Accounting Information System Overview

A collection of key vocabulary terms and definitions related to the Accounting Information System and its components.

Accounting Information System (AIS)

A system that collects, records, stores, and processes financial and accounting data.

Data

Raw facts that are processed to produce information.

Information

Processed data that is meaningful and useful for decision-making.

Value Chain

A series of steps that a company takes to transform raw materials into a final product, from acquisition to delivery.

Artificial Intelligence (AI)

The simulation of human intelligence processes by computer systems.

Data Analytics

The use of software and algorithms to discover, describe, interpret, communicate, and apply meaningful patterns in data.

Supply Chain

An extended system that includes an organization’s value chain as well as its suppliers, distributors, and customers.

Primary Activities

Activities in the value chain that are directly related to the creation and delivery of products and services, including inbound logistics, operations, outbound logistics, marketing/sales, and service.

Support Activities

Activities that assist primary activities in helping an organization achieve its competitive advantage.

Transaction Processing

The method by which an AIS processes financial transactions.