It is 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.

it supports daily business operations with numerous reports, documents, and messages for users throughout the organization.

produces the financial statements such as income statement, balance sheet, statement of cash flows, etc.

provides internal management with special purpose financial reports and information needed for decision-making such as budgets, variance reports, and responsibility reports

processes non-financial transactions that are not normally processed by traditional AIS.

management at every level of the organization, as well as operations personnel. ▪ In contrast to external reporting, the organization has a great deal of latitude in the way it meets the needs of internal users.

creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers and customers.

are facts, which may or may not be processed (edited, summarized, or refined) and have no direct effect on the user.

is a processed data.

These are financial transactions that enter the information system from both internal and external sources.

the most common source of data for most organizations.

These are exchange or movement of resources within the organization.

▪ It is the first operational stage in the information system. ▪ The objective is to ensure that event data entering the system are valid, complete, and free from material errors. ▪ The information system should capture only relevant data and there must be efficient data collection procedures.

Once collected, data usually require processing to produce information.

is its physical repository for financial and nonfinancial data. ▪ Its content can be represented in logical hierarchy.

▪ It is the most elemental piece of potentially useful data in the database. ▪ a logical and relevant characteristic of an entity about which the firm captures data.

It is the complete set of attributes for a single occurrence within an entity class. To find a record within a database, we must be able to identify it uniquely.

It is a complete set of records of an identical class.

assigns keys to new records and stores them in proper location in database.

task of permanently removing obsolete or redundant records from the database.

the tasks of locating and extracting an existing record from the database for processing

It is the process of compiling, arranging, formatting, and presenting information to users.