Module 1

Question 1

What is an information system?

Answer 1

An information system is the set of formal procedures by which data are collected, stored, processed into information and distributed ot users

Question 2

What is the relationship between data and information?

Answer 2

Information is data that has been processed so that it is useful to a decision-maker

Question 3

What is a transaction?

Answer 3

Transactions are data inputs that feed into an info system

Question 4

What are the two different types of transactions?

Answer 4

• Financial Transactions
• Nonfinancial Transaction

Question 5

What are Financial Transactions?

Answer 5

Economic events that affect the assets and equities of the organization

Question 6

What are nonfinancial transactions?

Answer 6

Noneconomic events that are still processed by the info system

e.g., an airline reservation, tracking customer complaints

Question 7

What are the subsystems of AIS?

Answer 7

• Accounting Information System
• Management Information System

Question 8

What is an Accounting Information System?

Answer 8

Collects, stores, and processes financial transactions and nonfinancial transactions that directly affect the processing of financial transactions

Question 9

What is a Management Information System?

Answer 9

Nonfinancial transactions that traditional AIS does not normally process

Question 10

What are the differences between an AIS and a MIS?

Answer 10

AIS processes financial transactions and non-financial transactions directly affecting financial transactions while MIS processes a broader range of data, including operational, strategic, and non-financial data to support decision-making across various management levels

Question 11

What kind of subsystems make up the AIS?

Answer 11

Typically include subsystems like transaction processing, financial reporting, and internal controls which focus on accounting data and compliance
* General Ledger
* Management Reporting System
* Transaction Processing System

Question 12

What kind of subsystems make up the MIS?

Answer 12

Typically includes subsystems such as decision support systems (DSS), executive information systems (EIS), and knowledge management systems (KMS) that provide information and support for managerial decision-making
* Finance
* Marketing
* Production
* HRs
* Distribution

Question 13

What are the 3 transaction processing subsystems?

Answer 13

• Revenue Cycle
• Expenditure Cycle
• Conversion Cycle

Question 14

What are the 4 major subsystems of the expenditure cycle?

Answer 14

• Purchasing/Accounts Payable
• Cash Disbursement
• Payroll
• Fixed Assets

Question 15

What are the 2 major subsystems of the Conversion Cycle?

Answer 15

• Production Planning and Control
• Cost Accounting

Question 16

What are the 2 major subsystems of the Revenue Cycle?

Answer 16

• Sales Order Processing
• Cash Receipts

Question 17

What 2 subsystems have a physical and financial component?

Answer 17

• Purchase order processing
• Sales order processing

Question 18

What are the 3 main evolutions stages?

Answer 18

• manual processing
• Flat-File Data Storage and Legacy Systems
• Relational Databases and Enterprise Systems

Question 19

What are the data redundancy problems associated with the Flat-File Model?

Answer 19

• Data Storage - excessive storage costs when storing duplicate information
• Data Updating - changes must be performed multiple times
• Currency of Information - a potential problem of failing to update all affected files
• Task-Data Dependency - user’s inability to obtain additional information as needs change
• Data Integration - separate files are difficult to integrate across different functions

Question 20

How does the database model solve the data redundancy problems with the flat-file model?

Answer 20

• no data redundancy - except for primary keys, data is only stored once
• single updates
• current values
• task-data independence - users have access to the full domain of data available to the firm

Question 21

Who are the 5 largest ERP Vendors?

Answer 21

1. SAP
2. Oracle
3. Sage Group
4. Workday
5. Infor

Question 22

What are the 5 main modules in SAP?

Answer 22

1. PLM
2. CRM
3. SCM
4. SRM
5. ERP

Question 23

PLM

Answer 23

Product Lifecycle Management

Question 24

CRM

Answer 24

Customer Relationship Management

Question 25

SCM

Answer 25

Supply Chain Management

Question 26

SRM

Answer 26

Supplier Relationship Management

Question 27

ERP

Answer 27

Enterprise Resource Planning

Question 28

What are the 3 Financial Modules in SAP ERP?

Answer 28

FI - Financial Accounting
CO - Controlling (Cost Management)
AM - Asset Management

Question 29

Which SAP ERP module performs GL/FRS functions?

Answer 29

FI - Financial Accounting

Designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts with a user-defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted.

Question 30

Which module performs revenue transaction processing?

Answer 30

SD - Sales and Distribution

Helps to optimize all the tasks and activities carried out in sales, delivery, and billing. Key elements are: presales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system

Question 31

Which module performs expenditure transaction processing?

Answer 31

MM - Materials Management

Supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc.