AIS Questions and Answers Graded A+

AIS Questions and Answers Graded A+ What is an accounting information system? An accounting information system is a structure of interrelated components that collect, store, and process data arising from business events. What are the components of an accounting information system? Procedures and instructions, internal controls, data, people, software, and information technology infrastructure Why is it important for accountants to know about accounting information systems? Because accountants use them every day. What is the main benefit of an accounting information system? The main benefit AISs provide is that they efficiently gather and store all relevant business event data for the purpose of extracting information for decision making. Scope of data, financial/non-financial. Breadth and depth of data. All of this helps for better decision making. What is the main disadvantage of an accounting information system? Cost (implentation, updates, maintenance) How do accounting information systems differ from traditional double-entry systems? AISs gather and store all relevant business event data, whereas traditional double-entry systems gather and store only financial details. What is a relational database? And why are they useful in building an AIS? Tables made up of rows and columns linked to other tables. Each table has one focus which is why relationships are created. Reduces storage costs-data redundancy, analytical abilities-model real world entities. How are internal controls relevant to an accounting information system? Internal controls help maintain the integrity of the accounting information system and the accounting information system is the platform with which many of the internal controls are implemented. What is the purpose of the REA Matrix? To identify and organize the events and their related agents and resources What is the purpose of the REA Diagram? It is given to the user to show how the tables in the database are linked together, in their applicable business cycles, so that the user can perform updates or maintenance. What is the purpose of the Schema? The Schema identifies all of the primary keys, foreign keys, and other attributes that will be found in each table; it serves as a guide for the designer of the database to follow and also for auditors and other users to find out where specific data is stored in the database. (alphabetize) Describe the REA Matrix Only non-client document, Identify business events, resources, and agents. Formatted as ERA(events, resources,agent). First step in the design process. Describe the REA Diagram Organized in cycles: Production, Payroll, Revenue, Purchase. Client Document; identify tables and types of relationships. Indicates where relationship tables will be placed Describe the Schema Primary keys are underlined, foreign keys in italics. Client document used to identify fields, primary keys, foreign keys, and other attributes. Lists REA, relationship, and lookup tables. Define Control Source Where we are writing the information to, A field in the table Define Record SOurce Tables or query that the form is based off of Define Row Source List source you're pulling from for a combo box Whats the purpose of a form? mask for entering data into tables Why use subforms? Writes data to a different table than the form, they are inserted in another form Whats the purpose of a query? A question asked to a database, combines data from different tables and specific fields, allows user to manipulate data Whats the purpose of a report? To present information in a formal way to decision makers Whats the purpose of a table? To hold data What is the purpose of a relationship table? Allows for many to many relationships to take place What is the purpose of referential integrity? Both tables same file, fields in relationship have same data type, parent table's field is a primary key, child table can only hold values found in parent table What are action queries? Append query, update query, delete query Describe an append query? add to Describe how to update a query? modify Describe how to delete a query? remove Which is the only document not given to the client? REA Matrix What is the order of tables from left to right that are identified in the REA Matrix? Events, resources, agents What is the purpose (importance) of having a Primary key? Allows specific records to be identified and referenced through relationships. -uniqueness -relationships -identified and reinforced. Page numbers to study in writing book 5: C's and AR, Conciseness, Clarity, Critical Thinking, Content, Coherence, Revision, Appropriateness for reader, 14: Writing Process, 21: Basic Writing Structure: Introduction, Concise Statement of the main idea, development of the main idea, conclusion, 114, 117 What are the writting tips for an effective writter- 5 C's - AR-pg 5 Conciseness, Clarity, Critical Thinking, Content, Coherence, Appropriateness for reader, Revision Basic writing scructure Introduction, Concise statement of the main idea, development of the main idea, Conclusion What is the writting process? Plan, Draft, Revise Deductive reasoning A + B = C General to specific if A=B & B=C, Then A=C What's the purpose of a subform? writing data to different table than the form. What are the two purposes of an asterisk? Repeat tables within a cycle and and to link tables outside of the current cycle Name 7 parts of the grading rubric (also known and the tip for the effective writer. a. Clarity b. Coherence c. Content d. Revision e. Approciateness to reader f. Critical thinking g. Conciseness What is a double entry system? A system that moves numbers from one account to another What type of the data does a double entry system record ? Date amount account 3. What is an event based accounting system? What type of data does it record? Group of interrelated components that gather, stores and process all relevant business data What is the main difference between the double entry system and event based Accounintg systems a. Double entry records only financial data while event based collects all relevant business data b. Scope of the data that is gathered and how its gathered What is the purpose of a relationship? To allow similar data to be linked and to reduce data redundancy What is AIS? Is a program that collects stores and process data for better business decsions What is an AIS composed of? a. SIC PI DIIP b. Software c. Internal controls d. Process instruction e. Data f. Information technology infrastructure g. people Why is it important for an accounting professional to understand AISs? Accountant use it everyday Name all 6 of the parts of the process to making an argument a. IARWIC b. Identify key issies c. Anticipate all side of an arugment d. Research all sides of the argument suing authoritative sources e. weigh the evidence for all sides and build support for you position f. identify and respond to counter arguments g. communicate you conclusion What does REA stand for Resources events agents Name the 3 Parts of the writing PROCESS a. Plan b. Draft c. revise What is the main benefit of an AIS? Why is this benefit? Breadth and depth of an data provides more info for decision makers What is the main disadvantage of AIS? What is this an disadvantage? Cost of an AIS Which of the following is a document Not give to a client? REA Matrix Diagram Schema? REA Matrix What is a form AND what is the purpose of a form? A form is mask for entering data into a table What is the purpose of a table AND what is a table? A table is a rows and columns the purpose is to store data in an organized fashion in a similar focus or content What is the purpose of a report? a. To collect the data in a way to be able to make better business decisions b. To formally present information to decision makers c. Presents informa found by a query d. To formally present information to decision makers How do you take care of a many-to many relationship? You have to create a relationship table made up of the primary keys of the two tables What do internal controls do for AIS? Why re they relevant to an AIS? a. They maintain the integrity of the data, and they are relevant because b. Internal controls help maintain the integrity of the AIS and the AIS is the platform in which many internal controls are implemented List the names of the action queries?( you should know 3 of them) a. Append query b. Delete query c. Update What are the two types queries? a. Action b. Select What is an example of inductive reasoning How about deductive reasoning? a. Specific to general b. General to specific Name the 4 parts of the basic writing STRUCTURES? a. Introduction b. Concise statement of the main idea c. Development of the main idea d. conclusion Why are relational database useful when building an AIS a. Improve analytical abilities b. reduce data redundancy Name the 4 part of the business cycles of the REA Diagram a. Revenue b. Purchase c. Production d. Payroll e. financing What is meant by the term "relational database"? A group of interrelated tables made up of columns and rows thar are linked through primary keys How is a REA Diagram Grouped? By business cycles ERA How is a Schema grouped? REA tables , relationship tables and look-up tables What is the purpose or role of a query ? Pulls data from tables to create a subset data , sort data/ organize data specific to the users needs retrieve and manipulate data from one or more tables what is a query? A question that you ask a database Describe the REA Matrix? Its ourpose and how it is arranged a. A brainstorming document ( not for client) to identify and organize reveleabt business events and associated resources and agents b. Its layout, events on the left in a column, resources in the middle and agents in the far right. Describe an REA Diagram? its Purpose and how its arranged a. A document give to the client that is a visual representation of the tables and relationship In their applicable business cycles to they can perform updates and maintained b. Its layout ,events in middle, boxes around events, agents and resources relationships drawn with cardinalities