Chapter 1: Accounting Information Systems: An Overview

Vocabulary flashcards covering key concepts from Chapter 1 on Accounting Information Systems.

Useable

Information that is easy to use for different tasks and is readable by both humans and machines.

Verifiable

Information that would yield the same result when produced by two independent, knowledgeable people.

Cloud computing

Remote access to software, hardware, and application environments powered by modern global telecommunications networks.

Accounting Information System (AIS)

An integrated system that collects, stores, processes, and reports financial and other data to support decision making and controls.

AIS components

People; procedures and instructions; data; software; information technology infrastructure; internal controls and security measures.

Machine-readable data

Data formatted so that a computer can automatically read and process it.

Value of information

Value = benefits produced by the information minus the cost of producing it.

Business process

A structured sequence of activities designed to achieve a specific goal.

General ledger and reporting system

Information-processing activities that update the general ledger and produce reports for management and external parties.

Information system

The combination of people and technologies involved in data processing within an organization.

Goal congruence

When a subsystem's goals are aligned with the organization’s overall goals.

Primary goal of data analytics

To discover, interpret, and apply meaningful patterns in data to improve business performance.

Information overload

Exceeding information capacity, leading to poorer decision-making and higher costs.

Expenditure cycle

The business cycle in which a company buys inventory or raw materials, often paying cash or promising to pay later.

Accounting

Recording and analyzing an organization's financial transactions.

Transaction processing

Capturing, processing, storing, and producing information outputs (e.g., managerial reports or financial statements).

Goal conflict

When a subsystem’s goals conflict with another subsystem’s goals or the system as a whole.

Available

Information that is available when needed, in a format that is easy and quick to use.

Production cycle

The business cycle where raw materials are transformed into finished goods.

Artificial Intelligence (AI)

AI involves learning, reasoning, and self-improvement processes to improve performance.

Data dashboard

A visual display of important data points and key performance indicators.

HR/payroll cycle

The business transaction cycle involving hiring, training, compensating, evaluating, promoting, and terminating employees.

Virtualization

Running multiple systems simultaneously on one physical computer.

Decision-making quality and information

Decision-making quality generally improves with increased quantity and quality of information.

Revenue cycle

The business transaction cycle where goods or services are sold for cash or a promise to receive cash.

Give-get exchanges

Business exchanges where organizations give and receive value, typically with a limited number of distinct exchanges, each occurring multiple times.