Chapter 1 - Introduction To Accounting Systems

Front 1

System

Back 1

A set of interdependent elements that together accomplish specific objectives.

Front 2

Subsystem

Back 2

A system within a system.

Front 3

Information System (IS), Management Information System (MIS)

Back 3

A man-made system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users.

Front 4

Accounting Information System

Back 4

A subsystem of an IS that collects, processes, and reports information related to the financial aspects of business events.

Front 5

Operations Process

Back 5

A man-made system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization.

Front 6

Management Process

Back 6

A man-made system consisting of the people, authority, organization, policies, and procedures whose objective is to plan and control the operations of the organization.

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Information

Back 7

Data that are presented in a form that is useful in a decision-making activity.

Front 8

Data

Back 8

Facts or figures in raw form.

Front 9

Understandability

Back 9

Enables users to perceive the information's significance.

Front 10

Relevance

Back 10

Capable of making a difference in a decision-making situation by reducing uncertainty or increasing knowledge for that particular decision.

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Timeliness

Back 11

Information that is available to a decision maker before it loses its capacity to influence a decision.

Front 12

Predictive Value or Feedback Value

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Improves a decision-maker's capacity to predict, confirm, or correct earlier expectations.

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Neutrality or Freedom from Bias

Back 13

A principle that the information is objective.

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Comparability

Back 14

The information quality that enables users to identify similarities and differences in two pieces of information.

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Validity

Back 15

Information about actual events and objects.

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Accuracy

Back 16

The correspondence or agreement between the information and the actual events or objects that the information represents.

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Completeness

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The degree to which information includes data about every relevant object or event necessary to make a decision and includes that information only once.

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Matrix

Back 18

A tool designed to help you analyse a situation and relate processes to desired results.

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Decision Making

Back 19

The process of making choices, which is the central activity of all management.

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Structured Decisions

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Decisions that are relatively repetitive or routine.

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Unstructured Decisions

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Decisions that are non-repetitive or happen infrequently.

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Enterprise Database

Back 22

The central repository for all the data related to the enterprise's business activities and resources.

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Effectiveness

Back 23

Deals with information being relevant and pertinent to the business process as well as being delivered in a timely, correct, consistent, and usable manner.

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Efficiency

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Concerns the provision of information through the optimal (most productive and economical) use of resources.

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Confidentiality

Back 25

Concert the protection of sensitive information from unauthorized disclosure.

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Integrity

Back 26

The accuracy and completeness of information as well as to its validity in accordance with business values and expectations.

Front 27

Availability

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Relates to information being available when required by the business process now and in the future. It also concerns the safeguarding of necessary resources and associated capabilities.

Front 28

Compliance

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Deals with complying with the laws, regulations, and contractual arrangements to which the business process is subject - that is externally imposed business criteria, as well as internal policies.

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Reliability

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Relates to the provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities.

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Consistent

Back 30

Comparing the same object or event collected at two points in time.