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.

They are the users of the system and is one of the components of Accounting Information System.

What is the component of Accounting Information System that is used to collect, process and store data?

The component of Accounting Information System that are about the organization and its business activities.

What is the component of Accounting Information System that is used to process the data?

One of the components of Accounting Information System which includes the computers, peripheral devices, and network communications devices used in the AIS.

What is component of Accounting Information System that safeguards AIS data?

How can AIS add value to the organization?

Major subsystems of AIS

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

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

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

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

It is one of the general model for AIS that falls into two general groups: external and internal.

What is a general model of AIS that includes creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers and customers?

It includes management at every level of the organization, as well as operations personnel.

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

It is one of the general model of AIS which is known as a processed data.

These are financial transactions that enter the information system from both internal and external sources. It is also the economic changes with other business entities and individuals outside the firm.

These are changes or movement of resources within the organization.

It is the first operational stage in the information system and it's objective is to ensure that event data entering the system are valid, complete, and free from material errors.

Once collected, data usually require processing to produce information. Tasks in this ________ stage range from simple to complex.

Its content can be represented in logical hierarchy.

Levels in the Data Hierarchy

It is the most elemental piece of potentially useful data in the database.

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. They are constructed for other class of records such as inventory, accounts payable, and payroll.

Database Management Tasks

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

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

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

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

It is a form of output that is sent back to the system as a source of data. It could be internal or external to initiate or alter a process.

It manages the financial information resource of the firm. It distributes transaction information to operations personnel to coordinate many of their tasks.

The role of accountants

Characteristics of a Useful Information

How AIS process data to produce information?