Chapter 1 and 2 Flashcards
Data
Facts collected, recorded, and stored in the system
Information
Data organized in a meaningful way
Information Overload
Too much information reduces decision quality
Information Technology
Used to help effective decision making and condense information
Value of Information (formula)
Benefit-Cost = Value of Information
When is information considered valuable?
When the benefits exceed the cost of gathering, maintaining, and storing the data.
Access Restricted
Limit access to authorized parties
Accurate
Accurate, correct, and free of error
Available
Available to users when needed
Reputable
Perceived as true and credible
Complete
Does not omit important aspects of events or activities
Concise
Clear, succinct, brief, but comprehensive
Consistent
Presented in the same format over time
Current
Up to the present data and time
Objective
Unbiased, unprejudiced, and impartial
Relevant
Reduces uncertainty and improves decision making
Timely
Provided in time for decision maker to make decisions
Useable
Easy to use for different tasks
Understandable
Easily comprehended and interpreted
Verifiable
Two independent people can produce the same information.
Machine-Readable
can be read and processed by a computer
Business Process
A set of related, coordinated, and structured activities and tasks performed by people, machines, or both to achieve a specific organizational goal
Components of an Information System (3)
People, Organization, Technology
Transactions
Agreement between two entities to exchange goods/services which has economic value
Transaction Processing
Transaction data is used to create financial statements
Revenue Cycle
Give goods/service - Get Cash
Expenditure Cycle
Get goods/service - Give Cash
Financing Cycle
Give Cash- Get Cash
Production Cycle
Give labor/raw materials - Get finished goods
Payroll Cycle
Give cash- Get labor
Accounting Information System
System that collects, records, stores, and processes data to produce information for decision makers
AIS Consists of
People, Processes, Technology, Controls
AI can be used in what fields?
Business, Education, Finance, Healthcare
Data Analytics
The use of software and algorithms to find and solve problems and improve business performance
Blockchain
individual digital records, called blocks, linked together using cryptography in a single list
Cloud Computing
remote access to software, data storage, hardware, and applications
Virtualization
The running of multiple systems simultaneously on one physical computer
Internet of Things (IoT)
The embedding of sensors in a multitude of devices.
AIS and strategy
A strategy is the overall goal the organization hopes to achieve… AIS is influenced by an organization’s strategy.
Value Chain
links together different activities within an organization that provide value to a customer
Primary Activities
Provide direct value to the customer
Support Activities
Enable primary activities to be efficient and effective
Supply Chain
An extended system that includes the organization’s value chain as well as its suppliers, distributors, and customers
Data Processing Cycle
Data input – Data Processing – Information Output
Data Input (processing steps)
Capture, Check, Ensure policies are followed
Data Capture
Activity interests, Resources affected, People who participated in the activity
Data Storage
Chart of accounts, Transaction journals, Subsidiary ledgers, General ledger
Sequence Codes
items numbered consecutively
Block Code
blocks of numbers reserved for specific categories
Group Codes
Two or more subgroups of digits used to code items
Mnemonic codes
Letters and numbers interspersed for identification
Types of Data Processing
Creating new records,
Reading existing data
Updating previous records or data
Deleting data
