Chapter 1 - Accounting Information Systems & Firm Value

Question 1

Accounting Information System (AIS)

Answer 1

system that records, summarizes, and reports on business transactions to provide financial and non-financial info

Question 2

Attributes of Useful Info (2)

Answer 2

Relevant; Reliable

Question 3

Data

Answer 3

Raw facts that describe characteristics of an event that, in isolation, have little meaning

Question 4

Information

Answer 4

Data organized in a meaningful way to provide useful info to user

Question 5

Discretionary Information

Answer 5

Managerial accounting info; not required by law

Question 6

Mandatory Information

Answer 6

Required by law: IRS, SEC

Question 7

Business Value

Answer 7

Items, events, and transactions that determine the financial health and or well/being of the firm

Question 8

Business Process

Answer 8

Coordinated, standardized set of activities conducted by both people and equipment to accomplish a specific task

Question 9

Value Chain

Answer 9

Chain of business processes for a firm

Question 10

Value Chain Components

Answer 10

Inbound logistics; operations; outbound logistics; market and sales activities; service activities

Question 11

Supply Chain

Answer 11

Ensure the right product is at the right location at the right time

Question 12

Enterprise Resource Planning (ERP) System

Answer 12

Centralized database that collects data from throughout the firm