AIS

Question 1

System

Answer 1

Two or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system.

Question 2

Goal Conflict

Answer 2

When a subsystem’s goals are inconsistent with the goals of another subsystem or the system as a whole.

Question 3

Goal Congruence

Answer 3

When a subsystem achieves its goals while contributing to the organization’s overall goal.

Question 4

Data

Answer 4

Facts that are collected, recorded, stored, and processed by an information system.

Question 5

Information

Answer 5

Data that have been organized and processed to provide meaning and. improve decision making.

Question 6

Information Overload

Answer 6

Exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision-making quality and an increase in the cost of providing information.

Question 7

Information Technology

Answer 7

The computers and other electronic devices used to store, retrieve, transmit, and manipulate data.

Question 8

Value of Information

Answer 8

The benefit provided by information less the cost of producing it.

Question 9

Business Process

Answer 9

A set of related, coordinated, and structured activities and tasks, performed by a person, a computer, or a machine, that help accomplish a specific organizational goal.

Question 10

Transaction

Answer 10

An agreement between two entities to exchange goods or services, such as selling inventory in exchange for cash; any other event that can be measured in economic terms by an organiztion.

Question 11

Transaction Processing

Answer 11

Process of capturing transaction data, processing it, storing it for later use, and producing information output, such as a managerial report or a financial statement.

Question 12

Give-Get Exchange

Answer 12

Transactions that happen a great many times, such as giving up cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor.

Question 13

Business Processes or Transaction Cycles

Answer 13

The major give-get exchanges that occur frequently in mot companies.

Question 14

Revenue Cycle

Answer 14

Activities associated with selling goods and services in exchange for cash or a future promise to receive cash.

Question 15

Expenditure Cycle

Answer 15

Activities associated with purchasing inventory for resale or raw materials in exchange for cash or a future promise to pay cash.

Question 16

Production or Conversion Cycle

Answer 16

Activities associated with using labor, raw materials, and equipment to produce finished goods.

Question 17

Human Resources / Payroll Cycle

Answer 17

Activities associated with hiring, training, compensating, promoting, and terminating employees.

Question 18

Financing Cycle

Answer 18

Activities associated with raising money by selling shares in the company to investors and borrowing money as well as paying dividends and interest.

Question 19

General Ledger and Reporting System

Answer 19

Information-processing operations involved in updating the general ledger and preparing reports for both management and external parties.

Question 20

Accounting Information System

Answer 20

A system that collects, records, stores, and processes data to produce information for decision makers. It includes people, procedures, and instructions, data, software, information technology infrastructure, and internal controls and security measures.

Question 21

Predictive Analysis

Answer 21

The use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities.

Question 22

Value Chain

Answer 22

The linking together of all primary and support activities in a business. Value is added as a product passes through the chain.

Question 23

Primary Activities

Answer 23

Value chain activities that produce, market, and deliver products and services to customers and provide post-delivery service and support.

Question 24

Support Activities

Answer 24

Value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently and effectively.

Question 25

Supply Chain

Answer 25

An extended system that includes an organization’s value chain as well as its suppliers, distributors, and customers.