Chapter 1-Introduction to AIS

Question 1

Accounting Information System

Answer 1

comprises the processes, procedures, and systems that capture accounting data from business processes; record the accounting data in the appropriate records; process the detailed accounting data by classifying, summarizing, and consolidating,; and report the summarized accounting data to internal & external users.

Question 2

Application Controls

Answer 2

used specifically in accounting applications to control inputs, processing, and output.

Question 3

Automated Matching in Purchasing

Answer 3

a system in which the software matches an invoice to its related purchase order and receiving report. Microsoft Dynamics GP does this.

Question 4

Batch Processing

Answer 4

requires that all similar transaction be grouped together for a specified time; then this group of transactions is processed as a batch. Best suited for applications having large volumes of similar transactions that can be processed at regular intervals. Payroll is a good example.

Question 5

Big Data

Answer 5

high-volume, high-speed information that may be so large and diverse that it demands innovative forms of IT processing.

Question 6

Bit

Answer 6

the smallest unit of information in a computer system. a bit can have only one of two values: zero or one. All data in a computer system is reduced to a set of bits, or zeros and ones.

Question 7

Business Process

Answer 7

a prescribed sequence of work steps performed in order to produce a desired result for the organization.

Question 8

Business Process Engineering (BPR)

Answer 8

the purposeful and organized changing of business processes to make them more efficient.

Question 9

Byte

Answer 9

a unit of storage that represents one character.

Question 10

Corporate Governance

Answer 10

An elaborate system of checks and balances whereby a company’s leadership is held accountable for building shareholder value and creating confidence in the financial reporting processes.

Question 11

Data Mining

Answer 11

The process of searching data within the data warehouse for identifiable patterns that can be used to predict future behavior.

Question 12

Data Warehouse

Answer 12

An integrated collection of enterprise-wide data that generally includes several years of nonvolatile data, used to support management in decision making and planning.

Question 13

Database

Answer 13

a collection of data stored on the computer in a form that allows the data to be easily accessed, retrieved, manipulated, and stored.

Question 14

E-Business

Answer 14

the use of electronic means to enhance business processes. It encompasses all forms of online electronic trading- both consumer based and B2B.

Question 15

Electronic Data Interchange (EDI)

Answer 15

the inter-company, computer-to-computer transfer of business documents in a standard business format.

Question 16

Enterprise Resource Planning Software (ERP)

Answer 16

multi-module software system designed to manage all aspects of an enterprise.

Question 17

Enterprise Risk Management (ERM)

Answer 17

a process, effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and mage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

Question 18

E-Payables & Electronic Invoice

Answer 18

terms that refers to web-enabled receipt and payment of vendor invoices.

Question 19

Evaluated Receipt Settlement (ERS)

Answer 19

an invoice-less system in which computer hardware and software complete an invoice-less match comparing the purchase order with the goods received.

Question 20

Field

Answer 20

one item within a record

Question 21

File

Answer 21

An entire set of related records

Question 22

General Controls

Answer 22

apply overall to the IT accounting system; they are not restricted to any particular accounting application.

Question 23

Indexed Sequential Access Method (ISAM)

Answer 23

ISAM files are stored sequentially, but can also be accessed randomly because an index allows random access to specific records.

Question 24

Information Technology

Answer 24

the computers, ancillary equipment, software, services, and related resources as applied to support business processes.

Question 25

Internal Controls

Answer 25

the set of procedures and policies adopted within an organization to safeguard its assets, check the accuracy and reliability of its data, promote operations efficiency, and encourage adherence to prescribed managerial processes.

Question 26

IT Governance

Answer 26

The leadership, organizational structure, and processes that ensure that the enterprise achieves its goals by adding value while balancing risk versus return over IT and its processes. IT governance provides the structure that link IT processes, IT resources, and information to enterprise strategies and objectives.

Question 27

Local Area Network (LAN)

Answer 27

Computer network that spans a relatively small area. Most LANS are in a single building or group of buildings.

Question 28

Master File

Answer 28

the relatively permanent files that maintain the detailed data for each major process.

Question 29

Online Processing

Answer 29

The opposite of batch processing; Transactions are nto grouped into batches, but each transaction is entered and processed one at a time.

Question 30

Operational Database

Answer 30

contains the data that is continually updated as transactions are processed.

Question 31

POS System

Answer 31

system of hardware and software that captures retail sales transactions by standard bar coding.

Question 32

Random Access Files

Answer 32

not written or read in sequential order; rather, their records are stored in random order on a disk media.

Question 33

Real-time Processing

Answer 33

the transaction is processed immediately, and in real-time, so that the output is available immediately.

Question 34

Record

Answer 34

a set of related fields for the same entity.

Question 35

Sequential Access Files

Answer 35

store records in sequence, with one record stored immediately after another. The sequence is usually based on a key field such as employee number or customer number.

Question 36

Structured Data

Answer 36

Data that easily fits into rows and columns.

Question 37

Supply Chain

Answer 37

the entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials tot he delivery of finished products to the end user. The supply chain includes all vendors, service providers, customers, and intermediaries.

Question 38

Supply Chain Management

Answer 38

The organization and control of all materials, funds, and related information in the logistics process, from the acquisition of raw materials tot he delivery of finished products to the end user (customer).

Question 39

Transaction File

Answer 39

the set of relatively temporary records that will be processed to update the master file.

Question 40

Unstructured Data

Answer 40

Data that doesn’t fit easily into rows & columns of fixed length.

Question 41

Vendor

Answer 41

provides materials or operating supplies to an organization. Vendor & supplier are terms that are used interchangeably.

Question 42

Relational Database

Answer 42

stores data in several small two-dimensional tables that can be joined together in many varying ways to represent many different kinds of relationship among the data.