AIS 1

Question 1

Internal Information flows that are used primarily at the operations level to capture transaction and operations data​

Answer 1

Horizontal flows of information

Question 2

Vertical flows of information​ : instructions, quotas, and budgets​

Answer 2

downward flows

Question 3

Vertical flows of information​: aggregated transaction and operations data​

Answer 3

upward flows

Question 4

is a business resource that:​

needs to be appropriately managed​

is vital to the survival of contemporary businesses​

Answer 4

Information

Question 5

A group of interrelated multiple components or subsystems that serve a common purpose​

Answer 5

System

Question 6

is called a subsystem when it is viewed as a component of a larger system.​

Answer 6

System

Question 7

is considered a system when it is the focus of attention.​

Answer 7

subsystem

Question 8

the process of dividing the system into smaller subsystem parts​

Answer 8

System Decomposition ​

Question 9

distinct parts are not self-contained ​

they are reliant upon the functioning of the other parts of the system ​

all distinct parts must be functioning or the system will fail​

Answer 9

System Interdependency ​

Question 10

is the set of formal procedures by which data are collected, processed into information, and distributed to users.​

Answer 10

Information System

Question 11

is a business event

Answer 11

transaction

Question 12

economic events that affect the assets and equities of the organization ​

e.g., purchase of an airline ticket​

Answer 12

Financial transactions ​

Question 12

all other events processed by the organization’s information system ​

e.g., an airline reservation — no commitment by the customer​

Answer 12

Nonfinancial transactions​

Question 13

Accounting an information system.​

It identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies.​

Answer 13

Accounting Information Systems

Question 14

It captures and records the financial effects of the firm’s transactions.​

It distributes transaction information to operations personnel to coordinate many key tasks.​

Answer 14

Accounting Information Systems

Question 15

process ​

financial transactions; e.g., sale of goods ​

and nonfinancial transactions that directly affect the processing of financial transactions; e.g., addition of newly approved vendors​

Answer 15

Accounting Information Systems (AIS)

Question 16

process ​

nonfinancial transactions that are not normally processed by traditional AIS; e.g., tracking customer complaints​

Answer 16

Management Information Systems (MIS)

Question 17

AIS Subsystems that supports daily business operations​

Answer 17

Transaction processing system (TPS)​

Question 18

AIS Subsystems​ that produces financial statements and reports​

Answer 18

General Ledger/ Financial Reporting System (GL/FRS)​

Question 19

AIS Subsystems​ that produces special-purpose reports for internal use​

Answer 19

Management Reporting System (MRS

Question 20

are financial transactions that enter the information system from internal and external sources. ​

Answer 20

Data sources

Question 21

are the most common source of data for most organizations.​

E.g., sale of goods and services, purchase of inventory, receipt of cash, and disbursement of cash (including payroll).​

Answer 21

External financial transactions

Question 22

involve the exchange or movement of resources within the organization. ​

E.g., movement of raw materials into work-in-process (WIP), application of labor and overhead to WIP, transfer of WIP into finished goods inventory, and depreciation of equipment

Answer 22

Internal financial transactions

Question 23

Capturing transaction data​

Recording data onto forms​

Validating and editing the data​

Answer 23

Data Collection

Question 24

Classifying​
Transcribing​
Sorting​
Batching​
​Merging​
Calculating​
Summarizing​
Comparing​

Answer 24

Data Processing​

Question 25

Storing​

Retrieving​

Deleting​

Answer 25

Data Management​

Question 26

Compiling​

Arranging​

Formatting​

Presenting​

Answer 26

Information Generation​

Question 27

serves a purpose

Answer 27

Relevance

Question 28

no older than the time period of the action it supports​

Answer 28

Timeliness

Question 29

free from material errors​

Answer 29

Accuracy

Question 30

all information essential to a decision or task is present​

Answer 30

Completeness:

Question 31

aggregated in accordance with the user’s needs​

Answer 31

Summarization

Question 32

____________by business function is a very common method of organizing.​

Answer 32

Segmenting

Question 33

purchasing, receiving and stores​

Answer 33

Inventory/Materials Management

Question 34

production planning, quality control, and maintenance​

Answer 34

Production

Question 35

excessive storage costs of paper documents and/or magnetic form​

Answer 35

Data Storage

Question 36

potential problem of failing to update all affected files​

Answer 36

Currency of Information

Question 37

changes or additions must be performed multiple times​

Answer 37

Data Updating

Question 37

user’s inability to obtain additional information as needs change​

Answer 37

Task-Data Dependency

Question 38

separate files are difficult to integrate across multiple users​

Answer 38

Data Integration

Question 39

s an accounting framework for modeling an organization’s ​

economic resources; e.g., assets ​

economic events; i.e., affect changes in resources​

economic agents; i.e., individuals and departments that participate in an economic event ​

Interrelationships among resources, events and agents ​

Answer 39

REA model

Question 40

are often used to model these (REA) relationships.​

Answer 40

Entity-relationship diagrams (ERD)

Question 41

The accounting function is responsible for the

Answer 41

conceptual system

Question 42

while the computer function is responsible for the

Answer 42

physical system.

Question 43

determines the nature of the information required, its sources, its destination, and the accounting rules that must be applied. ​

Answer 43

conceptual system

Question 44

attest to fairness of financial statements​

assurance service: broader in scope than traditional attestation audit​

Answer 44

External Auditors​

Question 45

evaluate IT, often as part of external audit​

Answer 45

IT Auditors​

Question 46

in-house IS and IT appraisal services​

Answer 46

Internal Auditors​