ACCT 550 Exam #1- 001 Accounting Information Systems with Complete Solution

What does ERP stand for? - ANSWER Enterprise Resource Planning What does ERP involve? - ANSWER ERP involves the integration of data across multiple organizational functions. It is a centralized system with proper authorization controls in place What is the most important thing to understand when data is flowing into various parts of the company? - ANSWER You have to understand the overall business process flow (more important than technical knowledge) What is the purpose of segregation of duties? - ANSWER To avoid the manipulation of data by separating function (Sales function are not allowed to review purchase orders and the purchase order does not contain a price) What are three types of transaction cycles and business processes? - ANSWER 1. Revenue Cycle 2. Expenditure Cycle 3. Conversion Cycle What is merchandising? - ANSWER The method, practice and operation used to promote and sustain certain categories of commercial activity. Any practice which contributes to the sale of products to a retail consumer in retail outlets. Display of products in such a way that it stimulates interest and entices customers to make a purchase. What is assortment planning? - ANSWER A process whereby products are selected and planned to maximize sales and profit for a specified period of time. What two things does the assortment plan take into consideration? - ANSWER The financial objectives and seasonality of merchandise to ensure proper receipt flow What is customer segmentation? - ANSWER The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, and spending habits What business functions are impacted by analytics? - ANSWER 1. Audit and Compliance 2. Fraud 3. Customers (marketing and customer service) 4. Operations 5. Tax 6. Mergers and acquisitions 7. Strategy 8. IT 9. Talent What is big data? - ANSWER Big data refers to collections of data that have become so large that traditional means of analysis or processing are ineffective, inefficient, and insufficient. Big data involves numerous difficult challenges, including collection, storage, analysis, mining, transfer, distribution, and results presentation. It has become impossible to analyze the data with traditional databases and tools. What are some examples of big data? - ANSWER Bank transactions, financial and market reports, orders and invoicing, surveys, online activities, and even weather or traffic reports What are two prime factors for big data evolution? - ANSWER 1. The Internet 2. Moore's Law What is Moore's Law? - ANSWER Every 18 months computation of power doubles, while the size of computer chips would reduce in size by half. This doubling leads to exponential growth and a drastic reduction in costs with increased efficiency. Moore's Law allowed more companies the ability to invest in data/software which was previously only done by large corporations with large amounts of expendable capital What are the four characteristics of big data? - ANSWER 1. Volume 2. Variety 3. Velocity 4. Veracity Explain the volume of big data. - ANSWER Big data = terabytes, petabytes, and zettabytes "Not so" big data = megabytes (smallest) and gigabytes Explain the variety of big data. - ANSWER Big data = unstructured (text, voice, video) "Not so" big data = structured and relational (audits) What is natural language processing? - ANSWER A system of coding big data in regards to voice recognition Explain the velocity of big data. - ANSWER Big data = data in motion (streaming)