1. Accounting Information System Flashcards
Distinguish between data and information
Data are just random values, but when the data are organized in a understandable way, it is considered information. Information gives a better decisionsground.
When does information have value?
Information has value when the added value outweigh the cost of acquiring, storing and maintaining the information.
Describe the seven characteristics that make information useful
Relevant, reliable, complete, timely, understandable, verifiable and accessible.
An organization use business processes to get things done, mention the four business proces?
A business process is a set of related coordinated and structured activities and tasks a business make –> revenue, expenditure, production, payroll and financing cycles
Does AIS add value to the organization?
Yes
Explain decision quality
Information can give a better decisions quality.
Too much information can cause information overload and cause a negativ impact on the decision.
What is an AIS
AIS is a system that collects, records, stores, and processes data to produce information for decision makers.
It consist of people who uses the system, processes, technology (data, software, IT) and controls to safeguard information.
Explain the connection between AIS and Corporate Strategy
An AIS is influenced by an organization’s strategy.
A strategy is how to meet the overall “goal” the organization hopes to achieve.
Once an overall goal is determined, an organization can determine actions needed to reach their goal and identify the informational requirements (both financial and nonfinancial) necessary to measure how well they are doing in obtaining that goal.
