Professional Documents
Culture Documents
Systems: An Overview
Chapter 1
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Learning Objectives
Distinguish between data and information:
Understand the characteristics of useful information.
Explain how to determine the value of information.
Explain fundamental decisions an organization makes:
Understand basic information needed to make them.
Identify the transactional information that passes between internal and external
parties and an AIS.
Describe the major business processes present in most companies.
Explain what an accounting information system (AIS) is and describe its basic
functions.
Discuss how an AIS can add value to an organization.
Explain how an AIS and corporate strategy affect each other.
Copyright 2015 Pearson Education, Inc.
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Value of Information
Information is valuable when the benefits exceed
the costs of gathering, maintaining, and storing
the data.
Benefit (i.e., improved decision making)
> Cost (i.e., time and resources used to get
the information)
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Key Terms
System
Goal conflict
Goal congruence
Data
Information
Information technology (IT)
Information overload
Value of information
Business process
Transaction
Transaction processing
Give-get exchange
Revenue cycle
Expenditure cycle
Production (conversion) cycle
Human resource/payroll cycle
Financing cycle
General ledger and reporting
system
Accounting information
system (AIS)
Predictive analytics
Value chain
Primary activities
Support activities
Supply chain
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