chapter 1

Question 1

most transaction info processed by…

Answer 1

operations personnel who conduct day to day operations information

Question 2

operations personnel … the information

Answer 2

summarize info as it moves up the chain of management

Question 3

management … the information

Answer 3

push info down
ex: price change on product

Question 4

3 groups that engage with the transaction info

Answer 4

• stakeholders, suppliers, customers

Question 5

system

Answer 5

a group of interrelated components for a common purpose
ex: car has diff systems
–> steering whee

Question 6

interdependency

Answer 6

systems related on each other

Question 7

decomposition

Answer 7

to break 1 system into smaller parts

Question 8

why do we need controls

Answer 8

to ensure everything is working properly

Question 9

information system

Answer 9

set of formal procedures by which data are collectred, processed into information, and distributed to users

Question 10

transaction

Answer 10

event which causes a change in A L or E

Question 11

financial transaction

Answer 11

numerical economic event that affects A and E

Question 12

nonfinancial transaction

Answer 12

ex: shipping address

Question 13

2 things an accounting system needs to capture

Answer 13

financial (numbers) and nonfinancial (customer address)

Question 14

accounting info system should help us to do 3 things

Answer 14

1. process transaction
2. generate general ledgers and fin states
3. help management run business

Question 15

transaction processing system (TPS)

Answer 15

• converts economic events into financial transactions
• records financial transactions in the accounting records
• distribute financial info to support operations

Question 16

general ledger/financial reporting system (GL/FRS)

Answer 16

accounting cycle.
- updates general ledger control accounts
- handles nondiscretionary reporting requirements

Question 17

management reporting system (MRS)

Answer 17

internal info needed to manage a business and handles discretionary reporting

Question 18

data

Answer 18

random numbers/stuff, have no direct effect on users actions

Question 19

information

Answer 19

info makes someone to act

Question 20

data collection

Answer 20

first operational stage in info system
- control @ collection stage to prevent garbage in garbage out.

Question 21

data attribute

Answer 21

every nugget we have about someone
ex: email, address, phone number

Question 22

record

Answer 22

all attributes about particular entity = record

Question 23

file

Answer 23

all records = file

Question 24

relevence

Answer 24

1. info must be capable of making a difference
2. differs amongst alternatives (differential analysis)

Question 25

timeliness

Answer 25

quicker the user has info the better

Question 26

accuracy

Answer 26

faithful rep

Question 27

overall goals of AIS

Answer 27

1. support stewardship --> run org well = managers responsibility 2. support decision making 3. support day to day operations

Question 28

independence from management

Answer 28

the more independently the accounting people in the company can act the better

Question 29

centralized data processing

Answer 29

aka database 1 computer, all users go into there

Question 30

distribution data processing (DDP)

Answer 30

aka flat file system/ legacy system - each user has their own computer/database

Question 31

distribution approach pros and cons

Answer 31

pros - cost savings - user satisfaction --> user can pick own software system - backup at multiple sites --> everyone back up their own stuff, if database corrupt, only affects 1 user cons - wasted resources/redundancy --> centralized stores info only one and applicable for all users - incompatible systems --> doesnt correspond well with users of other systems - poor segregation of duties --> small departments dont segregate duties well - difficult to find experts --> more niche and unique systems may not have the same support system

Question 32

commercial software

Answer 32

buying package off the shelf, not personalized. Mass production --> now has add ons to base package

Question 33

Software as a service (SaaS)

Answer 33

more as a consumption model --> subscription service model ex: dropbox pay subscription to use service

Question 34

accountants and IT professionals

Answer 34

accountants need to voice their needs to programmers

Question 35

tax and assurance services

Answer 35

assurance = more inclusive term --> anything a CPA firm does to better the quality of info for a user ex: audit

Question 36

advisory services

Answer 36

consulting services

Question 37

when to use $ sign

Answer 37

top and at the bottom line

Question 38

sorting rules

Answer 38

- use home page sort only for end columns - sorting by middle columns by going to data>sort

Question 39

vlookup

Answer 39

grab something from another table using a connecting link between them ex: state

Question 40

look up value

Answer 40

common link ex: state

Question 41

table array

Answer 41

complete other table you want to reference

Question 42

column index number

Answer 42

what column do you want to grab ex: 2 = 2nd column