Term
| Accounting Information Systems and Steps |
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Definition
-System that collects, records, stores, and processes data to produce info for decision makers
- Develop a plan, Do Bus, Record Data, Create info, Make decisions |
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Term
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Definition
1) People
2) Produces and Instructions
3) data
4) Software
5) info tech infrastructure
6) internal controls + security measurers
- These 6 enable people to:
1)collect and store data
2) transform data to make it useful
3) provide adequate controls to guard assets |
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Term
| Transaction Cycle Diagram |
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Definition
| Financing to HR to Expenditure to Production to Revenue to Finance back to HR...All of these funnel into GL and Reporting |
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Term
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Definition
Recieve order, ship order to customer, send invoice to customer, recieve payment from customer
breaking down:
-important for managing the business
- not so detailed it becomes trivial |
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Term
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Definition
Relevant
- Feedback value
-Predictive Value
-Timeliness
Reliable
- representational faithfulness
-verifiability
-neutrality |
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Term
| AIS Supports Many Managers |
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Definition
Position
- Executive
-Middle Management
-Line Management
Type of Decision
-Unstructured
-Semi-structured
-Structured
Scope of Decision
Strategic
Managerial
Operational |
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Term
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Definition
Structured Decision: repetitive routine and understand well enough that they can be delegated to lower level employees
Semi-Structured Decision: structured by incomplete decision making rules & the need for subjective assessment to help analysis
Unstructured decision: nonrecurring & nonroutine |
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Term
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Definition
Operational Control- relates to effective & efficient performance of specific tasks
Management Control- relates to effective & efficient use of resources for accomplishing organizational objectives
Strategic Planning- est. organizational objectives and policies for accomplishing those objectives |
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Term
| 5 Major business or transaction cycles |
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Definition
Financing Cycle: sell shares in company to investors to borrow & division is paid & so is interest on loans
Revenue Cycle: goods & services are sold for cash or future promise of cash
Expenditure cycle: purchase inventory for resale or raw materials to use in producing products in exchange for cash or promise of $
Production Cycle: raw materials turn into finished goods
Human resources/payroll cycle: employees hired, trained, compensated evaluations, promoted and terminated |
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Term
Characteristics of Useful Info
- relevant
-reliable
-complete |
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Definition
Relevant- reduces uncertainty, impares decision maker's ability to make predictions, or confirm/corrects prior expectations
Reliable: free from errors or bias, accurate represents events or activities of org
Complete: does not omit import aspects of underlying events or activities it measures |
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Term
Transaction
Transaction Processing
Give-Get Exchange |
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Definition
Transaction- agreement between 2 entities to exchange goods and services or any other event that can be measured in economic terms
Transaction processing- process that begins w/capturing transaction data & ends w/info output
Give-Get Exchange- self explanatory
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Term
Characteristics of Useful Info
-timely
-understandable
-verifiable
-accessible |
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Definition
Timely- provided in time to make decision
Understandable- presented in useful & intelligible format
Verifiable- if 2 knowledgeable acting independently, produce same info
Accessible- available to users when needed & information they can use |
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