Accounting Information System Topics

Flashcards covering key vocabulary and concepts related to Accounting Information Systems.

Accounting Information System (AIS)

A systematic method implemented within an organization to gather, maintain, control, and distribute financial and accounting data.

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 decision-making processes.

Business Process

A set of related, coordinated, and structured activities and tasks performed by a person, computer, or machine that help accomplish a specific organizational goal.

Transaction

An agreement between two entities to exchange goods or services measured in economic terms.

Value of Information

The benefits derived from reducing uncertainty, improving decisions, planning, and scheduling, balanced against the costs of producing and distributing information.

Goal Conflict

Occurs when components act in their own interest without regard for the overall goal.

Goal Congruence

Occurs when components acting in their own interest contribute to the overall goal.

Necessary Characteristics of Useful Information

Relevant, reliable, complete, timely, understandable, verifiable, and accessible.

Revenue Cycle

Business process where goods and services are sold for cash or a promise to receive cash in the future.

Expenditure Cycle

Business process involved in obtaining goods or services in exchange for cash or promises to pay.

Production Cycle

Business process where raw materials are transformed into finished goods.

Human Resources/Payroll Cycle

Business process that involves hiring, training, compensating, and terminating employees.

Predictive Analytics

Techniques used to analyze current and historical data to predict future outcomes.

Financial Reporting and Analysis

The process of generating financial statements and conducting analysis for decision-making and compliance.

Supply Chain

A network between a company and its suppliers to produce and distribute a specific product.

Information Technology (IT)

The use of computers and other electronic devices to store, retrieve, transmit, and manipulate data.

Give-Get Exchange

A type of business transaction measured in economic terms, typically between two entities.

Decision-Making Process

A process involving identifying situations requiring action and providing accurate and timely information to improve outcomes.

Internal Controls

Processes put into place to safeguard an organization's assets and data.