AIS test 1

inflormation that flows downward from senior management to junior managers. examples include instructions, quotas and budgets

• 1) trading partners--exchanges include sales, billing, supplies
• 2) stakeholders--entities with a direct interest in the organization

• 1) more than one component
• 2) must serve a common purpose
• 3) system vs. subsystem
• 4) serve at least one purpose

the set of formal procedures by which data are collected, procedded into information and distributed to users

• 1) a transaction is an event that affects or is of interest to the organization and is procedded by its information system as a unit of work
• 2) types: financial and nonfinancial

• 1) transaction processing system (TPS)
• 2) general ledger/ financial reporting system (GL/FRS)
• 3) management reporting system (MRS)

supports daily business operations with numerous reports, documents and messages

produces the traditional finanacial statements

• provides internal managemetn with special-purpose financial reports and information needed for decision making
• i.e. budgets, variance reports and repsonsibility reports

are facts, whcih may or may not be processed and have no direct impact of the end user

causes the user to take an action that he or she otherwise could not, or would not, have taken. more simply, processed data

• 1) data collection
• 2) data processing<-->database management
• 3) information generation
• 4) feedback/external end users

• 1) to support the stewardship of management
• 2) to support management decision making
• 3) the support the firms day-to-day operations

are completely finisked and tested systems that are read for implementation. usually purchased

consist of a basic system stucture on which to build. the logic is preprogrammed and is tailored to suit the business

are custom system the client organizations purchase commercially rather than develop in house

• 1) purchasing--ordering inventory
• 2) receiving--accepting the inventory
• 3) stores--takes custody of the inventory

• 1) production planning--scheduling
• 2) quality control
• 3) maitenance

all data processing is performed by one ore more large computers housed at a central site that serves users throughout the organization

reorganizing the IT finction into small information processing units (IPU) that are distributed to end users and placed under their control

• 1) loss of control
• 2) inefficient use of resources
• 3) destruction of audit trails
• 4) increased potenial for errors, failures and the lack of standards

• 1) cost savings
• 2) increased user satisfaction
• 3) operational efficiency

an environment in which individual data files are not related to other files. end users own their own data. involve large mainframe computers

• 1) data storage-multiply storage to share documents
• 2) data updating-increased cost due to separate files
• 3) currency of information-outdated info

centralizes the organizations data into a common database that is shared by other users

an accounting framework for modeling an organizations critical resources, events and agents (REA) and the relationships between them

• an information system model that enables an organization to automate and integrate its key business processes.
• 1) allows data sharing, information flows, common business practices

• 1) revenue
• 2) expenditure
• 3) conversion

• A) the acquisition of materials, property, and labor in exchange of cash
• 1) accounts payable system
• 2) cash disbursements system
• 3) payroll system
• 4) fixed asset system

• a) raw materials to finsihed products
• 1) production system-planning, scheduling, and control
• 2) cost accounting system-monitors the flow of cost information related to production

• A) processing cash sales, credit sales and the receipt of cash
• 1) sales order processing-credits
• 2) cash receipts

are used to capture and formalize transaction data that the transaction cycle needs for processing

are the result of transaction processing rather than the triggering mechanism for the process

are product documents of one system that become source documents for another system

• 1) master file
• 2) transaction file
• 3) reference file
• 4) archive file

generally contains account data. updated from transactions

is a temporary file of transaction records used to change or update data in a master file

stores data that are used as standards for processing transactions

contains records of past transactions that are retained for future reference

uses symbols to represent the entities, processes, data flows and data stores that pertain to a system

is a documentation technique used to represent the relationship between entities

is the graphical representation of the physical relationships among key elements of a system

is a group of similar transactions that are accumulated over time and then processed together

• 1) improve operational efficiency
• 2) provides control over the transaction process

assemble transactions into groups for processing. there is always a time lag

process transactions individually at the moment the event occurs

• 1) sequential codes
• 2) block codes
• 3) group codes
• 4) alphabetic codes
• 5) alphanumeric codes
• 6) mnemonic codes

• represent items in some sequential order
• 1) advantages-gaps in numbers alerts management
• 2) disadvantages-carry no info beyond the order

• is a variation on sequential coding that partly remedies. includes a chart of accounts
• 1) advantages-insertion of new codes
• 2) content not readily apparent

• used to represent complex items or events involving two or more pieces of related data
• 1) advantages
• a) facilitate the representation of large amounts of data
• b) allow complex data structures to be represented in hierarchal form
• c) detailed analysis
• 2) disadvantages-over used

• can be the same as numeric codes
• 1) advantages- capacity to represent large numbers of items increases dramatically
• 2) disadvantages-difficulty rationaling the meaning

• alphabetic characters in the form of acronyms anf other combinations to convey meaning
• 1) advantages-does not require the user to memorize meaning
• 2) disadvantages-limited ability to represent items within a class