Professional Documents
Culture Documents
1. Distinguish between data and information, Discuss the characteristics of useful information, Explain how to determine the value of information. 2. Explain the decisions an organization makes and the information needed to make those decisions. 3. Identify the information that passes between internal and external parties and an AIS. 4. Describe the major business processes present in most companies. 5. Explain what an accounting information system (AIS) is and describe its basic functions. 6. Discuss how an AIS can add value to an organization. 7. Explain how an AIS and corporate strategy affect each other.
1-1
1-2
Goal #1
After finishing this learning objective the student should be able to: 1. Define a System, data, and information 2. Distinguish Data and Information 3. Understand the value of Information versus cost of information 4. List and explain all Useful Characteristics of Information
1-3
1-4
1-5
1-6
Value of Information
Benefits
Reduce Uncertainty Improve Decisions Improve Planning Improve Scheduling
Costs
Time & Resources Produce Information Distribute Information
1-7
The capacity of information to make a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct prior expectations.
1. Reliable
The quality of information that assures that information is reasonably free from error and bias and faithfully represents what it purports to represent.
1. Complete
The inclusion in reported information of everything material that is necessary for faithful representation of the relevant phenomena.
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
1-8
Having information available to a decision maker before it loses its capacity to influence decisions.
4. Understandable
The ability through consensus among measurers to ensure that information represents what it purports to represent or that the chosen method of measurement has been used without error or bias.
4. Accessible
Available when needed (see Timely) and in a useful format (see Understandable).
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
1-9
1-10
1-11
1-12
1-13
2. Users of the information: a. Internal: management, accounting staff, and employees b. External: vendors, customers, government, investors, creditors, banks, etc(figure 1-1).
1-14
1-15
1-16
Goals #5 and 6:
After finishing these learning objectives the student should be able to answer questions such as: 5.
1. 2.
What is an AIS
What is Accounting and therefore what is AIS. What are the functions of an AIS
1-17
1-18
Components of an AIS
1. People using the system 2. Procedures and Instructions
1. For collecting, processing, and storing data
1-19
1-20
1-21
1-22
1-23
Value Chain
1. The set of activities a product or service moves along before as output it is sold to a customer a. At each activity the product or service gains value
1-24
1-25
1-26
Value Chain
1-27
1-28