AIS 242 (1) Flashcards
_______ flows of information used primarily at the operations level to capture transaction and operations data
Horizontal
Why is information a business resource?
It needs to be appropriately managed
and is vital to the survival of contemporary businesses
This is processed data that is used to make decisions, resolve conflicts, and/or reduce uncertainty.
Information
When it comes to Vertical flows of information what is a
Downward flow
and
Upward Flow
Downward flows–instructions, quotas, and budgets
Upward flows–aggregated transaction and operations data
A group of interrelated multiple components or subsystems that serve a common purpose
System
When is a system a subsystem and vice versa?
A system is called a subsystem when it is viewed as a component of a larger system.
A subsystem is considered a system when it is the focus of attention.
This is the set of formal procedures by which data are collected, processed into information, and distributed to users.
Information System
Economic events that affect the assets and equities of the organization
Financial transactions
Transactions are?
A business event
The process of dividing the system into smaller subsystem parts
System Decomposition
What type of system is accounting?
Information Systems
It identifies, collects, processes, and communicates economic information about an entity to a wide variety of people regardless of the technology
This system supports daily business operations
Transaction processing system (TPS)
This system produces special-purpose reports for internal use
Management Reporting System (MRS)
This system produces financial statements and reports
General Ledger/ Financial Reporting System (GL/FRS)
Functions for transforming data into information according to the general AIS model
- data Collection
- data Processing
- data Management
- information Generation
- Data collection involves?
Capturing transaction data
Recording data onto forms
Validating and editing the data
- Data Processing Involves?
Classifying
Transcribing
Sorting
Batching
Merging
Calculating
Summarizing
Comparing
- Data Management involves?
Storing
Retrieving
Deleting
- Information Generation involves?
Compiling
Arranging
Formatting
Presenting
Information reliability requires?
Accounting Independence
Accounting activities must be separate and independent of the functional areas maintaining resources.
Accounting supports these functions with information but does not actively participate.
Decisions-makers in these functions require that such vital information be supplied by an independent source to ensure its integrity.
The structure of an organization helps to allocate ?
responsibility
authority
accountability
This is a very common method of organizing
Segmenting by business function
The REA model is an accounting framework for modeling an organization’s ?
economic resources (the assets of the organization),
economic events (phenomena that affect changes in resources), and
economic agents (individuals and departments that participate in an economic event), and
and their interrelationships.
(Entity-relationship diagrams are used to model these relationships.)
The accounting function is responsible for the ___________, while the computer function is responsible for the ___________ system.
Conceptual, Physical System
