AIS 2

Question 1

an economic event that affects the assets and equities of the firm, is reflected in its accounts, and is measured in monetary terms

Answer 1

Financial Transaction

Question 2

time lag between the two due to credit relations with suppliers:​

Answer 2

Expenditure Cycle

Question 3

(acquisition of goods)​

Answer 3

physical component

Question 4

(cash disbursements to the supplier)​

Answer 4

financial component

Question 5

(planning, scheduling, and control of the physical product through the manufacturing process)​

Answer 5

the production system

Question 6

(monitors the flow of cost information related to production)​

Answer 6

the cost accounting system

Question 7

time lag between the two due to credit relations with customers :​

Answer 7

Revenue Cycle

Question 8

Component of Revenue cycle (sales order processing)​

Answer 8

physical component

Question 9

Component of Revenue (cash receipts)

Answer 9

financial component

Question 10

used to capture and formalize transaction data needed for transaction processing​

Answer 10

Source Documents

Question 11

the result of transaction processing​

Answer 11

Product Documents

Question 12

a product document of one system that becomes a source document for another system​

Answer 12

Turnaround Documents

Question 13

a record of chronological entry

Answer 13

Journals

Question 14

specific classes of transactions that occur in high frequency​

Answer 14

special journals

Question 15

nonrecurring, infrequent, and dissimilar transactions​

Answer 15

general journal

Question 16

a book of financial accounts ​

Answer 16

Ledger

Question 17

shows activity for each account listed on the chart of accounts​

Answer 17

general ledger

Question 18

shows activity by detail for each account type​

Answer 18

subsidiary ledger

Question 19

generally contains account data (e.g., general ledger and subsidiary file)​

Answer 19

Master File

Question 20

a temporary file containing transactions since the last update

Answer 20

Transaction File

Question 21

contains relatively constant information used in processing (e.g., tax tables, customer addresses)​

Answer 21

Reference File

Question 22

contains past transactions for reference purposes​

Answer 22

Archive File

Question 23

A documentation technique to represent the relationship between entities in a system.​

Answer 23

Entity Relationship Diagram (ERD)

Question 24

version of ERD is widely used in AIS. REA uses 3 types of entities: ​

resources (cash, raw materials)​

events (release of raw materials into the production process)​

agents (inventory control clerk, vendor, production worker)​

Answer 24

REA model

Question 25

use symbols to represent the processes, data sources, data flows, and entities in a system​

Answer 25

Data Flow Diagrams (DFD)

Question 26

represent the logical elements of the system​ do not represent the physical system​

Answer 26

Data Flow Diagrams (DFD)

Question 26

illustrate the relationship among processes and the documents that flow between them​

Answer 26

Document Flowcharts

Question 26

contain more details than data flow diagrams​

Answer 26

Document Flowcharts

Question 26

are used to represent the relationship between the key elements--input sources, programs, and output products--of computer systems​

Answer 26

System Flowcharts

Question 26

clearly depict the separation of functions in a system​

Answer 26

Document Flowcharts

Question 26

depict the type of media being used (paper, magnetic tape, magnetic disks, and terminals)​

Answer 26

System Flowcharts

Question 26

in practice, not much difference between document and system flowcharts​

Answer 26

System Flowcharts

Question 26

use relational database tables​ have high degree of process integration and data sharing​

Answer 26

Modern systems

Question 26

client-server based and process transactions in real time​

Answer 26

Modern systems

Question 26

some are mainframe based and use batch processing​

Answer 26

Modern systems

Question 27

mainframe-based applications​ batch oriented​

Answer 27

Legacy systems

Question 28

early _______ use flat files for data storage​ later ________ use hierarchical and network databases

Answer 28

legacy systems

Question 29

data storage systems promote a single-user environment that discourages information integration​

Answer 29

Legacy systems

Question 30

is a group of similar transactions that are accumulated over time and then processed together.​

Answer 30

batch

Question 31

In batch processing, ________ exists between the event and the processing.​

Answer 31

time lag

Question 32

source documents are transcribed by clerks to magnetic tape for processing later​

Answer 32

Keystroke

Question 33

identifies clerical errors in the batch and places them into an error file​

Answer 33

Edit Run

Question 34

places the transaction file in the same order as the master file using a primary key​

Answer 34

Sort Run

Question 35

changes the value of appropriate fields in the master file to reflect the transaction

Answer 35

Update Run

Question 36

the original master continues to exist and a new master file is created​

Answer 36

Backup Procedure

Question 37

process transactions individually at the moment the economic event occurs​

Answer 37

Real-Time Systems

Question 38

have no time lag between the economic event and the processing​

Answer 38

Real-Time Systems

Question 39

generally require greater resources than batch processing since they require dedicated processing capacity; however, these cost differentials are decreasing​

Answer 39

Real-Time Systems

Question 40

oftentimes have longer systems development time​

Answer 40

Real-Time Systems

Question 41

is characterized by high-volume, independent transactions, such are recording cash receipts checks received in the mail.

Answer 41

AIS processing

Question 42

Represent items in sequential order​ Used to prenumber source documents​ Track each transaction processed ​ Identify any out-of-sequence documents​

Answer 42

Sequential Codes​

Question 43

Represent whole classes by assigning each class a specific range within the coding scheme​ Used for chart of accounts ​ The basis of the general ledger​ Allows for the easy insertion of new codes within a block ​ Don’t have to reorganize the coding structure​

Answer 43

Block Codes

Question 44

Represent complex items or events involving two or more pieces of data using fields with specific meaning​

Answer 44

Group Codes​

Question 45

Used for many of the same purposes as numeric codes ​ Can be assigned sequentially or used in block and group coding techniques​ May be used to represent large numbers of items​ Can represents up to 26 variations per field​

Answer 45

Alphabetic Codes

Question 46

Alphabetic characters used as abbreviations, acronyms, and other types of combinations​ Do not require users to memorize the meaning since the code itself is informative – and not arbitrary ​ NY = New York​

Answer 46

Mnemonic Codes​