Test Bank for Accounting Information Systems, 15th Edition(Marshal Romney, 2020), All Chapters | Complete Guide A+
Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart, Summers, Wood all chapters.
Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart, Summers, Wood all chapters || Complete Solution.
All for this textbook (49)
Written for
Rijksuniversiteit Groningen (RuG)
Bedrijfskunde: Accountancy & Controlling
Internal Control (EBB048A05)
All documents for this subject (4)
Seller
Follow
mahof
Content preview
Chapter 1: Accounting information systems: An overview
System: A set of detailed methods, procedures, and routines that carry out specific activities, perform a
duty, achieve goals or objectives, and solve one or more problems. Most systems are composed of smaller
subsystems that support the larger system.
Goal conflict: occurs when a subsystem's goals are inconsistent with the goals of another subsystem or
those of the system as a whole.
Goal congruence: occurs when a subsystem achieves its goal while contributing to the organization's
overall goal.
Data: facts that are collected, recorded, stored, and processed by an information system.
Information: data that have been organized and processed to provide meaning and context that can
improve the decision-making process.
Machine-readable: data in a format that can be processed by a computer.
Information overload: exceeding the amount of information a human mind can absorb and process,
resulting in a decline in decision-making quality and an increase in the cost of providing information.
Information technology (IT): the computers and other electronic devices used to store, retrieve, transmit,
and manipulate data.
Value of information: the benefit provided by information – the cost of producing it.
Information system: the people and technologies in an organization that produce information.
Business process: a set of related, coordinated, and structured activities and tasks that are performed by a
person, a computer, or a machine and that help accomplish a specific organizational goal.
Transaction: an agreement between two entities to exchange goods or services, such as selling inventory
in exchange for cash; any other event that can be measured in economic terms of an organization.
Transaction process: a process of capturing transaction data, processing it, storing it for later use, and
producing information output, such as a managerial report or a financial statement.
Give-get exchange: transactions that happen a great many times, such as giving up cash to get inventory
from a supplier and giving employees a paycheck in exchange for their labor.
Business processes or transaction cycle: The major give-get exchanges that occur frequently in most
companies.
1. Revenue cycle: activities associated with selling goods and services in exchange for cash or a
future promise to cash.
2. Expenditure cycle: activities associated with purchasing inventory for resale or raw materials in
exchange for cash or a future promise to pay cash.
3. Production cycle (conversion cycle): where raw materials are transformed in finished goods
, 4. Human resource/payroll cycle: where employees are hired, trained, compensated, evaluated,
promoted, and terminated.
5. Financing cycle: where companies sell shares in the company to investors and borrow money,
and where investors are paid dividends and interest is paid on loans.
General ledger and reporting system: Information processing operations are involved in updating the
general ledger and preparing reports for both management and external parties.
Accounting information system (AIS): a system that collects, records, stores, and processes data to
produce information technology infrastructure, and internal controls and security measures. An AIS
processes data to produce information for decision-makers.
Accounting: The systematic and comprehensive recording of an organization's finance transactions,
including summarizing, analyzing, and reporting these transactions to all users.
Six components of AIS:
- The people who use the system;
- The procedures and instructions used to collect, process, and store data;
- The data about the organization and its business activities;
- The software used to process the data;
- The information technology infrastructure, including the computers, devices, and network
communications devices used in the AIS;
- The internal controls and security measures that safeguard AIS data.
-
These components enable an AIS to fulfill three important business functions:
1. Collect and store data;
2. Transform data into information;
3. Provide adequate controls to safeguard.
-
A well-designed AIS can add value to an organization by:
1. Improving quality and reducing the cost of products or services;
2. Improving efficiency;
3. Sharing knowledge;
4. Improving efficiency and effectiveness of its supply chain;
5. Improving the internal control structure;
6. Improving decision-making.
Artificial intelligence (AI): the use of computer systems to simulate human intelligence processes such as
learning, reasoning, and self-improvement.
Data analytics: use of software and algorithms to find and solve problems and improve business
performance.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mahof. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.83. You're not tied to anything after your purchase.
