ACG 4401 EXAM 1 VERIFIED STUDY GUIDE
System - Answers - a set of two or more interrelated components that interact to
achieve a goal
Goal Conflict - Answers - occurs when a subsystem is inconsistent with the goals of
another subsystem or with the system as a whole
Goal Congruence - Answers - occurs when a subsystem achieves its goals while
contributing to the organization's overall goal
Data - Answers - facts that are collected, recorded, stored, and processed by an
information system
Information - Answers - data that have been organized and processed to provide
meaning and improve the decision-making process
Information Overload - Answers - when the amount of information a human mind can
absorb and process is exceeded. Results in a decline in decision making quality and an
increase in costs
Information Technology (IT) - Answers - Used to help decision makers more effectively
filter and condense information
Value of Information - Answers - the benefit produced by the information minus the cost
of producing it
Business Process - Answers - a set of related, coordinated, and structured activities and
tasks that are performed by a person or by a computer or a machine, and that help
accomplish a specific organizational goal
Transaction - Answers - 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 - Answers - The process that begins with capturing transaction
data and ends with informational output, such as the financial statements
Business Processes or Transaction Cycles - Answers - Revenue Cycle, Expenditure
Cycle Production Cycle, Human Resources/Payroll cycle, Financing Cycle
Revenue Cycle - Answers - goods and services are sold for cash or a future promise to
receive cash
, Expenditure Cycle - Answers - companies purchase inventory for resale or raw
materials to use in producing products in exchange for cash or a future promise to pay
Production or Conversion Cycle - Answers - raw materials are transformed into finished
goods
Human Resources or Payroll Cycle - Answers - employees are hired, trained,
compensated, evaluated, promoted, and terminated
General Ledger and Reporting System - Answers - All Business Processes output data
here, used to generate information for both internal and external parties
Accounting Information System (AIS) - Answers - the information providing vehicle
(intelligence) of the accounting language
predictive analysis - Answers - uses data warehouses and complex algorithms to
forecast future events, based on historical trends and calculated probabilities
Value Chain - Answers - the activities an organization performs to provide value to
customers
Primary Activities of the Value Chain - Answers - Inbound Logistics, Operations,
Outbound logistics, Marketing and Sales, Service
Support Activities of the Value Chain - Answers - Firm Infrastructure, Human
Resources, Technology, Purchasing
Supply Chain - Answers - Contains the Value Chain, Includes Raw Material Supplier,
Manufacturer, Distributor, Retailer, and Consumer
Give-Get Exchange - Answers - business activities that are pairs of events, most
organizations perform a small number of these many times
Financing Cycle - Answers - where companies sell shares in the company to investors
and borrow money and where investors are paid dividends and interest is paid on loans
Data Processing Cycle - Answers - operations performed on data to generate
meaningful and relevant information.
Data Processing Cycle Steps - Answers - Data Input, Data Processing, Data Storage,
Information Output
Turnaround Documents - Answers - company output sent to an external party, who
often adds data to the document, and then are returned to the company as an input
document
System - Answers - a set of two or more interrelated components that interact to
achieve a goal
Goal Conflict - Answers - occurs when a subsystem is inconsistent with the goals of
another subsystem or with the system as a whole
Goal Congruence - Answers - occurs when a subsystem achieves its goals while
contributing to the organization's overall goal
Data - Answers - facts that are collected, recorded, stored, and processed by an
information system
Information - Answers - data that have been organized and processed to provide
meaning and improve the decision-making process
Information Overload - Answers - when the amount of information a human mind can
absorb and process is exceeded. Results in a decline in decision making quality and an
increase in costs
Information Technology (IT) - Answers - Used to help decision makers more effectively
filter and condense information
Value of Information - Answers - the benefit produced by the information minus the cost
of producing it
Business Process - Answers - a set of related, coordinated, and structured activities and
tasks that are performed by a person or by a computer or a machine, and that help
accomplish a specific organizational goal
Transaction - Answers - 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 - Answers - The process that begins with capturing transaction
data and ends with informational output, such as the financial statements
Business Processes or Transaction Cycles - Answers - Revenue Cycle, Expenditure
Cycle Production Cycle, Human Resources/Payroll cycle, Financing Cycle
Revenue Cycle - Answers - goods and services are sold for cash or a future promise to
receive cash
, Expenditure Cycle - Answers - companies purchase inventory for resale or raw
materials to use in producing products in exchange for cash or a future promise to pay
Production or Conversion Cycle - Answers - raw materials are transformed into finished
goods
Human Resources or Payroll Cycle - Answers - employees are hired, trained,
compensated, evaluated, promoted, and terminated
General Ledger and Reporting System - Answers - All Business Processes output data
here, used to generate information for both internal and external parties
Accounting Information System (AIS) - Answers - the information providing vehicle
(intelligence) of the accounting language
predictive analysis - Answers - uses data warehouses and complex algorithms to
forecast future events, based on historical trends and calculated probabilities
Value Chain - Answers - the activities an organization performs to provide value to
customers
Primary Activities of the Value Chain - Answers - Inbound Logistics, Operations,
Outbound logistics, Marketing and Sales, Service
Support Activities of the Value Chain - Answers - Firm Infrastructure, Human
Resources, Technology, Purchasing
Supply Chain - Answers - Contains the Value Chain, Includes Raw Material Supplier,
Manufacturer, Distributor, Retailer, and Consumer
Give-Get Exchange - Answers - business activities that are pairs of events, most
organizations perform a small number of these many times
Financing Cycle - Answers - where companies sell shares in the company to investors
and borrow money and where investors are paid dividends and interest is paid on loans
Data Processing Cycle - Answers - operations performed on data to generate
meaningful and relevant information.
Data Processing Cycle Steps - Answers - Data Input, Data Processing, Data Storage,
Information Output
Turnaround Documents - Answers - company output sent to an external party, who
often adds data to the document, and then are returned to the company as an input
document
