Ais Exam 1 Business Processes

Front 1

An agreement between two or more parties.

Back 1

Transaction

Front 2

A transaction that is an impulse or convenience buy.

Back 2

"Spot" Market

Front 3

A transaction for an agreed upon amount.

Back 3

Exercise Price or Stripe Price

Front 4

A process that beings with capturing transaction data and ends with an informational output.

Back 4

Transaction Processing

Front 5

The information produced by the system (ie: the financial statements)

Back 5

Output

Front 6

Debits/credits, journal entries, financial statements, etc.

Back 6

Recording

Front 7

Putting things in the best light

Back 7

Structuring

Front 8

Looking at anomalies

Back 8

Analyzing

Front 9

1. Acquire capital
2. Acquire building and equipment
3. Hire and train employees
4. Acquire inventory
5. Advertising and marketing
6. Sell merchandise
7. Collect payments from customers
8. Pay employees
9. Pay taxes
10. Pay vendors

Back 9

10 Business Processes

Front 10

1. Revenue Cycle
2. Expenditure Cycle
3. Production Cycle
4. Human Resources/Payroll Cycle
5. Financing Cycle

Back 10

5 Major Business or Transaction Cycles

Front 11

Used to generate information for both management and external parties.

Back 11

Reporting System

Front 12

Accounting Information Systems' Role in Transaction Processing

Back 12

Effectively and efficiently process data

Front 13

Fast as possible

Back 13

Efficiency

Front 14

Correctness

Back 14

Effectiveness

Front 15

1. Data Input
2. Data Storage
3. Data Processing
4. Information Output

Back 15

4 Major Steps in the Data Processing Cycle

Front 16

Data entered into the computer system either from an external storage device or from the keyboard of a computer.

Data must be collected about each activity of interest, the resource(s) affected by each activity, and the people who participate in each activity.

Back 16

Input

Front 17

Records of company data sent to an external party and then returned to the system as input. (ie: TECO bill tear off/sendback)

Back 17

Turnaround Documents

Front 18

The collection of transaction data in machine-readable form at the time and place of origin. The customer enters the data themselves. (ie: ATM)

Back 18

Source Data Automation

Front 19

Contains the original record of transactions that take place. (ie: purchase orders)

Back 19

Source Documents

Front 20

Stores facts to organize and provide information to you.

Back 20

Data Storage

Front 21

Ledgers used to record the detailed data for any general ledger account that has many individual subaccounts.

Back 21

Subsidiary Ledgers

Front 22

Ledger that contains summary-level data for every asset, liability, equity, revenue, and expense account of the organization.

Back 22

General Ledger

Front 23

The systematic assignment of numbers or letters to items to classify and organize them.

Back 23

Coding

Front 24

Numbering that helps identify anomalies. (ie: checkbooks)

Back 24

Sequence Code

Front 25

Blocks of numbers to represent things. (ie: 88100 Travel)

Back 25

Block Code

Front 26

-Code should be consistent with it's intended use.
-Code should allow room for growth.
-Make coding system as simple as possible.
-Make sure coding is consistent across organizations.

Back 26

Coding Best Practices

Front 27

A list of all general ledger accounts an organization uses with each general ledger account being assigned a specific number.

Back 27

Chart of Accounts

Front 28

A trail starting with the source document that supports the transaction all the way to the final posting in the general ledger to the financial statements provided by accounting data and records. Provides a means to check the accuracy and validity of ledger postings.

Back 28

Audit Trail

Front 29

Something about which information is stored (ie: employees, inventory items, customers)

Back 29

Computer-Based Storage Concepts: Entity

Front 30

What each entity has, or characteristics of interest which need to be stored.

Back 30

Computer-Based Storage Concepts: Attributes

Front 31

Physical space in which data values are stored.

Back 31

Field

Front 32

Group of fields that contain data about various attributes of the same entity.

Back 32

Record

Front 33

A group of related records.

Back 33

File

Front 34

A file similar to a ledger in a manual AIS. A permanent file of records that stores cumulative information about an organizations' resources and agents with whom it interacts.

Back 34

Master File

Front 35

A file that contains the individual business transactions that occur during a specific fiscal period.

A file similar to a journal in an manual AIS. (ie: sales, cash receipts, purchase, cash payments, general, adj/closing entries).

Back 35

Transaction File

Front 36

-Updating Data
-Viewing Data
-Adding Data
-Deleting Data

Back 36

File Processing/Maintenance

Front 37

Systems that are designed to integrate all aspects of the organization's operations with its traditional AIS.

Back 37

Enterprise Resource Planning (ERP)