WGU D561 Information Systems for Accounting
and Control Questions and Answers| Latest
Data
Facts collected, recorded, and stored in a system (e.g., numbers, dates, names) that alone have
no meaning without context.
Information
Data that has been organized and given context to make it meaningful and useful for decision
making.
Information overload
A condition where too much information reduces the quality of decision making.
Information Technology (IT)
Technology used to help decision makers more effectively filter and condense information.
Value of information
Information is valuable when the benefits of having it exceed the costs of gathering, maintaining,
and storing it.
Accurate (information characteristic)
Information that is correct and free of error.
,Complete (information characteristic)
Information that does not omit important aspects of events or activities.
Relevant (information characteristic)
Information that reduces uncertainty and improves decision making.
Timely (information characteristic)
Information provided in time for a decision maker to act on it.
Verifiable (information characteristic)
Information that two independent people can produce the same result from the same data.
Machine-readable format
A data format that can be read and processed by a computer; XBRL is an example.
Business process
A set of related, coordinated, and structured activities performed by people or machines to
achieve a specific organizational goal.
Transaction
An agreement between two entities to exchange goods, services, or any other event
measurable in economic terms.
Transaction processing
Using transaction data to create financial statements and records.
,Give-get exchange
The fundamental nature of business transactions: one party gives something and gets
something in return.
Revenue cycle
The business process: give goods/services — get cash.
Expenditure cycle
The business process: get goods/services — give cash.
Production cycle (business process)
The business process: give labor and raw materials — get finished goods.
Payroll cycle (business process)
The business process: give cash — get labor.
Financing cycle
The business process: give cash — get cash (borrowing and repaying).
Accounting Information System (AIS)
, A system that collects, records, stores, and processes data to produce information for decision
makers; includes people, processes, technology, and controls.
How does an AIS add value?
By improving product/service quality, improving efficiency, sharing knowledge, improving supply
chain, strengthening internal controls, and improving decision making.
Artificial Intelligence (AI)
The use of computer systems to simulate human intelligence processes such as learning,
reasoning, and self-improvement.
Data analytics
The use of software and algorithms to find and solve problems and improve business
performance.
Cloud computing
The use of a browser to remotely access software, data storage, hardware, and applications.
Virtualization
Running multiple systems simultaneously on one physical computer.
and Control Questions and Answers| Latest
Data
Facts collected, recorded, and stored in a system (e.g., numbers, dates, names) that alone have
no meaning without context.
Information
Data that has been organized and given context to make it meaningful and useful for decision
making.
Information overload
A condition where too much information reduces the quality of decision making.
Information Technology (IT)
Technology used to help decision makers more effectively filter and condense information.
Value of information
Information is valuable when the benefits of having it exceed the costs of gathering, maintaining,
and storing it.
Accurate (information characteristic)
Information that is correct and free of error.
,Complete (information characteristic)
Information that does not omit important aspects of events or activities.
Relevant (information characteristic)
Information that reduces uncertainty and improves decision making.
Timely (information characteristic)
Information provided in time for a decision maker to act on it.
Verifiable (information characteristic)
Information that two independent people can produce the same result from the same data.
Machine-readable format
A data format that can be read and processed by a computer; XBRL is an example.
Business process
A set of related, coordinated, and structured activities performed by people or machines to
achieve a specific organizational goal.
Transaction
An agreement between two entities to exchange goods, services, or any other event
measurable in economic terms.
Transaction processing
Using transaction data to create financial statements and records.
,Give-get exchange
The fundamental nature of business transactions: one party gives something and gets
something in return.
Revenue cycle
The business process: give goods/services — get cash.
Expenditure cycle
The business process: get goods/services — give cash.
Production cycle (business process)
The business process: give labor and raw materials — get finished goods.
Payroll cycle (business process)
The business process: give cash — get labor.
Financing cycle
The business process: give cash — get cash (borrowing and repaying).
Accounting Information System (AIS)
, A system that collects, records, stores, and processes data to produce information for decision
makers; includes people, processes, technology, and controls.
How does an AIS add value?
By improving product/service quality, improving efficiency, sharing knowledge, improving supply
chain, strengthening internal controls, and improving decision making.
Artificial Intelligence (AI)
The use of computer systems to simulate human intelligence processes such as learning,
reasoning, and self-improvement.
Data analytics
The use of software and algorithms to find and solve problems and improve business
performance.
Cloud computing
The use of a browser to remotely access software, data storage, hardware, and applications.
Virtualization
Running multiple systems simultaneously on one physical computer.
