AIS Overview of AIS

Overview of Accounting Information Systems

1. Which of the following is NOT a financial

transaction?

1. purchase of products
2. cash receipts
3. update valid vendor file
4. sale of inventory

Financial transactions

A financial transaction is economic events that affect the assets and equities of the organization

e.g., purchase of an airline ticket

Nonfinancial transactions

all other events processed by the organization’s information system

e.g., an airline reservation — no commitment by the customer

P7-8

2- The following are subsystems of the Accounting

Information System, EXCEPT

1. Transaction Processing System.
2. Human Resources System.
3. General Ledger/Financial Reporting System.
4. Management Reporting System

AIS Subsystems-

• Transaction processing system (TPS)
• supports daily business operations
• General Ledger/ Financial Reporting System (GL/FRS)
• produces financial statements and reports
• Management Reporting System (MRS)
  • produces special-purpose reports for internal use. p8

3- Which of the following is NOT a purpose of

the Transaction Processing System?

1. managing and reporting on the status of financial investments
2. converting economic events into financial transactions
3. distributing essential information to operations personnel to support their daily operations
4. recording financial transactions in the accounting records

Transaction Processing System

The transaction processing system (TPS) is central to the overall function of the information system by converting economic events into financial transactions; recording financial transactions in the accounting records (journals and ledgers); and distributing essential financial information to operations personnel to support their daily operations p9 .

4- The objectives of the data collection activity of

the general model for AIS are to collect data

that are

1. relevant and redundant.
2. efficient and objective.
3. efficient and redundant.
4. efficient and relevant

Data Collection

Two rules govern the design of data collection procedures: relevance and efficiency

p12

5- Which of the following is NOT a characteristic

of effective information?

1. relevance
2. accuracy
3. summarization
4. Precision

useful information has the following characteristics: relevance, timeliness, accuracy, completeness, and summarization. p14