Week 1

Question 1

What is AIS?

Answer 1

AIS is a system that records, processes, summarises and, reports and communicates the results of business transactions to provide financial and non-financial information to facilitate decision making.

Question 2

What are the four key components of AIS?

Answer 2

It collects, processes, reports information and is useful decision making.

Question 3

What is data vs Information?

Answer 3

Data is the raw facts that describe the characteristics of an event. Whereas information is data that is organised in a meaningful way that is useful to the user.

Question 4

Difference between Discretionary vs Mandatory. Give 1 Example of each.

Answer 4

Discretionary is when there is no law requiring it to be provided to management.
E.g. activity-based costing for allocation of overheads.
Mandatory is when there is a legal requirement that the information is provided.
E.g. tax returns

Question 5

In order to be useful to decision makers, information from AIS must have…

Answer 5

relevance and faithful representation.