Exam 1

Question 1

What is the difference between data and information?

Answer 1

Data are facts collected, stored, and recorded in the system. (A date, time, name) Information is when we organize the data within a context. (when the data is meaningful, it is considered information).

Question 2

An AIS converts _____ to _____.

Answer 2

Data to Information

Question 3

Is it necessary for AIS to have at least one computer?

Answer 3

No

Question 4

Value of information is determined by its _____.

Answer 4

Reliability
(Information is valuable when the benefits exceed the costs)

Question 5

What is a transaction processing system?

Answer 5

TPS converts economic events into financial transactions and distributes the information to support daily operations. (journal entry)

Question 6

What is an AIS?

Answer 6

Is a system that collects, records, stores, and processes data to produce information for decision makers.
It makes mannual processing easier.

Question 7

What are the 3 components of an information system?

Answer 7

People, technology, and organization

Question 8

What is a business process?

Answer 8

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

Question 9

List the basic business processes. (5)

Answer 9

1. Revenue cycle
2. Expenditure cycle
3. Production cycle
4. Payroll cycle (optional)
5. Financial cycle

Question 10

Why isn’t Excel considered an AIS?

Answer 10

Its limited functionalities often prevent large business from implementing Excel for their accounting systems. Excel is a tool, rather than the entire toolbox.

Question 11

What is a source document?

Answer 11

The original document in a transaction
- Paper source documents
- turnaround documents
- source data automation
a computer screen used for data entry

Question 12

What is Big Data?

Answer 12

Big Data refers to the corporate accumulation of massive amounts of data. This data is then analyzed to provide context.
A large amount of data is analyzed to provide context.

Question 13

What are the 5 dimensions of Big Data?

Answer 13

1. Volume
2. Velocity
3. Variety
4. Veracity
5. Value

Question 14

What is an ERP system?

Answer 14

Enterprise Resource Planning system is a software designed to manage and integrate activities from the entire organization.

Question 15

What are the advantages of an ERP system?

Answer 15

1. Integrated enterprise-wide single view of the organizations’ data
2. Data captured once
3. Greater visibility and monitoring capabilities for management
4. Improve access of control of the data through security settings
5. Improves customer service
6. Standarization of procedures and reports
7. Increases productivity through automation

Question 16

What are the disadvantages of an ERP system?

Answer 16

1. Costly
2. Significant amount of time to implement
3. Complexity
4. Customizing or standardizing a business process
5. User resistance
6. Requires users to have significant experience & training
7. Reluctance to share confidential information

Question 17

Advantages of an AIS?

Answer 17

Cost-effectiveness
Time-effectiveness
Easy access
Accuracy

Question 18

Disadvantages of an AIS?

Answer 18

Initial Cost of Installment & Training
Manual Intervention
Error Cannot be Completely Eliminated
Confidentiality
Virus Attacks
Obsoletion