Class 2 - Types and Value of IS

Question 1

What are the 5 components of AIS?

Answer 1

People
Procedures
Data
Software
IT infrastructure

Question 2

What is an accounting information system (AIS)?

Answer 2

A system that records, processes and reports on business information needs and events

to provide financial and non-financial information to make decisions

and have appropriate levels of internal controls (security measures to protect sensitive data) for those transactions

Question 3

Why is an AIS important?

Answer 3

It provides information that companies are required to have and also information that can be useful to make important decisions.

Question 4

What are the attributes of useful information?

Answer 4

Relevant – information that is capable of making a difference in a decision. Needs to be:
Predictive Value
Feedback Value
Timely

Reliable – information that is free from bias and error. Needs to be:
Verifiable
Representational Faithfulness
Neutrality

Question 5

What are the database types?

Answer 5

Flat file
Hierarchical
Relational
(Object-oriented)