AIS Exam 2025 With 100% Correct
Answers
What is information? - CORRECT ANSWER✔✔Data presented in a form that is useful in a
decision-making activity.
How is information different than data? - CORRECT ANSWER✔✔Information always contributes
to the decision making process, data does not necessarily do the same.
what is the broad view of the study of AIS? - CORRECT ANSWER✔✔The study of AIS considers
all business functions and how they are integrated. Involves people, technology, and
communication.
What are the various 'qualities' of information? - CORRECT ANSWER✔✔Understandability,
relevance, timeliness, predictive/feedback value, verifiability, neutrality, comparability, validity,
accuracy and completeness.
What is a system? - CORRECT ANSWER✔✔A set of interdependent elements that together
accomplish specific objectives.
What is an information system? - CORRECT ANSWER✔✔A man-made system that generally
consist of an integrated set of computer based components and manual components
established to collect, store, and manage data and to provide output information to users.
What is an accounting information system? - CORRECT ANSWER✔✔A specialized subsystem of
the IS that collects, processes, and reports information related to the financial aspects of
business events.
, What is the functional model of an information system in Figure 1.5? - CORRECT
ANSWER✔✔The functional model describes how data is processed into information. This model
is cyclical and allows users to input data which is either stored or processed into output data.
The output data tells the user more information which can then be processed again.
What are the two main functions of IS in businesses? - CORRECT ANSWER✔✔Facilitate
operational functions and support management decision making.
What are horizontal information flows versus vertical information flows? - CORRECT
ANSWER✔✔Horizontal information flow relates to specific business events (scope, detailed,
accurate, and internal information). Vertical information flow relates to the summarized and
tailored version of horizontal information that is useful to operations management personnel.
How do horizontal information flows and vertical information flows each support the two main
functions of IS in businesses? - CORRECT ANSWER✔✔HIF facilitates operational functions and
VIF support management decision making.
What are the different levels of management decision making? - CORRECT ANSWER✔✔In order
from structured decision making to unstructured, the different levels of management decision
making are operations management, tactical and strategic. Know it regards the vertical
information flow.
What are structured versus unstructured decisions? - CORRECT ANSWER✔✔Structured
decisions are routine and have automated decisions and unstructured decisions are case-by-
case and are neither routine nor repetitive.
What three roles do accountants have in relation to IS? - CORRECT ANSWER✔✔Accountants can
be designers (make the AIS), users (oversee implementation of AIS), and auditors (assure
reliability of AIS).
What is a value chain? - CORRECT ANSWER✔✔A chain of activities performed by the
organization to transform inputs into outputs valued by the customer.
Answers
What is information? - CORRECT ANSWER✔✔Data presented in a form that is useful in a
decision-making activity.
How is information different than data? - CORRECT ANSWER✔✔Information always contributes
to the decision making process, data does not necessarily do the same.
what is the broad view of the study of AIS? - CORRECT ANSWER✔✔The study of AIS considers
all business functions and how they are integrated. Involves people, technology, and
communication.
What are the various 'qualities' of information? - CORRECT ANSWER✔✔Understandability,
relevance, timeliness, predictive/feedback value, verifiability, neutrality, comparability, validity,
accuracy and completeness.
What is a system? - CORRECT ANSWER✔✔A set of interdependent elements that together
accomplish specific objectives.
What is an information system? - CORRECT ANSWER✔✔A man-made system that generally
consist of an integrated set of computer based components and manual components
established to collect, store, and manage data and to provide output information to users.
What is an accounting information system? - CORRECT ANSWER✔✔A specialized subsystem of
the IS that collects, processes, and reports information related to the financial aspects of
business events.
, What is the functional model of an information system in Figure 1.5? - CORRECT
ANSWER✔✔The functional model describes how data is processed into information. This model
is cyclical and allows users to input data which is either stored or processed into output data.
The output data tells the user more information which can then be processed again.
What are the two main functions of IS in businesses? - CORRECT ANSWER✔✔Facilitate
operational functions and support management decision making.
What are horizontal information flows versus vertical information flows? - CORRECT
ANSWER✔✔Horizontal information flow relates to specific business events (scope, detailed,
accurate, and internal information). Vertical information flow relates to the summarized and
tailored version of horizontal information that is useful to operations management personnel.
How do horizontal information flows and vertical information flows each support the two main
functions of IS in businesses? - CORRECT ANSWER✔✔HIF facilitates operational functions and
VIF support management decision making.
What are the different levels of management decision making? - CORRECT ANSWER✔✔In order
from structured decision making to unstructured, the different levels of management decision
making are operations management, tactical and strategic. Know it regards the vertical
information flow.
What are structured versus unstructured decisions? - CORRECT ANSWER✔✔Structured
decisions are routine and have automated decisions and unstructured decisions are case-by-
case and are neither routine nor repetitive.
What three roles do accountants have in relation to IS? - CORRECT ANSWER✔✔Accountants can
be designers (make the AIS), users (oversee implementation of AIS), and auditors (assure
reliability of AIS).
What is a value chain? - CORRECT ANSWER✔✔A chain of activities performed by the
organization to transform inputs into outputs valued by the customer.
