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24 Cards in this Set
- Front
- Back
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Chapter 1
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Chapter 1
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What is the definition of an Accounting Information System (AIS)?
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Is a collection of data and processing procedures that creates needed information for its users.
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What is the essence of AIS's?
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Collections of raw and stored data (that together typically serve as INPUTS), processing methods (usually called "procedures"), and information (outputs) that serve useful accounting purposes.
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What is data?
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Raw facts about events that have little organization or meaning.
Example: A set of raw scores on a class examination. |
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To be useful, most data must be...?
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processed into useful INFORMATION, for example, by sorting, manipulating, aggregating, or classifying them.
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What is an example of Information?
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The computing of the class average from the raw scores of a class examination.
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Does raw data have to be processed in order to be meaningful?
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No, but most users need it to be processed.
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What is the Audit Trail?
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The path the data follow as they flow through an AIS.
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What marks they starting point of an Audit Trail?
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Raw data
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What is the AIS model?
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Inputs -----> Processes -----> Outputs
Page #9 on Powerpoint #1 has a great picture. |
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What are Inputs?
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Data/information from internal/external sources.
Raw and/or stored data serve as primary inputs. |
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What are Processes?
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Sorting, Organize, Calculate
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What are Outputs?
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Information for internal/external decision makers.
Meaningful information is the primary output. |
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What is Information Overload?
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Too much information, and especially too much useless information, can overwhelm its users, possibly causing relevant information to be lost or overlooked.
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Definition of a System?
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An assemblage or combination of things or parts forming a complex or unitary whole
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Definition of an Information System?
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An integrated set of components for collecting, storing,
processing, and communicating information |
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What is the Accounting Cycle?
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Short version:
Economic event ----> Journal ----> Ledger ----> Financial Statements Long Version: 1. Journalize transactions 2. Post to ledger 3. Trial balance 4. Adjusting entries 5. Adjusted Trial Balance 6. Financial Statements 7. Close general ledger account (income/expenses). |
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What are knowledge workers?
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Workers who produce, analyze, manipulate, and distribute information about business activities.
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What is Cloud Computing?
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It is a way of using business applications over the internet.
Example: Using the internet for bank transactions. |
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What is Sustainability Reporting?
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It focuses on nonfinancial performance measures that might impact an organizations income, value, or future performance.
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What is Suspicious Activity Reporting (SAR)
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Reporting of suspicious financial transactions to the U.S. Treasury Department.
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What is Forensic Accounting?
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Combining the skills of investigation, accounting, and auditing to find and collect pieces of information that collectively provide evidence that criminal activity is in progress or has happened.
Corporate, Governmental, Terrorism |
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A dashboard is?
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A summary screen typically used by managers.
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The Sarbanes-Oxley Act of 2002 forbids?
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Corporations from making personal loans to executives.
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