Principles of Financial Accounting · free preview
Components and Purpose of an Accounting Information System
An accounting information system combines people, procedures, data, software, and controls to collect, store, and report financial information, and its design determines how efficiently transactions become decision-useful reports.
1. What an accounting information system is
What an accounting information system is
2. People, procedures, and data
People, procedures, and data
3. Software, hardware, and controls
Software, hardware, and controls
4. Why systems thinking matters to accountants
Why systems thinking matters to accountants
5. AIS components
Which list names the core components of an accounting information system?
6. Cheapest control point
Where is the cheapest place to catch a bad customer number in an accounting information system?
7. Segregation of duties
Why does system design assign different people to authorize, record, and custody functions?
8. Audit trail purpose
What does an audit trail record? Use the figures from the worked example in this lesson and state the result in the requested units.
9. AIS abbreviation meaning
Complete the term. The structured combination of people, procedures, data, technology, and controls used to collect and report financial information is the accounting ____ system.
10. Control at the cheapest point
Give the two-word phrase for the stage where invalid data is stopped before it can spread through the system.
Practice this interactively
Free account · instant grading · spaced review that schedules itself.
Start this course for free