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Unformatted text preview: Chapter 1: Accounting Information Systems: An Overview Tuesday, February 12, 2008 3:06 AM Accounting information system (AIS) - the human and capital resources within an organization that are responsible for the preparation of financial information and the information obtained from collecting a processing company transactions. The AIS is a subset of the management information system. Systems, Data, and Information System - a set of two or mote interrelated components that interact to achieve a goal Composed of smaller subsystems Ex: the college of business is a system composed of various departments, each of which is a subsystem. Yet the college itself is a subsystem of the university Systems concept - a systems analysis principle that states that alternative courses of action within a system must be evaluated from the standpoint of the system as a whole rather than from the standpoint of any single subsystem or set of subsystems Changes in subsystems cannot be made without considering the effect on other subsystems and the system as a whole Goal conflict - occurs when a decision or action of a subsystem is inconsistent with another subsystem or the system as a whole Goal congruence - achieved when a subsystem achieves its goals while contributing to the organization's overall goal Subsystems should maximize organizational goals, even if subsystem goals are not maximized The larger the organization and the more complicated the system, the more difficult it is to achieve goal congruence Integration - eliminating duplicate recording, storage, reporting, and other processing activities in an organization Combining of subsystems Ex: companies that used to have separate programs to prepare customer statements, collect cash, and maintain accounts receivable records now combine these functions into a single application Data - facts that are collected, recorded, stored, and processed by an information system Characters that are accepted as input to an information system for further storing and processing. After processing, data becomes information Several kinds of data need to be collected in business: Facts about the activities that take place The resources affected by the activities The people who participate in the activity Information - data that have been organized and processed to provide meaning to a user Need information to make decisions or to improve the decision-making process Users can make better decisions as the quantity and quality of information increase Information can be mandatory, essential, or discretionary...
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- Spring '08