Chapter 1 - intro to AIS

Question 1

Accounting Information System (AIS)

Answer 1

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.

Question 2

Artificial Intelligence (AI)

Answer 2

The use of computer systems to simulate human intelligence processes like learning, reasoning, and self-improvement.

Question 3

Blockchain

Answer 3

Individual digital records, called blocks, linked together using cryptography in a single list, functioning as a decentralized database.

Question 4

Business Process

Answer 4

A set of related, coordinated, and structured activities and tasks performed by individuals, computers, or machines to achieve a specific organizational goal.

Question 5

Business Processes or Transaction Cycles

Answer 5

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

Question 6

Cloud Computing

Answer 6

Using a browser to remotely access software, data storage, hardware, and applications.

Question 7

Data

Answer 7

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

Question 8

Data Analytics

Answer 8

The use of software and algorithms to identify and solve problems, enhancing business performance.

Question 9

Data Dashboard

Answer 9

An interactive real-time display of key performance indicators and important data points in easily understood visualizations.

Question 10

Financing Cycle

Answer 10

Activities related to raising money by selling shares, borrowing money, paying dividends and interest.

Question 11

General Ledger and Reporting System

Answer 11

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

Question 12

Give-Get Exchange

Answer 12

Transactions that occur frequently, such as exchanging cash for inventory or paying employees for their labor.

Question 13

Goal Conflict

Answer 13

When a subsystem’s goals are inconsistent with another subsystem’s or the system’s overall goals.

Question 14

Goal Congruence

Answer 14

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

Question 15

Human Resources/Payroll Cycle

Answer 15

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

Question 16

Information Overload

Answer 16

Exceeding the amount of information a human mind can process, leading to a decline in decision-making quality and increased information costs.

Question 17

Information System

Answer 17

The people and technologies in an organization that collect, process, manage, and report information to achieve organizational objectives and goals.

Question 18

Information Technology (IT)

Answer 18

Computers and electronic devices used to store, retrieve, transmit, and manipulate data.

Question 19

Internet of Things (IoT)

Answer 19

Embedding sensors in devices to connect them to the Internet.

Question 20

Machine-Readable

Answer 20

Data formatted in a way that can be read and processed by a computer.

Question 21

Primary Activities

Answer 21

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

Question 22

Production Cycle or Conversion Cycle

Answer 22

The recurring business activities and data processing operations associated with using labor, raw materials, and equipment to produce finished goods.

Question 23

Revenue Cycle

Answer 23

The recurring business activities and data processing operations related to selling goods and services for cash or future payment.

Question 24

Supply Chain

Answer 24

An extended system including an organization’s value chain, suppliers, distributors, and customers.

Question 25

System

Answer 25

(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.

Question 26

Support Activities

Answer 26

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

Question 27

Transaction

Answer 27

An agreement between entities to exchange goods or services, measurable in economic terms.

Question 28

Transaction Processing

Answer 28

Capturing transaction data, processing, storing it, and producing information output like managerial reports or financial statements.

Question 29

Value Chain

Answer 29

Linking primary and support activities in a business to add value as a product moves through the chain.

Question 30

Value of Information

Answer 30

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

Question 31

Virtualization

Answer 31

Running multiple systems simultaneously on one physical computer.

Question 32

What are the 14 Characteristics of Useful Information?

Answer 32

Access restricted, accurate, available, reputable, complete, concise, consistent, current, objective, relevant, timely, useable, understandable, verifiable