Accounting Information Systems Ch1

What is AIS

study of systems that produce accounting information

what is information

data organized in a useful

what is accounting information

quantative information about performance or position about a busienss

what are the componenets of information systems

hardware, soft ware databases, networks and peole

what does a info system do (3 major steps)

capture raw data, process and store, report information

How is an AIS different

specific to accounting and financial data

What is a busienss model

company’s plan for operations and making a profit

what is the business process

group of related business events that are designed to accomplish the objective of the business

what are the three primary types of business processes

acquisition and payments, conversion, marketing and sales/collection process

business event

result in economic activity typically are operating event, financing, investing and information (noneconomic)

transaction based system

more integrated now but record both accounting transactions and business eventsa

acquisition and payment process

getting resources company need to operate include financing, pp and e employees, inventory

conversion process

adding value to good/services to make them something customers will buy (heart business process)

marketing and sales

generating revenue and collection of cash

what are the four things managment oversees in the business process

planning, implementing, monitoring and changing/improvingk

key performance indicators

metrics to evaluate the sucess of a company

data driven decision making

principals of quality of info to the context needed for AIS decision making activities

what are the two fundamental characteristics of useful information

relevance and faithful rep

what are the qualities of relevance

predictive value (applicable for future), confirmatory value (confirm previous decision) materiality (significant)

what are the qualities of faithful representation

complete, neutral and error free

what are the four enhancing characteristics of useful info

verifiability, timeliness, understandability, and comparability

what is reporting

aggregation of data for activities and performancew

what is data analytics

using tech to transform raw data to useful informationd

data analytics in accounting

use ratio to compare performance overtime