AIS Exam 1 (Ch. 1, 2, 3, 5, 6, 7) UPDATED
Exam Questions and CORRECT Answers
System - Correct Answer- 1. an entity consisting of two or more components or subsystems
that interact to achieve a goal. 2. the equipment and programs that comprise a complete
computer installation. 3. the programs and related procedures that perform a single task on a
computer.
Goal conflict - Correct Answer- occurs when a decision or action of a subsystem is
inconsistent with another subsystem or the system as a whole.
goal congruence - Correct Answer- achieved when a subsystem achieves its goals while
contributing to the organization's overall goal.
data - Correct Answer- facts that are collected, recorded, stored, and processed by an
information system to produce informaiton
information - Correct Answer- data that have been organized and processed to provide
meaning to a user
information overload - Correct Answer- the state in which additional information can not be
used efficiently and has no marginal value.
information technology (IT) - Correct Answer- information system designers use IT to help
decision makers more effectively filter and condense information.
value of information - Correct Answer- the benefit produced by the information minus the
cost of producing it.
business process - Correct Answer- a set of related, coordinated, and structured activities and
tasks that help accomplish a specific organizational goal.
transaction - Correct Answer- an agreement between two entities to exchange goods or
services. any exchange that can be measured in economic terms by an organization.
,transaction processing - Correct Answer- a process that begins with capturing transaction data
and ends with an informational output.
give-get exchange - Correct Answer- a event in which two entities exchange items, such as
cash for goods or services.
transaction cycles - Correct Answer- a group of related business activities (sales order entry,
shipping, billing, and cash receipts constitutes the revenue cycle). the four transaction cycle
covered in the text are revenue, expenditure, production, and human resource
management/payroll.
revenue cycle - Correct Answer- the recurring set of business activities and data processing
operations associated with providing goods and services to customers and collecting cash in
payment for those sales.
expenditure cycle - Correct Answer- a recurring set of business activities and related data
processing operations associated with the purchase of and payments for goods and services.
production (conversion) cycle - Correct Answer- the recurring set of business activities and
related data processing operations associated with the manufacture of products.
human resources management/ payroll cycle - Correct Answer- the recurring set of business
activities and data processing operations associated with effectively managing the employee
workforce.
financing cycle - Correct Answer- the business activities and data processing operations
associated with obtaining funds to operate, repay creditors, and distribute profits to investors.
general ledger and reporting system - Correct Answer- the information-processing operations
involved in updating the general ledger and preparing reports that summarize organizational
activities.
accounting information system (AIS) - Correct Answer- a system that collects, records,
stores, and processes data to produce information for decision makers. AIS components
include: people, procedures, and instructions, data, software, information technology
infrastructure, and internal controls and security measures.
, predictive analysis - Correct Answer- it uses data warehouses and complex algorithms to
forecast future events, based on historical trends and calculated probabilities.
value chain - Correct Answer- the linking together of all the primary and support activities in
a business. value is added as a product passes through the chain.
primary activities - Correct Answer- activities in the value chain that are performed to create,
market, and deliver products, and services to customers and provide post-delivery service and
support. primary activities include production, shipping and receiving, and marketing.
support activities - Correct Answer- activities in the value chain that enable the primary
activities to be performed efficiently and effectively. examples include administration,
purchasing, and human resources.
supply chain - Correct Answer- an extended system that includes an organization's value
chain as well as its suppliers, distributors, and customers.
data processing cycle - Correct Answer- the operations performed on the data to generate
meaningful and relevant information. it has fours stages: data input, date storage, data
processing, and information output.
source documents - Correct Answer- contain the initial record of a transaction that takes
place. examples of source documents, which are usually recorded on preprinted forms,
include sales invoices, purchase orders and employee time cards. contrast with operational
document.
turnaround documents - Correct Answer- records of company data sent to an external party
and then returned to the system as input. turnaround documents are prepared in machine-
readable form to facilitate their subsequent processing as input records. an example is utility
bill.
source data automation (SDA) - Correct Answer- the collection of transaction data in
machine-readable form at the time and place of origin. examples of SDA devices are optical
scanners and ATMs.
