Chapter 1 - intro to AIS Flashcards
Accounting Information System (AIS)
A system that collects, records, stores, and processes data to produce information for decision makers, encompassing people, procedures, data, software, information technology infrastructure, and internal controls and security measures.
Artificial Intelligence (AI)
The use of computer systems to simulate human intelligence processes like learning, reasoning, and self-improvement.
Blockchain
Individual digital records, called blocks, linked together using cryptography in a single list, functioning as a decentralized database.
Business Process
A set of related, coordinated, and structured activities and tasks performed by individuals, computers, or machines to achieve a specific organizational goal.
Business Processes or Transaction Cycles
The major give-get exchanges that frequently occur in most companies.
Cloud Computing
Using a browser to remotely access software, data storage, hardware, and applications.
Data
Facts collected, recorded, stored, and processed by an information system.
Data Analytics
The use of software and algorithms to identify and solve problems, enhancing business performance.
Data Dashboard
An interactive real-time display of key performance indicators and important data points in easily understood visualizations.
Financing Cycle
Activities related to raising money by selling shares, borrowing money, paying dividends and interest.
General Ledger and Reporting System
Information-processing operations involved in updating the general ledger and preparing reports for management and external parties.
Give-Get Exchange
Transactions that occur frequently, such as exchanging cash for inventory or paying employees for their labor.
Goal Conflict
When a subsystem’s goals are inconsistent with another subsystem’s or the system’s overall goals.
Goal Congruence
When a subsystem achieves its goals while contributing to the organization’s overall goal.
Human Resources/Payroll Cycle
Activities associated with hiring, training, compensating, evaluating, promoting, and terminating employees.
Information Overload
Exceeding the amount of information a human mind can process, leading to a decline in decision-making quality and increased information costs.
Information System
The people and technologies in an organization that collect, process, manage, and report information to achieve organizational objectives and goals.
Information Technology (IT)
Computers and electronic devices used to store, retrieve, transmit, and manipulate data.
Internet of Things (IoT)
Embedding sensors in devices to connect them to the Internet.
Machine-Readable
Data formatted in a way that can be read and processed by a computer.
Primary Activities
Value chain activities that produce, market, and deliver products and services to customers, including post-delivery service and support.
Production Cycle or Conversion Cycle
The recurring business activities and data processing operations associated with using labor, raw materials, and equipment to produce finished goods.
Revenue Cycle
The recurring business activities and data processing operations related to selling goods and services for cash or future payment.
Supply Chain
An extended system including an organization’s value chain, suppliers, distributors, and customers.
System
(1) Two or more interrelated components working together to achieve a goal. (2) The equipment and programs in a computer installation. (3) Detailed methods, procedures, and routines to carry out activities or solve problems.
Support Activities
Value chain activities like firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently.
Transaction
An agreement between entities to exchange goods or services, measurable in economic terms.
Transaction Processing
Capturing transaction data, processing, storing it, and producing information output like managerial reports or financial statements.
Value Chain
Linking primary and support activities in a business to add value as a product moves through the chain.
Value of Information
The benefit provided by information minus the cost of producing it.
Virtualization
Running multiple systems simultaneously on one physical computer.
What are the 14 Characteristics of Useful Information?
Access restricted, accurate, available, reputable, complete, concise, consistent, current, objective, relevant, timely, useable, understandable, verifiable
