Accounting Information Systems Lecture Notes

These flashcards cover the key concepts related to Accounting Information Systems as outlined in the lecture notes.

What is an Accounting Information System (AIS)?

A system that applies technology to the capturing, verifying, storing, sorting, and reporting of data relating to an organization’s activities.

What are the main benefits of accounting information?

Reduce uncertainty, improve decisions, enhance planning, and improve scheduling.

What is the accounting cycle?

A series of steps including transaction occurrence, analyzing transactions, journalising, posting to ledger, preparing trial balance, adjusting entries, and preparing financial reports.

What are characteristics of useful information?

Relevance, Reliability, Completeness, Timeliness, Understandability, Verifiability, and Accessibility.

Who are the internal users of accounting information?

Managers at various levels in an organization, including operations management, middle management, and top/strategic management.

What does the input-processing-output (IPG) model in accounting refer to?

It describes how data inputs are processed to produce outputs, focusing on the organization of principles or procedures.

What is the importance of controls in an AIS?

Controls ensure that the system functions as expected, preventing data errors or exceptional circumstances.

What are some methods of data input in an AIS?

Manual keying, scanning via barcode readers, image scanners, magnetic ink character recognition (MICR), voice recognition, and optical mark readers.

What is data classification in the context of an AIS?

The process of determining what information is gathered and aligning it to address business needs.

How does an AIS support decision makers?

By generating diverse financial information that facilitates decisions for both internal and external stakeholders.