ACCOUNTING INFORMATION
SYSTEMS MODEL 2
Accounting information systems - Ans--lacks a well defined body of
knowledge
Sarbanes Oxley Act (SOX) of 2002 - Ans--established new corporate
governance regulations and standards for public companies registered with
the Securities and Exchange Commission (SEC)
external users - Ans--trading partners, stakeholders
information system - Ans--set of formal procedures by which data are
collected, stored, processed into information and distributed to users
distinction between MIS and AIS - Ans--centers on the concept of a
transaction: two classes- financial and nonfinancial transactions
transaction - Ans--an event that affects or is of interest to the organization and
is processed by its information system as a unit of work
three fundamental objectives of information - Ans--1. to support the
stewardship function of management 2. to support management decision
making 3. support the firms day to day operations
financial transaction - Ans--an economic event that affects the assets and
equities of the organization, is reflected in its accounts, and is measured in
monetary terms
nonfinancial transaction - Ans--events that do not meet the narrow definition
of a financial transactions
AIS 3 subsystems - Ans--1. transaction processing system (TPS) 2. general
ledger/financial reporting system (GL/FRS) 3. management reporting
system (MRS)
, transaction processing system - Ans--supports daily business operations
with numerous reports, documents, and messages for users throughout the
organization
general ledger/financial reporting system - Ans--produces the traditional
financial statements, such as the income statement, balance sheet,
statement of cash flows, tax returns, and other reports required by law
management reporting system - Ans--provides internal management with
special-purpose financial reports and information needed for decision
making such as budgets, variance reports, and responsibility reports
MIS - Ans--processes nonfinancial transactions that are not normally
processed y traditional AIS
nondiscretionary reporting (GL/FRS) - Ans--organization has few or no
choices in the information it provides much of the info consists of traditional
financial statements, tax returns, and other legal documents
discretionary reporting (MRS) - Ans--the organization can choose what
information to report and how to present it
end users - Ans--fall into two general groups: external and internal. external
include creditors, stockholders, potential investors, regulatory agencies, tax
returns, and other reports that the firm has a legal obligation to produce.
internal includes management at every level of the organization, as well as
operations personnel, great deal of latitude in the way it meets the needs of
internal users.
data - Ans--facts which may or may not be processed and have no direct effect
on a users actions
information - Ans--causes the user to take an action that he or she otherwise
could not or would not have taken information is determined by the effect it has
on the user, not by its physical form
SYSTEMS MODEL 2
Accounting information systems - Ans--lacks a well defined body of
knowledge
Sarbanes Oxley Act (SOX) of 2002 - Ans--established new corporate
governance regulations and standards for public companies registered with
the Securities and Exchange Commission (SEC)
external users - Ans--trading partners, stakeholders
information system - Ans--set of formal procedures by which data are
collected, stored, processed into information and distributed to users
distinction between MIS and AIS - Ans--centers on the concept of a
transaction: two classes- financial and nonfinancial transactions
transaction - Ans--an event that affects or is of interest to the organization and
is processed by its information system as a unit of work
three fundamental objectives of information - Ans--1. to support the
stewardship function of management 2. to support management decision
making 3. support the firms day to day operations
financial transaction - Ans--an economic event that affects the assets and
equities of the organization, is reflected in its accounts, and is measured in
monetary terms
nonfinancial transaction - Ans--events that do not meet the narrow definition
of a financial transactions
AIS 3 subsystems - Ans--1. transaction processing system (TPS) 2. general
ledger/financial reporting system (GL/FRS) 3. management reporting
system (MRS)
, transaction processing system - Ans--supports daily business operations
with numerous reports, documents, and messages for users throughout the
organization
general ledger/financial reporting system - Ans--produces the traditional
financial statements, such as the income statement, balance sheet,
statement of cash flows, tax returns, and other reports required by law
management reporting system - Ans--provides internal management with
special-purpose financial reports and information needed for decision
making such as budgets, variance reports, and responsibility reports
MIS - Ans--processes nonfinancial transactions that are not normally
processed y traditional AIS
nondiscretionary reporting (GL/FRS) - Ans--organization has few or no
choices in the information it provides much of the info consists of traditional
financial statements, tax returns, and other legal documents
discretionary reporting (MRS) - Ans--the organization can choose what
information to report and how to present it
end users - Ans--fall into two general groups: external and internal. external
include creditors, stockholders, potential investors, regulatory agencies, tax
returns, and other reports that the firm has a legal obligation to produce.
internal includes management at every level of the organization, as well as
operations personnel, great deal of latitude in the way it meets the needs of
internal users.
data - Ans--facts which may or may not be processed and have no direct effect
on a users actions
information - Ans--causes the user to take an action that he or she otherwise
could not or would not have taken information is determined by the effect it has
on the user, not by its physical form
