AIS REAL EXAM
ACCONTING INFORMATION SYSTEMS 1ST
EDITION (2025) ALREADY GRADED A+
Quantifiable metrics used to measure and evaluate the success of an organization based on its
objectives are known as
✓ key performance indicators.
Which characteristic refers to the completeness, accuracy, reliability, and consistency of data?
✓ Data integrity
In information systems, raw and unorganized data captured by an information system
✓ Input
A business model that involves selling directly to customers.
✓ Direct-to-consumer business model
A business event that occurs during the normal operations of a company's operations and directly
relates to the company's creation and provision of a good or service to its customers.
✓ Operating event
An information system captures all the data of interest generated in a business process, including
informational events.
✓ Process-based information systems
An information system that performs data collection, transformation, and reporting that is specific
to financial data. It captures accounting data created by business events (or activities) that involve
an exchange of economic resources.
✓ Accounting information system (AIS)
In information systems, information that comes from an information system in a format that is
useful to users.
✓ Output
1|Page
,A business model that involves charging a monthly subscription fee for unlimited access to a
service or product (for example, Netflix).
✓ Subscription business model
A group of related business events designed to accomplish the strategic objectives of the business.
✓ Business process
The completeness, accuracy, reliability, and consistency of data throughout its life cycle in an
information system.
✓ Data integrity
A business event that helps a company operate by acquiring incoming cash flows to fund
operating events.
✓ Financing event
A single business activity in a business process that takes place during the normal operation of a
business. Examples of business events include "Sell goods to customer" and "Purchase
equipment." Business events give rise to accounting transactions because they involve an
exchange of economic resources that impacts the accounting equation. Also called a Business
activity.
✓ Business event
A system that consists of interrelated components including physical hardware like monitors and
laptops, the software that users interact with, databases used for storage, networks that send
data and information throughout the system, and the people who use and maintain it.
✓ Information system
A business event that involves an exchange of information and never involves an exchange of
economic resources.
✓ Information event
The process of aggregating data into information on the activities and performance in a company.
Reporting provides a strictly descriptive view of what happened and does not seek insights into
the context or reasons.
✓ Reporting
2|Page
,A traditional information system that captures only accounting business events and ignores
nonfinancial data and the relationships between business events and business processes.
✓ Transaction-based AIS
A business model in which a manufacturer sells goods to a retailer to sell to consumers on its
behalf.
✓ Retailer business model
A quantifiable metric used to measure and evaluate the success of a company based on its
objectives.
✓ Key performance indicator (KPI)
A business model in which individuals purchase and run a franchise, such as a franchise of a
popular fast food chain (for example, McDonald's).
✓ Franchise business model
A single business activity in a business process that takes place during the normal operation of a
business. Examples of business events include "Sell goods to customer" and "Purchase
equipment." Business events give rise to accounting transactions because they involve an
exchange of economic resources that impacts the accounting equation.
✓ Business activity
A company's plan for operations. It identifies the customer base, products, operation plans, and
sources of revenue and financing.
✓ Business model
Additional characteristics beyond the fundamental characteristics of relevance and faithful
representation that enhance the usefulness of information. There are four of these optional
characteristics: verifiability, timeliness, understandability, and comparability.
✓ Enhancing characteristics
A business model that involves offering free services but charging a fee to access upgraded
features (for example, Dropbox).
✓ Freemium business model
3|Page
, A business event that provides long-term value to a company by purchasing long-term assets that
will deliver value in the future.
✓ Investing event
The process of using technology to transform raw data, or facts, into useful information. Data
analytics answers strategic questions beyond historical reporting by transforming data into
insights. It can use either raw data from an information system or reports generated by an
information system.
✓ Data analytics
A business model that connects individuals with one another (for example, Airbnb).
✓ Peer-to-peer business model
The two characteristics that are required to make information useful for decision making,
according to the Financial Accounting Standards Board (FASB): relevance and faithful
representation.
✓ Fundamental characteristics
The preferences, constraints, and other factors that affect how a decision is made. The decision
context helps understand the intended use of information: Who are the users, and why do they
need the information?
✓ Decision context
The suitability of information for a particular purpose in a specific task.
✓ Information quality
The goal of making a profit and generating enough cash flow to continue operating. Without the
profit motive, it would not be a business (at least not for very long).
✓ Purpose of a business
A fundamental model that consists of three primary types of business processes: acquisitions and
payments processes; conversion processes; and marketing, sales, and collections processes.
✓ Basic business model
The rapid growth of technological advancements in business
✓ creates new opportunities and increases risks related to their use.
4|Page
ACCONTING INFORMATION SYSTEMS 1ST
EDITION (2025) ALREADY GRADED A+
Quantifiable metrics used to measure and evaluate the success of an organization based on its
objectives are known as
✓ key performance indicators.
Which characteristic refers to the completeness, accuracy, reliability, and consistency of data?
✓ Data integrity
In information systems, raw and unorganized data captured by an information system
✓ Input
A business model that involves selling directly to customers.
✓ Direct-to-consumer business model
A business event that occurs during the normal operations of a company's operations and directly
relates to the company's creation and provision of a good or service to its customers.
✓ Operating event
An information system captures all the data of interest generated in a business process, including
informational events.
✓ Process-based information systems
An information system that performs data collection, transformation, and reporting that is specific
to financial data. It captures accounting data created by business events (or activities) that involve
an exchange of economic resources.
✓ Accounting information system (AIS)
In information systems, information that comes from an information system in a format that is
useful to users.
✓ Output
1|Page
,A business model that involves charging a monthly subscription fee for unlimited access to a
service or product (for example, Netflix).
✓ Subscription business model
A group of related business events designed to accomplish the strategic objectives of the business.
✓ Business process
The completeness, accuracy, reliability, and consistency of data throughout its life cycle in an
information system.
✓ Data integrity
A business event that helps a company operate by acquiring incoming cash flows to fund
operating events.
✓ Financing event
A single business activity in a business process that takes place during the normal operation of a
business. Examples of business events include "Sell goods to customer" and "Purchase
equipment." Business events give rise to accounting transactions because they involve an
exchange of economic resources that impacts the accounting equation. Also called a Business
activity.
✓ Business event
A system that consists of interrelated components including physical hardware like monitors and
laptops, the software that users interact with, databases used for storage, networks that send
data and information throughout the system, and the people who use and maintain it.
✓ Information system
A business event that involves an exchange of information and never involves an exchange of
economic resources.
✓ Information event
The process of aggregating data into information on the activities and performance in a company.
Reporting provides a strictly descriptive view of what happened and does not seek insights into
the context or reasons.
✓ Reporting
2|Page
,A traditional information system that captures only accounting business events and ignores
nonfinancial data and the relationships between business events and business processes.
✓ Transaction-based AIS
A business model in which a manufacturer sells goods to a retailer to sell to consumers on its
behalf.
✓ Retailer business model
A quantifiable metric used to measure and evaluate the success of a company based on its
objectives.
✓ Key performance indicator (KPI)
A business model in which individuals purchase and run a franchise, such as a franchise of a
popular fast food chain (for example, McDonald's).
✓ Franchise business model
A single business activity in a business process that takes place during the normal operation of a
business. Examples of business events include "Sell goods to customer" and "Purchase
equipment." Business events give rise to accounting transactions because they involve an
exchange of economic resources that impacts the accounting equation.
✓ Business activity
A company's plan for operations. It identifies the customer base, products, operation plans, and
sources of revenue and financing.
✓ Business model
Additional characteristics beyond the fundamental characteristics of relevance and faithful
representation that enhance the usefulness of information. There are four of these optional
characteristics: verifiability, timeliness, understandability, and comparability.
✓ Enhancing characteristics
A business model that involves offering free services but charging a fee to access upgraded
features (for example, Dropbox).
✓ Freemium business model
3|Page
, A business event that provides long-term value to a company by purchasing long-term assets that
will deliver value in the future.
✓ Investing event
The process of using technology to transform raw data, or facts, into useful information. Data
analytics answers strategic questions beyond historical reporting by transforming data into
insights. It can use either raw data from an information system or reports generated by an
information system.
✓ Data analytics
A business model that connects individuals with one another (for example, Airbnb).
✓ Peer-to-peer business model
The two characteristics that are required to make information useful for decision making,
according to the Financial Accounting Standards Board (FASB): relevance and faithful
representation.
✓ Fundamental characteristics
The preferences, constraints, and other factors that affect how a decision is made. The decision
context helps understand the intended use of information: Who are the users, and why do they
need the information?
✓ Decision context
The suitability of information for a particular purpose in a specific task.
✓ Information quality
The goal of making a profit and generating enough cash flow to continue operating. Without the
profit motive, it would not be a business (at least not for very long).
✓ Purpose of a business
A fundamental model that consists of three primary types of business processes: acquisitions and
payments processes; conversion processes; and marketing, sales, and collections processes.
✓ Basic business model
The rapid growth of technological advancements in business
✓ creates new opportunities and increases risks related to their use.
4|Page
