D561 Information Systems Questions with
100% Correct Answers
System
a set of detailed methods, procedures, and routines that carry out specific activities, perform a
duty, achieve goals or objectives, or solve one or more problems.
Goal Conflict
When a subsystem's goals are inconsistent with the goals of another subsystem or the system
as a whole.
Goal Congruence
When a subsystem achieves its goals while contributing to the organization's overall goal.
Data
Facts that are collected, recorded, stored, and processed by an information system.
Information
Data that have been organized and processed to provide meaning and improve decision
making.
Machine-Readable
Data in a format that can be processed by a computer.
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 provided by information minus the cost of producing it.
Information System
The people and technologies in an organization that produce information.
Business Process
A set of related, coordinated, and structured activities and tasks, performed by a person, a
computer, or a machine, that helps accomplish a specific organizational goal.
Transaction
An agreement between two entities to exchange goods or services, such as selling inventory
in exchange for cash; any other event that can be measured in economic terms by an
organization.
Transaction Processing
Process of capturing transaction data, processing it, storing it for later use, and producing
information output, such as a 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 Processes or Transaction Cycles
The major give-get exchanges that occur frequently in most companies.
,Revenue Cycle
Activities associated with selling goods and services in exchange for cash or a future promise
to receive cash.
Expenditure Cycle
Activities associated with purchasing inventory for resale or raw materials in exchange for
cash or a future promise to pay cash.
Production Cycle
Activities associated with using labor, raw materials, and equipment to produce finished
goods. Also called conversion cycle.
Human Resources/Payroll Cycle
Activities associated with hiring, training, compensating, evaluating, promoting, and
terminating employees.
Financing Cycle
Activities associated with raising money by selling shares in the company to investors and
borrowing money as well as paying dividends and interest.
General Ledger and Reporting System
Information-processing operations involved in updating the general ledger and preparing
reports for both management and external parties.
Accounting Information System (AIS)
A system that collects, records, stores, and processes data to produce information for decision
makers. It includes people, procedures and instructions, data, software, information
technology infrastructure, and internal controls and security measures.
, Accounting
The systematic and comprehensive recording of an organization's financial transactions,
including summarizing, analyzing, and reporting these transactions to all users.
CITP (Certified Information Technology Professional)
reflects the AICPA's recognition of the importance of IT and its interrelationship with
accounting.
Artificial Intelligence (AI)
The use of computer systems to simulate human intelligence processes such as learning,
reasoning, and self-improvement.
Data Analytics
Use of software and algorithms to find and solve problems and improve business
performance.
Data Dashboard
A display of important data points, metrics, and key performance indicators in easily
understood line or bar charts, tables, or gauges.
Blockchain
Individual digital records, called blocks, linked together using cryptography in a single list,
called a chain.
Virtualization
Running multiple systems simultaneously on one physical computer.
Cloud Computing
100% Correct Answers
System
a set of detailed methods, procedures, and routines that carry out specific activities, perform a
duty, achieve goals or objectives, or solve one or more problems.
Goal Conflict
When a subsystem's goals are inconsistent with the goals of another subsystem or the system
as a whole.
Goal Congruence
When a subsystem achieves its goals while contributing to the organization's overall goal.
Data
Facts that are collected, recorded, stored, and processed by an information system.
Information
Data that have been organized and processed to provide meaning and improve decision
making.
Machine-Readable
Data in a format that can be processed by a computer.
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 provided by information minus the cost of producing it.
Information System
The people and technologies in an organization that produce information.
Business Process
A set of related, coordinated, and structured activities and tasks, performed by a person, a
computer, or a machine, that helps accomplish a specific organizational goal.
Transaction
An agreement between two entities to exchange goods or services, such as selling inventory
in exchange for cash; any other event that can be measured in economic terms by an
organization.
Transaction Processing
Process of capturing transaction data, processing it, storing it for later use, and producing
information output, such as a 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 Processes or Transaction Cycles
The major give-get exchanges that occur frequently in most companies.
,Revenue Cycle
Activities associated with selling goods and services in exchange for cash or a future promise
to receive cash.
Expenditure Cycle
Activities associated with purchasing inventory for resale or raw materials in exchange for
cash or a future promise to pay cash.
Production Cycle
Activities associated with using labor, raw materials, and equipment to produce finished
goods. Also called conversion cycle.
Human Resources/Payroll Cycle
Activities associated with hiring, training, compensating, evaluating, promoting, and
terminating employees.
Financing Cycle
Activities associated with raising money by selling shares in the company to investors and
borrowing money as well as paying dividends and interest.
General Ledger and Reporting System
Information-processing operations involved in updating the general ledger and preparing
reports for both management and external parties.
Accounting Information System (AIS)
A system that collects, records, stores, and processes data to produce information for decision
makers. It includes people, procedures and instructions, data, software, information
technology infrastructure, and internal controls and security measures.
, Accounting
The systematic and comprehensive recording of an organization's financial transactions,
including summarizing, analyzing, and reporting these transactions to all users.
CITP (Certified Information Technology Professional)
reflects the AICPA's recognition of the importance of IT and its interrelationship with
accounting.
Artificial Intelligence (AI)
The use of computer systems to simulate human intelligence processes such as learning,
reasoning, and self-improvement.
Data Analytics
Use of software and algorithms to find and solve problems and improve business
performance.
Data Dashboard
A display of important data points, metrics, and key performance indicators in easily
understood line or bar charts, tables, or gauges.
Blockchain
Individual digital records, called blocks, linked together using cryptography in a single list,
called a chain.
Virtualization
Running multiple systems simultaneously on one physical computer.
Cloud Computing
