Acctg 320 Chpt.1

Front 1

Luca Pacioli

Back 1

Double-entry Balance System
First Bookkeeper

Front 2

When designing a system you start with...

Back 2

the processes

Front 3

Controls...

Back 3

assure reliability

Front 4

Accurate records are kept by...

Back 4

leaving a paper trail

Front 5

Accountants

Back 5

*Test the system
*Ideal for leadership roles

Front 6

Efficient

Back 6

Faster, Quicker, Better

Front 7

Effective

Back 7

Accomplishes your goal (must understand companies goals first)

Front 8

Sarbanes-Oxley

Back 8

*For inadequate control system

Front 9

Role of Accountant

Back 9

*Not preparation, but evaluation
*Analysis (Qualitative)
*Team Approach
*Information Systems

Front 10

Traditional role of Accountant

Back 10

Focus on measuring economic events (bookkeeping)

Front 11

Accounting Information System

Back 11

A system is a set of 2 or more interrelated components that interact to achieve a goal

Front 12

What does an AIS do?

Back 12

collects, records, stores, and processes data to produce information for decision makers

Front 13

What six components does an AIS consist of?

Back 13

1. People
2. Procedures
3. Data
4. Software
5. IT infrastructure
6. Internal controls and security measures

Front 14

Most important AIS control?

Back 14

PEOPLE (also the greatest weakness)

Front 15

What three important functions does the AIS perform?

Back 15

1. Collect and Store Data
2. Process the data into USEFUL information for decision making (GOAL)
3. Provide adequate controls (Sarbanes-Oxley)

Front 16

Controls ensure that...

Back 16

*Business activities are recorded and processed accurately
*Organizational assets and data are safeguarded

Front 17

How does an AIS add value to an organization?

Back 17

provides accurate and timely info to improve the business

Front 18

Three different decision structures

Back 18

1. Structured
2. Semi-structures
3. Unstructured

Front 19

Three different decision scopes

Back 19

1. Operational control
2. Management control
3. Strategic planning

Front 20

What is the Corporate Strategy?

Back 20

*Product differentiation
*Low cost

Front 21

Three different strategic positions?

Back 21

1. Variety-based
2. Needs based
3. Access-based

Front 22

What are the characteristics of useful information?

Back 22

*Relevant
*Timely
*Reliable
*Complete
*Understandable
*Verifiable
*Accessible

Front 23

What is the value of info?

Back 23

Benefits produced - cost

Front 24

Goal conflict

Back 24

when a decision or action of a subsystem is inconsistent with the goals of another subsystem or the system as a whole

Front 25

Goal congruence

Back 25

when a subsystem achieves its goals while contributing to the organizations overall goal.

Front 26

Integration

Back 26

Eliminates duplicate recording, storage, reporting, and other processing activities in an organization.

Front 27

Data

Back 27

Facts that are collected, recorded, stored, and processed by an information system

Front 28

Information

Back 28

Data that have been organized and processed to provide meaning to a user

Front 29

Mandatory Information

Back 29

required by a govt. entity (report to IRS)

Front 30

Essential Information

Back 30

required to conduct business with external parties (purchase orders & customer billings)

Front 31

Organization's Value Chain

Back 31

Consists of five primary activities

Front 32

Inbound Logistics

Back 32

receiving, storing, and distributing the materials an organization uses to create the services and products it sells

Front 33

Operations Activities

Back 33

transform inputs into final products or services to customers

Front 34

Outbound Logistics

Back 34

distribute finished products or services to customers

Front 35

Marketing & Sales

Back 35

activities help customers buy the organization's products or services.

Front 36

Service

Back 36

activities provide post-sale support to customers

Front 37

Support Activities

Back 37

Allow the five primary activities to be performed efficiently and effectively (four categories)

Front 38

Firm Infrastructure

Back 38

accounting, finance, legal, & general admin activities

Front 39

Human resources

Back 39

recruiting, hiring, training, and providing employee benefits and compensation

Front 40

Technology

Back 40

improve a product or service (R&D, product design, website)

Front 41

Purchasing

Back 41

procure raw materials, supplies, machinery, and the buildings used to carry out the primary activities

Front 42

Operational Control

Back 42

relates to the effective & efficient performance of specific tasks

Front 43

Management Control

Back 43

relates to the effective & efficient use of resources for accomplishing organizational objectives

Front 44

Strategic Planning

Back 44

relates to establishing organizational objectives and policies for accomplishing those obectives

Front 45

Product differentiation Strategy

Back 45

entails adding features or services not provided by competitors to a product so you can charge customers a premium price.

Front 46

Low-Cost Strategy

Back 46

entails striving to be the most efficient producer of a product or service