - The Subsystems of
AIS are:
1.General Ledger/ Financial Reporting System (GL/FRS)- Produces financial
statements and reports
2. Transaction Processing System (TPS)- Supports daily business operations;
consists of three transaction cycles: ( Revenue, expenditure, conversion).
3. Management Reporting System (MRS)- Produces special-purpose reports for internal
use.
What three transaction cycles are supported by Transaction Processing Systems? -
(correct Answer) - Transaction Processing Systems support daily business
operations.
1. Revenue Cycle
2. Expenditure Cycle
3. Conversion Cycle
Explain the difference between an AIS and an MIS based on the types of transactions
they process - (correct Answer) - Whereas AIS processes financial and nonfinancial
transactions that directly affect the processing of financial transactions... MIS
processes non financial transactions that are not normally process by AIS (tracking
customer complaints).
Explain the difference between an AIS and an MIS based on their subsystems -
(correct Answer) - ASK. MIS Subsystems- Finance, Marketing, Production, HRS,
distribution
Draw the general AIS model - (correct Answer) - See Note book. External sources of
Save
What is an Information System? - (correct Answer) - Information systems are used to
collect, process, store, and distribute information (which is a business resource).
An information system is the set of formal procedures by which data are collected,
processed into information, and distributed to users.
What is the relation between Information and Data? - (correct Answer) - Information
is data that has been processed so that it is useful to a decision maker ( causing
the user to take action or to not take action). Information is useful if it is
relevant and reliable. Data enters an information system and then turns into
information for users.
What is an Accounting Information System - (correct Answer) - Accounting
information system.s collects and process financial transactions ( ex. sales
purchases and depreciation) and non-financial transactions that directly affect the
processing of financial transactions (ex addition of newly approved vendors and
purchase requisitions). Functions to transform data into information
What is a transaction - (correct Answer) - A transaction is a form of data.
Transactions are financial and non financial business events.
What are two different types of transactions - (correct Answer) - 1. Financial
Transactions- Economic events that affect the assets and equities of the
organization, e.g., purchase of an airline ticket (credit unearned revenue, debit
cash or AR).
2. Nonfinancial transactions- All other events processed by the organization's info
systems, e.g., an airline reservation (no commitment by the customer so should not
credit revenue or unearned revenue, might later generate a purchase); tracking
customer complaints.
What are the subsystems of AIS? Define them. - (correct Answer) - The Subsystems of
AIS are:
1.General Ledger/ Financial Reporting System (GL/FRS)- Produces financial
statements and reports
2. Transaction Processing System (TPS)- Supports daily business operations;
consists of three transaction cycles: ( Revenue, expenditure, conversion).
3. Management Reporting System (MRS)- Produces special-purpose reports for internal
use.
What three transaction cycles are supported by Transaction Processing Systems? -
(correct Answer) - Transaction Processing Systems support daily business
operations.
1. Revenue Cycle
2. Expenditure Cycle
3. Conversion Cycle
Explain the difference between an AIS and an MIS based on the types of transactions
they process - (correct Answer) - Whereas AIS processes financial and nonfinancial
transactions that directly affect the processing of financial transactions... MIS
processes non financial transactions that are not normally process by AIS (tracking
customer complaints).
Explain the difference between an AIS and an MIS based on their subsystems -
(correct Answer) - ASK. MIS Subsystems- Finance, Marketing, Production, HRS,
distribution
Draw the general AIS model - (correct Answer) - See Note book. External sources of
