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Summary Accounting Information Systems Chapter 1 — Accounting Information Systems: an overview System: a set of two or more interrelated components that interact to achieve a goal. Most systems are composed of smaller subsystems that support the larger system.

The larger the organization and the more complicated the system, the more difficult to achieve goal congruence. Data : facts that are collected, recorded, stores and processed by an information system. Information: data that have been organized and processed to provide meaning and improve decision-making. Users make better decisions as the quantity and quality of information increase.

Information overload : exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision-making quality and an increase in the cost of providing information. Information technology IT : The computers and other electronic devices used to store, retrieve, transmit and manipulate data. Value of information : the benefit produced by information less the cost of producing it.

Benefits of information include reduced uncertainty, improved decisions and improved ability to plan and schedule activities. Relevant Reduces uncertainty, improves decision-making or confirms or correct prior expectations.

Reliable Free from error or bias; accurately represents organization events or activities. Complete Does not omit important aspects of the events or activities it measures. Timely Provided in time for decision-makers to make decisions. Understandable Presented in a useful and intelligible format.

Verifiable Two independent, knowledgeable people to produce the same information. Accessible Available to users when they need it and in a format they can use. Business process: a set of related, coordinated, and structured activities and tasks that are preformed by a person, a computer or a machine that help accomplish a specific organizational goal. Transaction : an agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization.

Transaction processing : the process of capturing transaction data, processing it, storing it for later use and producing information output, such as managerial report or a financial statement. Give-get exchange : transactions that happen a great many times, such as giving up cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor. Business process or transaction cycles The major give-get exchanges that occur frequently in most companies. Revenue cycle Goods and services are sold for cash or a future promise to receive cash.

Expenditure cycle Companies purchase inventory for resale or raw materials to use in producing products in exchange for cash or a future promise to pay cash. Production or conversion cycle Raw materials are transformed into finished goods. Financing cycle. Do you make summaries or do you have any completed assignments? Upload your documents to Knoowy and earn money.

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View all your notifications. Add document to cart. Study Documents Study Services. Accounting Information Sysetm Summary. Mariska van Elderen 1 documents uploaded 1 documents sold Send message Follow. Upload document. Accounting Information Systems. Summary Accounting information systems and internal control 2nd ed. Accounting Information Systems - Romney en Steinbart.

Samenvatting Accounting information system. Accounting Information Systems and Internal Control. Accounting information systems samenvatting. Algemene Grondslagen Starreveld; bestuurlijke informatieverzorging - Leeuwen en Bergsma. Knoowy Report abuse Contact. Terms Terms of use Privacy policy Copyright. Social media Facebook Twitter Instagram. New password E-mail address. Language English. Register now and claim your credit.


Accounting Information Sysetm Summary



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