Details Title: Acctg 320 - MT1 Description: Acctg 320 - MT1 Total Flash Cards: 95 Created: 04/07/2009 20:55:28		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Business Flashcards
Cards in this set: Term Documentation Definition narratives, flowcharts, diagrams, & other materials that explain how a system works Term Data Flow Diagram Definition graphically describes the flow of data w/in an org.   4 symbols   Useful for high-level system descriptions Term DFD   Data Flow Definition represents the flow of data between processes, data stores, & data sources/destinations   - Symbol -   Term DFD   Processes Definition transformation of data   - Symbol-     Term DFD   Data Store Definition temporary or permanent data repository     - Symbol -   _______   _______   Term DFD   Context Diagram Definition highest-level DFD   summarly-level system view   - ex. -   depicts the system & its external players Term Flowchart Definition analytical technique to pictorally describe a system   standard symbols   more detailed than a DFD Term Document Flowchart Definition illustrates flow of doc.s & info   useful in analyzing internal controls Term System Flowchart Definition relationships among the...   input → processing → output of an AIS Term Program Flowchart Definition sequence of logical operations by a computer in executing a program Term Sales & Cash Receipts Cycle   Beginning, End, Major Account Definition Begin - receipt of an order   End - cash collection   Account - Accounts Receivable Term Sales & Cash Receipts Cycle   Subcycles (x5) Definition Sales   Cash Receipts   Sales Returns & Allowances   Estimate of BD Exp.   Write-off of Uncollectibles Term System Definition set of 2 or more interrelated components   ↓   achieve goal Term Systems Concept Definition cheanges in subsystems consider the effect on other subsystems & the system as a whole Term Goal Conflict Definition subsystem action that is inconsistant w/ the goals of the system Term Goal Congruence Definition subsystem achieves it goals...& contribute to overall goals Term Integration Definition combine subsystems to avoid duplicate efforts, etc. Term Data Definition facts...recorded, stored, & processed by an IS Term Information Definition processed data in useful form Term Information Overload Definition limits to the amount of info humans can effectively absorb, etc. Term Value of Information Definition Info   benefit produced - cost of producing it Term Mandatory Information Definition external info required by a gov. entity Term Essential Information Definition external info - required to conduct business w/ external users Term Discretionary Information Definition internal info   who should get it, how much, etc. Term Acctg Info System Definition system that...   collects, records, stores, & processes...   data to produce info for decsion makers Term Characteristics of Useful Info   Relevant Definition ↓ uncertainty   ↑ predictions   confirms/corrects predictions Term Characteristics of Useful Info   Reliable Definition error-free   accurate Term Characteristics of Useful Info   Complete Definition includes important supplementary info Term Characteristics of Useful Info   Timely Definition in time to make decisions Term Characteristics of Useful Info   Understandable Definition presented in useful & intelligent form Term Characteristics of Useful Info   Verifiable Definition at least 2 independent people would generate the same results Term Characteristics of Useful Info   Accessible Definition available as needed   useable format Term Value Chain (...x5: "IOOMS") Definition activities that go into providing value to customers   Activities Inbound Logistics - handling materials Operations - inputs --> FGs Outbound Logistics - distribution to customers Marketing & Sales - help customers buy g/s Service - post-sale support Term Support Activities (x4: IHTP) Definition allow the 5 primary value chain activities to be performed   Infrastructure HR Technology Purchasing Term Supply Chain Definition links suppliers to customers   -ex.-   RM Suppliers ↓ Manufacturer ↓ Distributor ↓ Retailer ↓ Customer Term Structured Decisions Definition repetitive, routine, & understood   can be delegated to low-level employees Term Semistructured Decisions Definition incomplete decision making rules   subjective assessments   supplement formal data analysis Term Unstructured Decisions Definition nonrecurring & nonroutine   No framework or model for decision-making Term Decision Scope   Operational Control Definition efficient performance of specific tasks   - ex. -   inventory management extending credit Term Decision Scope   Management Control Definition efficient use of resources to accomplish org. objectives   - ex. -   budgeting product improvements HR policies Term Decision Scope   Strategic Planning Definition establishing org. objectives & policies to accomplish them   - ex. - financing policies acctg. practices developing new product lines acquiring other businesses Term Synergy Definition system's total activities > sum of each part   mutually reinforcing activities Term Predictive Analysis Definition uses data warehouses, etc....   complex algorithms...   forecast future events Term Transaction Definition agreement to exchange g/s...   or any other event w/ measureable economic effects Term Transaction Processing Definition transaction data → info output (i.e. 10-K) Term Give-Get Transaction Cycles   Revenue Cycle Definition g/s sold for $$$ Term Give-Get Transaction Cycles   Expenditure Cycle Definition purchase inventory, etc. to produce FGs Term Give-Get Transaction Cycles   Production Cycle Definition Raw Materials → FGs Term Give-Get Transaction Cycles   HR/Payroll Cycle Definition hire train compensate evaluate promote terminate...employees Term Give-Get Transaction Cycles   Financing Cycle Definition sell stock to investors   borrow $$$ & pay interest   pay dividends Term General Ledger & Reporting System Definition generates info for management & external users Term ***Data Processing Cycle Definition operations that turn data → meaningful info     ***don't forget about data storage Term Source Documents Definition data on business activities   can be used to verify account totals, etc. Term Turnaround Documents Definition data records sent to external users ↓ returned to the system as an input Term Source Data Automation Definition capture transactions at time of origin   ↑ accuracy & efficiency of data input Term General Ledger Definition summary-level data for every...   asset, liability, equity, revenue, & expense account Term Subsidiary Ledger Definition detailed data for...   any general ledger account...   w/ many individual subaccounts   - ex. - A/R subsidiary - customer info, amounts, etc. Term Control Account Definition general ledger account = sum of corresponding subsidiary ledger Term Coding Definition systematic assignment of numbers or letters...   to items...   to classify & organize them Term Coding   Sequence Definition consecutive #   ensures no gaps w/in the sequence...ensures all items are accounted for   - ex. -   pre-numbered checks Term Coding   Block Definition Reserved blocks of ## w/in a sequence   - ex. -   auto parts = 10,000-19,999 oils = 20,000-29,999 Term Coding   Group Definition often used w/ block coding   2+ digit subgroups used to code an item   sort, summarize, & retrieve info by subcode   - ex. - Digit Position 1-2 = product line & size 3 = color 4-5 = Year of Manufacture 6-7 = optional features Term Chart of Accounts Definition list of all general ledger accounts an org. uses   includes codes for account ## Term General Journal Definition records infrequent / non-routine transactions   - ex. -   end-of-period adjustments & closing entries Term Specialized Journal Definition simplifies recording many repetitive transactions   eventually transferred to appropriate ledger   - ex. -   Sales Journal Term Audit Trail Definition provides references for where postings came from   checks accuracy & validity of ledger postings Term Entity Definition something about which info is stored   - ex. -   employees inventory customers Term Attributes Definition Important characteristics that need to be stored   necessary info about an entity   - ex. -   employee pay rate customer billing address Term Field Definition physical space...   w/ stored data values Term Record Definition Set of fields...   w/ various attributes...   of the same entity Term Data Value Definition intersecting row & column...   an individual field w/in a record   - ex. -   Address P.O. Box 123 Term File Definition related records...   grouped together Term Master File Definition Store cumulative info...   about an org.'s resources & users     (similar to a ledger in a manual AIS) Term Transaction File Definition records for individual transactions...   during a specific fiscal period...   → used to update the appropriate master file     (like a journal in a manual AIS) Term Database Definition interrelated, centrally coordinated files   - ex. -   A/R file customer & sales analysis tools ↓ customer database Term Batch Processing Definition periodic data updates Term Online, Real-Time Processing Definition updates occur as transactions occur Term Data Processing Activities (x4, "CRUD") Definition Creating - adding new data records Reading - retrieving existing data Updating - brings data current Deleting - purging useless records Term Information Outputs   Documents (def + 2) Definition records of transactions or other data     Source - Used at the beginning of transaction processing activities   Operational - generated at the end of the process Term Information Outputs   Reports Definition Summarize important data/info for use by internal & external users Term Enterprise Resource Planning system (ERP) Definition integrate all org. operations w/ traditional AIS   attempts to solve issues w/ incompatible systems, etc. Term Documentation   Narrative Description Definition written, step-by-step explanation of a system & its components   supplements flowcharts, DFDs, etc. Term DFD   Data Source / Destination Definition depict entities w/in a process   user of the info     - Symbol -   Term AIS   Components (x6: PPDSII) Definition People - operate system & perform functions Procedures/Instructions - manual & automated Data Software - process data IT Infrastructure - hardware, etc. Internal Controls & Security Term AIS   Value Addition Definition ↑ efficiency ↑ decision making ↑ knowledge sharing ↑ internal controls   ↓ cost Term General Ledger   Diagram of Role w/in AIS Definition ↓ Interal & External users Term Information Outputs   Query Definition request for specific info from a computer Term Documentation   Why should we document processes? Definition Essential to running an acctg. department   Knowledge in "someone's head" is risky - what if they leave Shows strengths & weaknesses of internal controls Sarbanes Oxley requirements Term DFDs & Flowcharts   Guidelines for Creation (x15 total, x14 listed) Definition 1 - Understand the system   2 - Ignore control processes & actions   3 - Determine system boundaries (start & stop)   4 - Draw context diagram 1st...then other details   5 - Identify & label all data flows   6 - Group data flows that always flow together   7 - Show a process whenever data is converted into a new form   8 - Group related, simultaneous processes   9 - Number/Show order of processes   10 - Include action verbs in Process names (i.e. update, prepare, etc.)   11 - Identify & label data stores   12 - Identify & label data sources & destinations   13 - Move from top → bottom, left → right   14 - Don't cross lines Term DFDs & Flowcharts   Flowchart specific guidelines Definition Identify entities to be included   Seperate column for each entity   Identify exceptions/extra info w/ annotation bracket   Use standard flowchart symbols   Use on/off-page connectors as appropriate Term ***Accountant's Objectives (x7)   ...Sales/Cash Reciepts Cycle (similar to other cycles) Definition 1 - Record all existing transactions for each subcycle 2- All transactions recorded at correct amount   3 - All transactions classified by chart of accounts   4 - All transactions included in the proper period   5 - Write-off uncollectible receivables   6 - Valuations/assumptions are reasonable   7 - All material disclosures included in F/S & notes Term ***Accountant's Objectives   in General Terms Definition completeness accuracy correct GL & account cut-off period full disclosure valuation transparency / full disclosure Term Internal Controls   ...how to get them Definition Maintain adequate documents & records   Transaction Authorization - approve credit before shipment - approval for returns, etc.   Seperate acctg roles from asset custody   Independent checks on performance - account for all sequence coded documents - check journal footings & post. ref columns - reconcile GL = subsidiary ledgers   Monthly statements to customers Term Imprest Account Definition Cash account used soley for payroll   Makes reconciliation easier     1 cash receipt = company deposits 1 cash disbursement = employee paychecks Term Definition