The Information System Flashcards
What are the two varieties of internal information flows?
- Horizaontal flows of information
- Vertical flows of information
a. downward flows
b. upward flows
_______________ is a business resource that needs to be appropriately managed and is vital to the survival of contemporary businesses.
INFORMATION
_________________ is a group of interrelated multiple components or subsystems that serve a common purpose.
SYSTEM
A system is called a ______________ when it is viewed as a component of a larger system.
SUBSYSTEM
A subsystem is considered a _______________ when it is the focus of attention.
SYSTEM
________________ is the process of dividing the system into smaller subsystem parts.
SYSTEM DECOMPOSITION
A system wherein distinct parts are not self-contained, as they are reliant on the functioning of the other parts of the system.
SYSTEM INTERDEPENDENCY
____________________ is the set of formal procedures by which data is collected, processed into information, and distributed to users.
INFORMATION SYSTEM
A ___________ is a business event.
TRANSACTION
What are the two different types of transactions?
- Financial transactions
- Nonfinancial transactions
It is a system that identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies.
ACCOUNTING INFORMATION SYSTEMS
An Accounting Information System processes financial and nonfinancial transactions that directly affect the processing of financial transactions. On the other hand, _________________ processes nonfinancial transactions that are not normally processed by traditional AIS.
MANAGEMENT INFORMATION SYSTEMS
Name three AIS Subsystems.
- Transaction processing system
- General Ledger or Financial Reporting System
- Management Reporting System
This is an AIS subsystem that supports daily business operations.
Transaction processing system
This is an AIS subsystem that produces financial statements and reports.
General Ledger or Financial Reporting System
This is an AIS subsytem that produces special-purpose reports for internal use.
Management Reporting System
_________________ are financial transactions that enter the information system from internal and external sources.
DATA SOURCES
__________________are the most common source of data for most organizations.
EXTERNAL FINANCIAL TRANSACTIONS
__________________ involve the exchange or movement of resources within the organization.
INTERNAL FINANCIAL TRANSACTIONS
What are the four functions for transforming data into information according to the general AIS model?
- Data Collection
- Data Processing
- Data Management
- Information Generation
This function includes capturing transaction data, recording data onto forms, and validating and editing the data.
DATA COLLECTION
This function includes classifying, transcribing, sorting, batching, merging, calculating, summarizing, and comparing data.
DATA PROCESSING
This function includes storing, retrieving, and deleting data.
DATA MANAGEMENT
This function includes compiling, arranging, formatting and presenting data.
INFORMATION GENERATION
What are the five characteristics of useful information?
- Relevance
- Timeliness
- Accuracy
- Completeness
- Summarization
What are the three goals of an information system?
To suport:
1. the stewardship function of management
2. management’s decision making
3. the firm’s day-to-day operations
_____________________ is a very common method of organizing.
SEGMENTING BY BUSINESS FUNCTION
Information reliabilty requires _______________________________
ACCOUNTING INDEPENDENCE
There are two ranges of the computer services function. Most companies fall between these two ranges. What are these two ranges?
- Distributed Data Processing
- Centralized Data Processing
This Computer Services Function involves reorganizing the computer services function into small information processing units that are distributed to end users and placed under their control.
DISTRIBUTED DATA PROCESSING
This Computer Services Function involves all data processing being performed by one or more large computers housed at a central site that serves users throughout the organization.
CENTRALIZED DATA PROCESSING
What are four potential advantages of a distributed processing system?
- Cost reductions
- Improved cost control responsibility
- Improved user satisfaction
- Backup of data
What are the seven potential disadvantages of a distributed processing system?
- Loss of control
- Mismanagement of company resources
- Hardware and software incompatibility
- Redundant tasks and data
- Consolidating tasks usually segregated
- Difficulty attracting qualified personnel
- Lack of standards
____________________ is a model where transaction processing, information processing, and accounting are physically performed by people, usually using paper documents.
MANUAL PROCESSING MODEL
What are five data redundancy problems?
- Data storage
- Data updating
- Currency of information
- Task-data dependency
- Data integration
____________________ is an accounting framework for modeling an organization’s economic resources, events, agents, and interrelationships among these facets of the organization.
REA MODEL
________________________ are often used to model interrelationships among resources, events, and agents as seen in the REA Model.
Entity-relationship diagrams
The accounting function is responsible for the physical system, while the computer function is responsible for the conceptual system. True or False?
FALSE. The accounting function is responsible for the conceptual system, while the computer function is responsible for the physical system.
The_______________________ determines the nature of the information required, its sources, its destination, and the accounting rules that must be applied.
a. conceptual system
b. physical system
conceptual system
What are the three functions of accountants in the information system?
- Information System Users
- System Designers
- System Auditors
These accountants attest to fairness of financial statements.
EXTERNAL AUDITORS
These accountants evaluate IT, often as part of external audit.
IT AUDITORS
These accountants provide in-house IS and IT appraisal services.
INTERNAL AUDITORS
