UNIVERSITY OF THE EAST - CALOOCAN CAMPUS

College of Business Administration

SY 2020 - 2021
BSA 3103 - Accounting Information System

NAME DE GUZMAN, JERMAINE N. CLASS ID:

SECTION BSA 2E DATE August 15, 2020

Module No. : 1 Activity No.: 2

Topic : Accounting Information Systems: An Overview

Key Terms
Define the terms below using your own words. Include also a description of the terms.

1. System
➢ Two or more interrelated components that interact to achieve a goal, often
composed of subsystems that support the larger system. A set or group of
interrelated components

2. Goal conflict
➢ It is when a subsystem's goals are inconsistent with the goals of another
subsystem or the system as a whole.

3. Goal congruence
➢ When a subsystem achieves its goals while contributing to the organization's
overall goal.

4. Data
➢ These are facts that are collected, recorded, stored, and processed by an
information system

5. Information
➢ It is data that have been organized and processed to provide meaning to a user.

6. Information technology (IT)

➢ It can be used to redesign supply chain systems, yielding tremendous benefits
and large cost savings. It can also be used in combining data to create a new and
effective information to support the firm and for the managers to make a better
decision.
7. Information overload
➢ It is exceeding the amount of information a human mind can absorb and
process, resulting in a decline in decision-making quality and an increase in the
cost of providing information

8. Value of information
➢ Information is valuable when the benefits exceed the costs of gathering,
maintaining, and storing the data

9. Business process
➢ A set of related, coordinated, and structured activities and tasks, performed by a
person, a computer, or a machine that help accomplish a specific organizational
goal
10. Transaction
➢ It is an agreement between two entities to exchange goods or services or any
other event that can be measured in economic terms by an organization.

11. Transaction processing

➢ It is he process that begins with capturing transaction data and ends with
informational output, such as the financial statements

12. Give-get exchange

➢ Transactions that happen a great many times, such as giving up cash to get
inventory from a supplier and giving employees a paycheck in exchange for their
labor

13. Revenue cycle

➢ It is a cycle where goods and services are sold for cash or a future promise to
receive cash.

14. Expenditure cycle

➢ It is a cycle where companies purchase inventory for resale or raw materials to
use in producing products in exchange for cash or a future promise to pay cash.

15. Production (conversion) cycle

➢ It is a cycle where raw materials are transformed into finished goods.

16. Human resource/payroll cycle

➢ A cycle where employees are hired, trained, compensated, evaluated, promoted,
and terminated.

17. Financing cycle

➢ A cycle where companies sell shares in the company to investors and borrow
money, and where investors are paid dividends and interest is paid on loans.

18. General ledger and reporting system

➢ It is the process of updating the general ledger accounts to prepare reports for the
whole transactions and activities of an organization.

19. Accounting information system (AIS)

➢ It captures the flow of information between the users for the various business
transactions.

20. Predictive analytics

➢ It is the branch of advance analytics that is used to make a predictions about the
unknow future events.
21. Value chain
➢ The set of activities a product or service moves along before as output it is sold to
a customer. This is a step-by-step business model for transforming a product or
service from the idea into reality. It helps the company to have an effective and
efficient decisions to give its customer a product or service with the most value for
the least possible cost.

22. Primary activities

➢ It relates directly to the physical creation, sale, maintenance and support of a
product or service. It involved directly to the production, selling to add value and
to also have competitive strategies that will give advantage to the entities.

23. Support activities

➢ It allows the five primary activities to be performed efficiently and effectively.
Specially procurement supports operations with certain activities, it also supports
marketing and sales. Support activities adds value to one entity when combined
with primary functions that can result to more valuable product or service.
24. Supply chain
➢ It is an extended system that includes an organization's value chain as well as
its suppliers, distributors, and customers. It enables company to better manage
demands and carry the right amount of inventory to meet the customers demand
in the most effective way possible.