I. Organizational Needs Assessment

Front 1

What does the phrase Information Technology mean?

Back 1

a general term that encompasses many different computer-related components

Front 2

What are the 5 most important components of IT?

Back 2

1) Hardware

2) Software

3) Data

4) Network

5) People

Front 3

What is Business Information System?

Back 3

• the most basic & vital IT component of any business
• set of software

Front 4

What are the 4 categories of BIS?

Back 4

1) Transaction Processing Systems

2) Enterprise Resource Planning Systems

3) Decision Support Systems

4) Executive Information Systems

Front 5

What is Hardware?

Back 5

• the actual physical computer or computer peripheral device
• Ex - a PC, a disk drive, monitor

Front 6

What is Software?

Back 6

• includes the systems & programs that process data & turn that data into information
• can be for general use (Microsoft Word) or specialized use (audit program)
• can be developed internally or purchased

Front 7

What are the 3 categories of Software?

Back 7

1) System Software

2) Program Languages

3) Application Software

Front 8

What is a Network?

Back 8

made up of the communication media that allows multiple computers to share data & information

Front 9

What is the People component of IT?

Back 9

• many people are associated with IT
• there are always the functions of initial setup & maintenance/support after initial setup
• functions may be outsourced to other organizations

Front 10

What is the Data/Information component of IT?

Back 10

• Data = raw facts
• Information = created from data that have been processed & organized

Front 11

What are the 4 primary roles in a BIS?

Back 11

1) To process detailed data.

2) To provide information used for making daily decisions.

3) To provide information used for developing business strategies

4) To take orders from customers.

Front 12

BIS may be divided into what 4 systems?

Back 12

1) sales & marketing systems

2) manufacturing & production systems

3) finance & accounting systems

4) human resources systems

Front 13

What is the first step in processing business transactions?

Back 13

• Data Capture
• relevant data must be captured for each event
• in a manual system, a source document is created (invoice, purchase order)
• in a computerized system, this info is often entered directly into the system

Front 14

What are the 2 forms of Data Capture?

Back 14

1) Manual Entries

2) Source Data Automation

Front 15

What are Manual Entries?

Back 15

• data is physically input by individuals
• the data entry screen often retains the same name & layout as the paper source document it replaced

Front 16

What is Source Data Automation?

Back 16

• devices that capture transaction data in machine-readable form at the time & place of their origin
• ATM, POS, barcode scanners

Front 17

What are the 2 techniques that help ensure that data is captured accurately & completely?

Back 17

1) Well-Designed Input Screens

2) Auto-Entry Fields

Front 18

What are components of Well-Designed Input Screens?

Back 18

• request all required data & guide the data entry person in entering correct data
• validation rules & clear error messages
• drop down lists
• input masks

Front 19

What are components of Auto-Entry Fields?

Back 19

• pre-printed or pre-numbered source documents
• automatic system assignment of sequential numbers prevents duplication of document numbers or skipping numbers

Front 20

What are the 5 functions a BIS allows a business to perform on data?

Back 20

1) Collect

2) Process

3) Store

4) Transform

5) Distribute

Front 21

Who sets up a BIS?

Back 21

• hardware technicians
• network administrators
• software developers

Front 22

What BIS is most important to an accountant?

Back 22

Accounting Information System

Front 23

What is an AIS?

Back 23

• a type of mgmt information system
• partly a transaction processing system & partly a knowledge system
• may be separate systems (modules) for each accounting function (AP, AR, Cash)
• creates an audit trail

Front 24

What is an Audit Trail?

Back 24

allows a user to

• trace a transaction from a source document to the ledger
• vouch from the ledger back to the source document

Front 25

What are the 5 objectives of an AIS?

Back 25

1) record valid transactions

2) properly classify those transactions

3) record the transactions at their proper value

4) record the transactions in the proper accounting period (cutoff)

5) properly present the transactions & related information in the FS of the organization

Front 26

What are the 7 sequence of events in an AIS?

Back 26

1) data is entered in AIS

2) original paper source document is filed

3) transactions are recorded in the appropriate journal

4) transactions are posted in the GL

5) TB is prepared

6) adjustments, accruals, & corrections entered

7) FS are generated

Front 27

What are the 5 Transaction Cycles?

Back 27

1) Revenue Cycle

2) Expenditure Cycle

3) Production Cycle

4) HR/Payroll Cycle

5) Financing Cycle

Front 28

What is the Revenue Cycle?

Back 28

associated with the sales of goods or services that produce cash or other assets, includes:

1) custom orders & credit verification

2) AR

3) cash receipts

Front 29

What is the Expenditure Cycle?

Back 29

associated with the purchase of goods or services that use cash of produce debt, includes:

1) Purchasing

2) Inventory Control (WIP)

3) AP

4) Cash Disbursements

Front 30

What is the Production Cycle?

Back 30

associated with the conversion of resources into products or services, includes:

1) Product Design & Production Planning

2) Product Manufacturing

3) Inventory Control (finished goods)

Front 31

What is the HR/Payroll Cycle?

Back 31

associated with all phases of employee administration, includes:

1) HR (hire, evaluate, administer benefits)

2) Time & Attendance

3) Payroll Disbursements

4) Payroll Tax Reporting

Front 32

What is the Financing Cycle?

Back 32

associated with equity & debt financing including the issuance of stock or debt, payment of dividends or debt service payments, etc

Front 33

Data Processing is divided into what 4 functional areas?

Back 33

1) Data Input

2) Data Storage

3) Data Processing

4) Information Output

Front 34

What are Source Documents?

Back 34

• purchase orders, customer orders, time sheets
• documents may be either manual or computer generated

Front 35

What are Turnaround Documents?

Back 35

• preprint data in machine-readable form
• the document is sent to the customer along with the invoice or statement
• when customer remits payment, the turnaround document is included

Front 36

How are Journals & Ledgers used?

Back 36

data is entered into an AIS first to journals, & summarized into ledgers

Front 37

What are the 3 types of Coding?

Back 37

1) Sequence Codes

2) Block Codes

3) Group Codes

Front 38

What are Sequence Codes?

Back 38

• used to ensure that all transactions or documents are accounted for
• a list of transactions should include neither duplicates or gaps in the number sequence
• ex - check numbers, invoice numbers

Front 39

What are Block Codes?

Back 39

• uses blocks of numbers to group similar items
• makes finding relevant accounts easier & can help minimize errors in data entry
• ex - 100-199 liabilities, 200-299 inventory, etc

Front 40

What are Group Codes?

Back 40

different groups of numbers have meaning

Front 41

What is a Chart of Accounts?

Back 41

• represents a form of coding that summarizes accounting data by ledger classification (assets, liabilities, revenues, expenses)
• allows the business to customize classification of data in the ways that best meet the requirements of the business

Front 42

What are the 2 Data Processing methods?

Back 42

1) Batch Processing

2) Online Real-Time Processing

Front 43

What is Batch Processing?

Back 43

occurs when transactions are recorded but master files are only updated periodically, such as daily

Front 44

What is Online Real-Time Processing?

Back 44

occurs when transactions are recorded & master files are immediately updated in real-time

Front 45

What are 3 types of Information Output?

Back 45

1) Documents (checks, purchase orders, receipts)

2) Reports (sales analysis, FS)

3) Query

Front 46

What is a limitation of Batch Processing?

Back 46

always a time delay between the time the transaction is initiated & the time that it is fully processed

Front 47

What are POS Systems?

Back 47

• use scanners to capture data encoded on product bar codes & then transmit that data over a LAN or other network to a central database
• generally connected to an electronic cash register that also feeds data to the central database

Front 48

What is Online Analytical Processing?

Back 48

allows end users to retrieve data from a system & perform analysis using statistical & graphical tools

Front 49

What is Centralized Processing?

Back 49

centralized processing environments maintain all data & perform all data processing at a central location

Front 50

What is Decentralized Processing?

Back 50

• occurs when computing power, applications, & work are spread out (or distributed) over many locations
• each remote computer performs a portion of the processing , thus reducing the processing burden on the central computer

Front 51

What are Periodic Scheduled Reports?

Back 51

• the traditional reports that display information in a predefined format
• made available on a regular basis
• may be automatically printed, or may be made available via report-printing software

Front 52

What are Exception Reports?

Back 52

• produced when a specific condition or exception occurs
• specific criteria are established, & any transaction that meets the criteria is reported on the exception report

Front 53

What are Demand Reports?

Back 53

• available on demand
• sometimes referred to as a response report because an end user can log onto a workstation & obtain a response in the form of a report without waiting for scheduled report creation

Front 54

What are Ad Hoc Reports?

Back 54

one that does not currently exist, but that can be created on demand, without having to get a software developer involved

Front 55

What is a Query?

Back 55

a set of criteria that the end user can send to the system to extract all transactions or other information that meet these criteria

Front 56

What are Push Reports?

Back 56

• information can be "pushed" & sent to a computer screen
• if a report window displays up-to-date reports every time an end user logs into a computer network, the reports would be considered push reports

Front 57

What are Dashboard Reports?

Back 57

• used by an organization to present summary information necessary for mgmt action
• designed to be visual quick references

Front 58

What is XBRL?

Back 58

• an open, royalty-free, internet-based information standard for business reporting of financial data
• XBRL tags define the data so that users can create macros that can automate analysis of data