AIS Exam 1
relevant
Characteristics of useful: -reduces uncertainty -improves decision making -applicable and helpful
objective
Characteristics of useful: -unbiased -unprejudiced -impartial
Access restricted
Characteristics of useful: able to limit access to authorized parties
current
Characteristics of useful: includes events and activitiy data up to the present data and time
reputable
Characteristics of useful: perceived as true and credible due to highly regarded source or content
consistent
Characteristics of useful: presented in same formate over time
timely
Characteristics of useful: provided in time for decision makers to make decisions
Verifiable
Characteristics of useful: same information produced by two independent, knowledgeable people
Data analytics
What is: use of software and algorithms to find and solve problems and improve business performance
cloud computing
What is: using a browser to remotely access software, data storage, hardware, and applications
Support activities
What is: value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently and effectively.
primary activities
What is: value chain activities that produce, market, and deliver products and services to customers and provide post delivery service and support
goal congruence
What is: when a subsystem achieves its golas while contributing to the organization's overall goal
goal conflict
What is: when a subsystem's goals are inconsistent with the goals of another subsystem or the system as a whole
expenditures
What cycle: pay for raw materials
expenditures
What cycle: pay property taxes on office building
human resources/payroll
What cycle: pay sales commissions
expenditures
What cycle: pay utility bills
expenditure
What cycle: purchase raw materials
production
What cycle: put purchased goods into the warehouse
human resources/payroll
What cycle: record factory employee timecards
expenditures
What cycle: record goods received from vendor
revenue
What cycle: sell DVD player
revenue
What cycle: sell concert tickets
expenditure
What cycle: send an order to a vendor
human resources/payroll
What cycle: send new employees to a business ethics course
revenue
What cycle: update the allowance for uncollectible accounts
eXtensible Business Reporting Language
What does XBRL stand for
formal
What information system: have an explicity responsibility to produce information
acquiring inventory
A performance report about all approved vendors during the previous 12 months is information MOST needed in which business process?
product quality, efficiency, knowledge
A well-designed AIS can add value to an organization by improving ___ ___ , improving ___, and shairng ___
uncertainty, decisions, plan and schedule
Benefits of information include: -reduced ___ -improved ___ -improved ability to ____ and____ activities
activities, resources, people
Businesses need to collect data about ___ that take place, the ___ affected by the activities, and the ___ who participate in the activity
Available
Characteristics of useful: -Available to users when needed -in a format that can be easily and quickly used
concise
Characteristics of useful: -clear, succinct -appropriate volume presented briefly but comprehensively
accurate
Characteristics of useful: -correct -free of error -accurately represents events and activities
complete
Characteristics of useful: -does not omit aspects of events or activities -of enough breadth and depth
useable
Characteristics of useful: -easy to use for different tasks -human and machine readable
understandable
Characteristics of useful: -presented in a useful and intelligible format -easily comprehended and interpreted
machine-readable
Data is most used when it is in ____ format
revenue
In which business cycle are goods shipped to a customer?
revenue
In which cycle does a company ship goods to customers
decision-making , cost
Informaiton overload is when exceeding the amoung of informaotin a human mind can absorb and process, resulting in a decline in ____ quality and an increase in the ___ of providing information
collecting, processing, managing, and reporting
Information system is an organized way of ___, ___, ___, and ___ information so that an organization can achieve its objective and goals
store, retrieve, transmit, and manipulate
Information technology (IT) is the computers and other electornic devices used to ___,___,__, and ___ data
financing
What cycle: draw upon line of credit
information
One function of AIS is transforming data into usefull ___
revenue
What cycle: establish a $10,000 credit limit for a new customer
primary
Service is a ___ activity
outbound logisitics
Shipping newly manufactured phones to retailers and customers is an example of which type of primary activity?
human resources/payroll
What cycle: hire a new assistant controller
financing cycle
What cycle: obtain a bank loan
human resources/payroll
What cycle: pay federal payroll taxes
people, procedures and instructions, data, software, information technology infrastructure, and internal controls and secruity measures
What are the 6 components of an AIS?
capture, process, store, produce
What are the steps withing transaction processing?
revenue
What cycle: Collect payment on customer accounts
revenue
What cycle: Complete a picking ticket for a customer order
financing
What cycle: Pay off mortgage on factory
production
What cycle: decide how many units to make next month
human resources/payroll
What cycle: disburse payroll checks to factory workers
informal
What information system: meets a need that is not satisfied by a formal channel and operated without formal designation or responsibility
inbound logisitics
What is an example of a primary activity?
human resources
What is an example of a secondary activity?
conversion cycle
What is another name for the production cycle?
benefits of information - cost of producing
What is the formula for the value of information ?
system
What is: (1) two or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system (2) the equipment and programs that comprise a complete computer installation (3) the detailed methods, procedures, and routines that carry out specific activities, perform a duty, achieve goals or objectives, or solve one or more problem
Accounting Information System (AIS)
What is: A system that collects, records, stores, and processes data to produce information for decisions makers. It includes people, procedures and instructions, data, software, infromatoint echnology infrastructure, and internal controls and security measures
Accounting
What is: The systematic and comprehensive recording of an organization's financial transactions, including summarizing, analyzing, and reporting these transactions to all users
Artificial intelligence (AI)
What is: The use of computer systems to simulate human intelligence processes such as learning, reasoning, and self-improvement
business process
What is: a set of related, coordinated, and structured activities and tasks, performed by a person, a computer, or a machine, that helps accomplish a specific organizational goal
XBRL
What is: a variant of eXtensible Markup Language specifically designed for use in communicating the content of financial data -it does this by creating tags for each data intem that look much like the tags used by HTML
human resources/payroll cycle
What is: activities associated with hiring, training, compensating, evaluting, promoting, and terminating employees
financing cycle
What is: activities associated with raising money by selling shares in the company to investors and borrwing money as well as paying dividends and interest
transaction
What is: an agreement between two entities to exchange goods or services, such as selling inventory in exchange for cash; any other event that can be measured in economic terms by an organization
supply chain
What is: an extended system that includes an organization's value chain as well as its suppliers, distributors, and customers
Chain
What is: blocks linked together using cryptography in a single list
machine-readable
What is: data in a format that can be read and processed by a computer
information
What is: data that have been organized and processed to provide meaning and improve decision making
internet of things (IoT)
What is: embedding sensors in devices so they can connect to the internet
information overload
What is: exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision-making quality and an increase in the cost of providing information
Data
What is: facts that are collected, recorded, stored, and processed by an information syste,
Blocks
What is: individual digital records
general ledge and reporting system
What is: information-processing operations involved in updating the general ledge and preparing reports for both management and external parties
Data dashboard
What is: interactive rela-time display of key indicators of operating performance; display of important data points, metrics, and key performance indicators in easily understood data visualizations such as line or bar charts, tables, or gauges
value chain
What is: linking all primary and support activities in a business. Value is added as a product passes through the chain
transaction processing
What is: process of capturing transaction data, processing it, storing it for later us, and producing information output, such as a managerial report or a financial statement
virtualization
What is: running multiple systems simultaneously on one physical computer
blockchain
What is: the ___ isn't stored in a single location. Instead, it is a distributed ledger of hashed documents that functions as a decentralized database. Each computer in the distributed peer-to-peer network maintains a copy of the ledger to prevent a single point of failure
value of information
What is: the benefit provided by information minus the cost of producing it
information technology (IT)
What is: the computers and other electronic devices used to store, retreive, transmit, and manipulate data
Business processes or transaction cycles
What is: the major give-getexchanges that occur frequently in most companies
information system
What is: the people and technologies in an organization that produce information. It is an organized way of collecting processing, managing, and reporting infromatoin so that an organization can achieve its objective goals
revenue cycle
What is: the recurring set of business activities and data processing operations associated with selling goods and services in exchange for cash or a future promise to receive cash
give-get exchange
What is: transactions that happen a great many times, such as giving up cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor
Accessible
Which of the following characteristics of useful information is absent in the situation described above? - Joey Smith has been the controller of Nadia Cake for the past 5 years. The owners of Nadia have recently decided to expand their operation and are in the process of obtaining a loan from a local bank. In order to be qualified for the loan, the bank asks Nadia to conduct an audit of the financial records. The auditors have been unable to obtain Nadia's financial statements that were prepared by Joey. While there is no evidence of wrongdoing, the auditors are not able to complete the audit. Which of the following characteristics of useful informatino is absent in the situation described above?
expenditure
Which transaction cycle includes interactiosn between an organization and its suppliers?
information, data
___ is output, and ___ are input
support
in the value chain concept, upgrading IT is considered what kind of activity?
expenditure
receiving and storing inventory is an activity in which transaction cycle?
production cycle
what is: the recurring set of business activities and related data processing operations associated with using labor, raw materials, and equipment to produce finished goods