Accy 310

Comprehensive Final Exam Study Guide

What is AIS?

Accounting Information System
a structure that a business uses to collect, store, manage, process, retrieve, and report its financial data

Accounting Cycle

Economic Event, Journal, Ledger, Financial Statemetns

AIS Model

Input-Process-Output

Useful Information

Relevance (Predictive value Feedback value Timeliness), Reliability(Verifiable Faithful Representation Complete Neutral)

Discretionary vs. Mandatory Information

Discretionary:Not required, information worth the cost?, will pay more money for, Mandatory: Required, want to pay less money for

Accountants' Roles in AIS

User, Manager, Designer, Implementor, evaluators/auditors

Information Value Chain

Business Need/Event, Data, Information, Knowledge, Decision

Supply Chain

Flow of materials, information, payments, and services from raw materials suppliers, through factories/warehouses, all the way to final customer

Customer Relationship Management

Software that helps the firm interact with customers

What is a database?

A collection of like and sequenced data

Why are databases important to accountants?

Databases are important to Accountants, because technology and the roles of accountants is changing. To properly manage a company, you have to understand the data and process of the company. Helps with audits

DBMS/RDBMS/MDBMS

DBMS:Database Management System, RDBMS:Relational Database Management System, MDBMS:Multidimensional Database Management System

Enterprise Systems

ERP (Enterprise Systems Planning), CRM (Customer Relationship Management), and SCM (Supply Chain Management)

Steps in developing a database

Analysis, Conceptual Design, Logical and Physical Design, Implementation, Testing, Operation

R-E-A

Resources, Events, Agents

Sales & Collections Process

the set of processes that begin when a customer purchases goods or services and ends when your business receives payment in full.

Business Rules

Ensure that processes are performed consistently & accurately (Guided by organizational objectives, Act as constraints on the process,Used to help implement controls)

Decision Tables

A compact way to present decision-based rules with several potential criteria and decision outcomes List out each combination of conditions

Keys

Foreign Key:Primary Key of another table used to link, Primary Key: Unique record in file

Cloud Computing

Using redundant servers in multiple location to host virtual machines

Class Models (UML Class Diagrams)

graphical view of the data structures and their associations with each other

Classes

Separate identifiable collect of things/objects about which the organization wants to collect and store information

Associations

Direct(Resource to Event & Event to Agent), Indirect (Resource to Agent)

Multiplicities

define the nature of the association One-to-one One-to-many Many-to-many

Schema/Subschema

Schema: a is simply a layout (map or plan) of the entire database (entire AIS), Subschema:focuses on a more specific area of interest within the overall database(AP)

Data Normalization

the process in which unstructured accounting data from various accounting platforms is pulled to reconstruct financial statements without the loss of data

Database Entities

persons, places, events, objects, or concepts, such as a university course, job, or online order. A database can record and describe each of these, so they're all potential database entities

SQL

Structured Query Language

DDL/DML

DDL:Data definition language,DML:Data manipulation language

Queries

Views, Retrieve Data

OLAP

Online Analytical Processing, a technology that organizes large business databases and supports complex analysis.

ERP

CRM, SCM, ERP (Enterprise Systems Planning), CRM (Customer Relationship Management), and SCM (Supply Chain Management)

Activity Models

Contains visually represented information about activities in the business

BPMN Activity Diagrams

Standards based modeling technique,Also called BPMN Activity Diagram,Created and managed by Object Management Group (OMG)

Activities in BPMN

represent specific steps in the business process,Basic activities are modeled as rounded rectangles

Events in BPMN

Start, Intermediate, End

Gateways in BPMN

Show process branching and merging, often as the result of decisions,

Gateways in the same (swim)lane are

Data Objects

Only available during this process

Data Stores

Available across processes

Message (Throw):

A message is sent out

Intermediate & End

Black Envelope

Pools

Indicate separate entities (i.e., vendor, customer, etc.)

Pools are separated by a gap between entities

Lanes

(swimlanes)Indicate different departments/functions within the primary organization of interest

Lanes are connected within the larger organizational pool (no gap)

Participants

represent companies, departments, or roles who are involved in a collaboration

Collaboration Activity Diagram

Add external pool(s) if required (Main focus is still on the business of interest)

Break main pool into (swim)lanes if required (Start focusing on the various responsibilities)

Add additional detail to help clarify

(Break activities down

add gateways, events, data stores)

Purchasing Cycle Outputs

Financial Statements Info, Vendor Checks, Check Register, Discrepancy Reports, Cash Requirements Forecast

Sales/Collection Outputs

Financial Statements, Customer Billing, Aging Report, Bad Debt Report, Cash Receipt Forecast, Approved Customer Listing Report, Sales Analysis Reports

Sales Potential for Fraud

Lapping (use rotation of duties and forced vacations to prevent)

Choreography

Examining, Refining, and Organizing data for the use of decision making

Orchestration

the movement between lanes in diagrams

Structure Models

UML Class Model or entity-relationship model

visually representing the structure of a business

Business Processes

an activity or set of activities that accomplish a specific organizational goal

Key Process Objectives

Business Analysis

disciplined approach for introducing and managing change to organizations

Referential Integrity Rule

Data in a foreign key must match primary key of the related table

Foreign key can be null

Internal controls

refer to accounting policies and auditing procedures that ensure that the accounting information of a company are accurate

Purchase & Payments Process

Include business activities related to buying inventory from supplies, maintaining supplier records, and making payments to suppliers for trade accounts payable whistle taking appropriate purchase discounts.Record purchases, accounts payables, and cash disbursements

Conversion Process

More complex than sales/collections and purchases/payment GAAP and management purpose

Codes (types and uses)

Minimum Multiplicities

0 or 1

UML primary keys

no null

T or F: Database can have different amount of tables and classes

True

T or F: Each attribute has to have just one name

True

T or F: AIS is REA

True

What does (\*) in SQL mean?

all fields selected

What do UML diagrams describe?

logical structure of business processes

T or F: SQL ORDERBY clause can be used to order

True

What are UML attributes are characteristics of?

individual instance of a class

T or F: WHERE SQL clause can be used to link two tables

T

T or F: Lanes are functions or departments

True

Outbound Logistics

focuses on the demand side of the supply-demand equation.

The process involves storing and moving goods to the customer or end user.

The steps include order fulfillment, packing, shipping, delivery and customer service related to delivery.

Documentation

Anything that provides evidence for a transaction, who has performed each action pertaining to a transaction, and the authority to perform such activities

T or F: Business rules constrain the Business Processes

True

What shape depicts BPMN events?

circles

What do Accountants optimize?

decision making

Data vs Info

Data:Raw Facts lacking context

\
Information:Data that has been processed and is now useful

Does ES facilitate ddecisionescision making?

No

T or F: Activity Models are not new

True

What is Relevant infomation?

predictive, timeliness, feedback

What does REA stand for?

R-E-A: Resources, Events, Agents

Sale/Collection Segregation of Function Three Rules

1) Transaction authorization should be separate from transaction processing

2) Asset custody should be separate from asset record keeping

3) the organization should be so structured that the perpetration of fraud requires collusion between two or more individuals

separating sales function

1) credit authorization separate from SO processing

2) inventory control separate from warehouse

3) accounts receivable sub-ledger separate from general ledger control account

4) cash receipts separate from accounting records

5) accounts receivable sub-ledger separate from general ledger

ROP

reorder point analysis
each item is assigned a reorder pointed based on its sales rate

EOQ

Economic Order Quantity
order quantity based on casts of ordering and carrying inventory

Systems

multiple parts coming together for one cause

Subsystems

multiple systems coming to form a system

Information

Data that has been processed and is now useful

Discretionary Information

Not Required, is the information worth the cost. firms willing to pay more for this type of information than mandatory

Mandatory Information

Required, want to pay less for this type of information than discretionary, lowest cost per information

User

Manager

\

Designer

Implementor

Evaluators/Auditors

What is valuable information?

What multiplicities depict a foreign key?

Many to One, foreign key goes on the many side

DBMS

Database management system

RDBMS

Relational Database Management System

MDBMS

Multidimensional Database Management System

ERP

Enterprise Systems Planning