Topic 1: Introduction to Accounting Information Systems

Question 1

Accounting Information System

Answer 1

The application of technology to the capturing, verifying, storing, sorting and reporting of data relating to an organisation’s activities.

Question 2

Controls

Answer 2

The set of checks and balances that ensures the system is running as expected and that there are no data errors or exceptional circumstances.

Question 3

Data

Answer 3

Raw facts relating to or describing a single business transaction or event.

Question 4

External Environment

Answer 4

The factors or pressures outside a system that influence its design and operation.

Question 5

Information Overload

Answer 5

The situation where an individual has more information than is needed or is able to be processed in a meaningful way when working through to a decision.

Question 6

Inputs

Answer 6

Data and other resources that are the starting point for a system.

Question 7

Outputs

Answer 7

What is obtained from a system, or the result of what the system does.

Question 8

Processing

Answer 8

Activities that are performed on the inputs into the system.

Question 9

System

Answer 9

An organised set of principles or procedures created and used to carry out a specific activity.

Question 10

System Scope

Answer 10

The domain or problem that a system addresses.