Accounting Information Systems - Chapter 1 Overview

Flashcards covering key vocabulary and concepts from the Accounting Information Systems lecture notes.

System

A set of detailed methods, procedures, and routines that carry out specific activities, perform a duty, achieve goals or objectives, or solve problems.

Goal conflict

Occurs when a subsystem’s goals are inconsistent with the goals of another subsystem or the system as a whole.

Goal congruence

Achieved when a subsystem achieves its goals while contributing to the organization’s overall goal.

Data

Facts collected, recorded, and stored in a system.

Information

Data that have been organized and processed to provide meaning and context which can improve the decision-making process.

Information Overload

When too much information impairs decision-making quality.

Value of Information

The benefits exceed the costs of gathering, maintaining, and storing the data.

Machine-readable

Data is most useful when it is in a __ format that can be read and processed by a computer.

XBRL

eXtensible Business Reporting Language - a taxonomy that structures business information for communication between business systems.

Business Process

A set of related, coordinated, and structured activities and tasks performed by people, machines, or both to achieve a specific organizational goal.

Business Transaction

An agreement between two entities to exchange goods, services, or any other event that can be measured in economic terms by an organization.

Transaction Processing

Transaction data is used to create financial statements and is called

Revenue Cycle

Give goods / give service - get cash.

Expenditure Cycle

Get goods / get service - give cash.

Production Cycle

Give labor and give raw materials - get finished goods.

Human Resources/Payroll Cycle

Give cash - get labor.

Financing Cycle

Give cash - get cash

Accounting Information System (AIS)

A system that collects, records, stores, and processes data to produce information for decision makers.

Artificial Intelligence (AI)

The use of computer systems to simulate human intelligence processes such as learning, reasoning, and self-improvement.

Data Analytics

The use of software and algorithms to find and solve problems and improve business performance.

Blockchain

Individual digital records, called blocks, linked together using cryptography in a single list, called a chain.

Cloud Computing

The use of a browser to remotely access software, data storage, hardware, and applications.

Virtualization

Running multiple systems simultaneously on one physical computer.

Internet of Things (IoT)

Embedding of sensors in a multitude of devices so that those devices can connect to the Internet.

Value Chain

Links together the different activities within an organization that provide value to the customer.

Primary Activities

Provide direct value to the customer.

Support Activities

Enable primary activities to be efficient and effective.

Supply Chain

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