19.1 Accounting Information Systems Flashcards
Which of the following is a primary function of a database management system (DBMS)?
A. Report customization
B. Capability to create and modify the database
C. Financial transactions input
D. Database access authorizations
B. Capability to create and modify the database
Define an accounting information system (AIS) and explain the role of the AIS in the value chain
An AIS is a subsystem of a management information system (MIS). The AIS processes routine, highly structured financial and transaction data relevant to financial accounting as well as managerial accounting.
AIS includes:
- General ledger/financial reporting system (GL, FRS)
- Management reporting system (MRS)
- Transaction processing system (TPS)
An information system is an essential part of a company’s value chain. The AIS facilities keeping track of the costs of the activities that create the entity’s product or service and the revenues from selling the products and/or providing the services.
Define enterprise performance management (EPM)
EPM, also known as corporate performance management or business management) is enterprise software that helps organization link their strategies to their plans and execution. EPM software is an integrated combination of budgeting, accounting, financial reporting, and performance analysis system.
Describe a database and a database management system
A database is an organized collection of data in a computer system. Data in the database are integrated to eliminate redundancy of data items. A single integrated system allows for improved data accessibility.
A database management system (DMBS) is an integrated set of computer programs that create the database, maintain the elements in the database, safeguard the data from loss or destruction, and make the data available to applications, programs, and inquiries.
Which one of the following statements about an accounting information system (AIS) is false?
A. An AIS supports day-to-day operations by collecting and sorting data about an organization’s transactions.
B. The information produced by an AIS is made available to all levels of management for use in planning and controlling an organization’s activities.
C. An AIS is best suited to solve problems when there is great uncertainty and ill-defined reporting requirements.
D. An AIS is often referred to as a transaction processing system.
C. An AIS is best suited to solve problems when there is great uncertainty and ill-defined reporting requirements.
An AIS is a subsystem of a management information system that processes routine financial and transactional data relevant to managerial and financial accounting. The AIS supports operations by collecting and sorting data about transactions. An AIS is concerned not only with external parties, but also with the internal activities needed for management decision making at all levels. An AIS is best suited to solve problems when reporting requirements are well-defined. A decision support system is a better choice for problems in which decision making is less structured.
In an inventory system on a database management system (DBMS), one stored record contains part number, part name, part color, and part weight. These individual items are called
A. Fields.
B. Stored files.
C. Bytes.
D. Occurrences.
A. Fields
A record is a collection of related data items (fields). A field (data item) is a group of characters representing one unit of information
Which of the following is a primary function of a database management system (DBMS)?
A. Report customization.
B. Capability to create and modify the database.
C. Financial transactions input.
D. Database access authorizations.
B. Capability to create and modify the database.
A database management system (DBMS) is an integrated set of software tools superimposed on the data files that helps maintain the integrity of the underlying database. It allows programmers and designers to work independently of the physical and logical structure of the database. With a DBMS, the physical structure of the database can be completely altered without having to change any of the programs using the data items.
How is an accounting information system (AIS) distinguished from a management information system (MIS)?
A. An AIS deals with financial information; a MIS handles all other information.
B. An AIS may be either manual or computer based; a MIS is computer based.
C. An AIS is a subsystem within a MIS.
D. An AIS is control oriented; a MIS is used exclusively for planning.
C. An AIS is a subsystem within a MIS.
An information system transforms raw data into knowledge useful for decision making. A MIS provides information for management decisions. An AIS is a subsystem of a MIS and processes financial and transactional data relevant to managerial decisions as well as financial accounting.
Which of the following terms best describes a payroll system?
A. Database management system (DBMS).
B. Transaction processing system (TPS).
C. Decision support system (DSS).
D. Enterprise resource planning (ERP) system.
B. Transaction processing system (TPS)
Information system that support routine processes in an organization include, among others, the transaction processing system (TPS). A transaction is a single, discrete event that can be captured by an information system. A TPS therefore captures the fundamental data that reflect the economic life of an organization. A payroll system is one of the most routine processes necessary to conduct the organization’s business.
The primary purpose of a database system is to have a single storage location for each
A. File
B. Record
C. Database
D. Item of data
D. Item of data
Database allow companies to save data (information) in one place instead of having hundreds of specific files with similar data.
Which one of the following features is least likely to apply to the transaction processing cycle of an accounting information system?
A. Data records are chiefly historical in nature
B. Most of the sources of data are on organization’s recurring transactions
C. Data are usually financial in nature
D. Data records are the basis of predictive system
D. Date records are the basis of predictive systems
An AIS is a subsystem of a management information system that processes financial and transactional data relevant to managerial and financial accounting. The AIS supports operations by collecting and sorting historical data about an organization’s transactions. An AIS is concerned not only with external parties but also with the internal activities needed for management decision making at all levels. An AIS is best suited to solve problems when reporting requirements are well defined. An AIS does not typically use records based on predictive system, which would be a feature of a decision support system.
Which one of the following distinguishes a management information system from a transaction processing system?
A. Maintenance of a structured database
B. Capability to provide data for decision-making support
C. Automation of routine transaction processing
D. Production of reports to support operations
B. Capability to provide data for decision-making support
A management information system (MIS) provides managers with the information they need for analysis, planning, control, and decision making. A transaction processing system (TPS) supports the ongoing routine operations of an organization.
One advantage of a database management system (DMBS) is
A. Each organizational unit takes responsibility and control for its own data.
B. The cost of the data processing department decreases as users are now responsible for establishing their own data handling techniques.
C. A decreased vulnerability as the database management system has numerous security controls to prevent disasters.
D. The independence of the data from the application programs, which allows the programs to be developed for the user’s specific needs without concern for data capture problems.
D. The independence of the data from the application programs, which allows the programs to be developed for the user’s specific needs without concern for data capture problems.
A fundamental characteristic of database is that applications are independent of the database structure; when writing programs or designing applications to use the database, only the name of the desired item is necessary. Programs can be developed for the user’s specific needs without concern for data capture problems. Reference can be made to the items using the data manipulation language, after which the DBMS takes care of locating and retrieving the desired items. The physical or logical structure of the database can be completely altered without having to change any of the programs using the data items. Only the schema requires alteration.
Management information systems represent a significant investment by most businesses. A primary concern of management is that the system
A. Meet the business needs of the organization.
B. Employ the latest technology.
C. Might consume too much time and money during testing.
D. Was designed using CASE (Computer-Aided Software Engineering) tools rather than traditional methods.
A. Meet the business needs of the organization
A management information system (MIS) provides information for management decisions. The MIS must meet the needs of the organization or the cost will exceed any benefit to a business.
A database is
A. Essential for the storage of large data sets.
B. A collection of related files.
C. A real-time system.
D. A network of computer terminals.
B. A collection of related files
The use of a database system significantly reduces redundancy of stored data in a system. Data in a standardized form are ideally entered once into integrated files and then used for any and all related applications. The database is usually built to serve multiple applications. Consequently, the data are independent of particular applications and greater flexibility in meeting unanticipated demands is possible. The database approach also allows for better access by user and for more rapid updating of information.
