ACC 361 Exam 1 Study Guide

ACC 361 Exam 1 Study Guide - ACC 361 Exam 1 Study Guide:...

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ACC 361 Exam 1 Study Guide: Chapters 1-3 Chapter 1 - Information is a business resource o Information flows vertically and horizontally in organization Vertically from top management to day to day operations personnel Horizontally between operations personnel on day to day operations Elements of a System - System: group of two or more interrelated components or subsystems that serve a common purpose o Multiple components: system must contain more than one part o Relatedness: common purpose relates the multiples parts of the system All parts serve common objective o System vs. subsystem: system is called a subsystem when it is viewed in relation to the larger system of which it is a part/ subsystem called a system when it is the focus of attention o Purpose: system must serve at least one purpose, but it may serve several - Decomposition: process of dividing the system into smaller subsystem parts o Can present overall system as a hierarchy and view the relationships between subordinate and higher-level subsystems An Information Systems Framework - Information system: set of formal procedures by which data are collected, processed into information, and distributed to users - Transaction: event that affects or is of interest to the organization and is processed by its formation system as a unit of work - Financial transaction: economic event that affects the assets and equities of the organization, is reflected in its accounts, and is measure in monetary terms - Nonfinancial transaction: does not meet narrow definition of a financial transaction The Accounting Information System: - AIS subsystems process financial transactions and nonfinancial transactions that directly affect the processing of financial transactions - Composed of 3 major subsystems: 1. Transaction processing system (TPS): supports daily business operations with numerous reports, documents, and messages for users throughout the organization 2. General Ledger/ Financial Reporting System (GL/FRS): produces the traditional financial statements 3. Management Reporting System (MRS): provides internal management with special- purpose financial reports and information needed for decision making - Management Information System (MIS) processes nonfinancial transactions that are not normally processed by traditional AIS Data: raw facts, which may or may not be processed and have no direct effect on the user Information: processed data/ causes user to take an action that he or she otherwise wouldn’t have
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End users: internal and external - Internal: management at every level or organization, as well as operations personnel - External: creditors, stockholders, potential investors, regulatory agencies, etc. Data sources: financial transactions that enter the information system from both internal and
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ACC 361 Exam 1 Study Guide - ACC 361 Exam 1 Study Guide:...

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