Sohag University Faculty of Commerce ~ English Section ACCOUNTING MATION TPASES Tees) AIS — chapter1 pelt sebosl. By Doni gylca Fourth class 2024 _ Old is oo ..& CamScanner 2 92 4>9.uaallLa: 3 Define _system “DATA a Information| 7 iach) cf First. System "itis isa set of two or more interrelated c Soh interact to achieve a hieve a goal ” * Look —~ ~~ - Asystem is composed of smaller systems each known as “hoe one is performing a function that support the larger system - (each subsystem is designed to achie yf more organizational goal ) Ex: The Colleague is a subsystem of the university . System concept “when developing a sys considering the ~~ PBoancontiet : Occurs when a sub-system's goal is Inconsiste h the gi Decision or action of a subsystem is in lent wi * Occurs wien the subsyster .|- Second, ” ‘Data "Dat Eve - Data about activitieds Data about resources Yoods sold or services provided .. Dh. Trager bh an ead mee - Data about people who participate in activities as customers & sales people ae lee 1 Olds Gold © = (2024)Prepared By Don - Shaarawi 0122-6220500 Inthe Name of Allah ct of eact@Aubsystem on other subsystems & on The System as a whole” aftother subsystem or with the system as a whole the goals of another subsystem or the system as a whole is acRving its goal while contributing to the org's overall goal fat arp collected, recorded, stored, and processed by an information system" tivities happened as sales . CamScanner 3 li92 4>g.uaall—(2024)Prepared By Don - Shaarawi 0122-6220500 ~~ Information ~ Information is data that have been organized and processed to provide meaning & improve decision - making to a user. + Usually, more information(Quantity ) and better information( Quality )lead to beer decleions “= Info overload G Ithappens when the human being passes limits of information thal huFan mind can absorb & process. (get more information than you can effectively assimilaje = 3 Info overload is Costly Because _: af the overl , The Quality of decisions declines While the costs of producing the information increases G So user spend more time & not turning these data into u: fue of the info The benefil produced by the info minus the cost Comparing the benefit with the cost So , info Benefits reduced uncertainty , impr ‘osts exceeds its benefits is not produced . Ins , improved planning + Costs lime & resources spent Machine-Reatlable¥ ormat Data is most useful whsFit is in a machine-readable format that can be read and process: computer. i, shuces + extensible Bus: orting Language (X B RL) i ‘a machine-readable format that can improve many of igs that make information useful and facilitate providing digital business reporting otal cells atN Cpe eb Old is Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 Q : What are the Characteristics that make Information Useful 7 As it help the decision maker to make a better decision by reducing uncertainty . Relevance Reliability Info is reliable(dependable) when = Itis free from bias => accurately represent the act events of the org Completeness It doesn't omit important aspect Timeliness To be provided in time Pode jsion maRers td make decisions Understandability Itis presented in a useful > Verifiability Info would be verifial lo independent knowledgeable people would produce Accessibility An AIS is a system that collet information for decision — Use the advanced technology & (complex com = Bea simple paper-and-pencil syst = Be something in between. CamScanner 3 li92 4>g.uaall ‘Match the jon In the right column with the correct information characteristic in the left column. TL Access restricted | a. A report was carefully designed so that is data was easily, comprehended by the reader. E 2 Accurate ’b. A manager working on the weekend needed information about @ customer's production requests and found it on the company’s network, B 3. Available ¢. Before production reports are accepted, two clerks working independently must produce the same information. H 4 Reputable <. An accounts receivable aging report included all cudjpmer accounts. D 5.complete ‘e. Areport was checked by three different people to make correct. K 6 Concise ¥. An accounts receivable aging report Is used in creditgr decisions, 1 7. Consistent 'g- An accounts receivable aging report wes receive the a customer. ™ 8. Current ig help with a decision, a managerQought the opinion of a highly regarded expert. W 9. Objective i.To protect intellectual property, a c mncrypted the data, stored iin a very secure fadjiy, and ii five people. F 10. Relevant j. Tired of Keying st ja purchasing manager insisted the data be s chine readable form. G 11. Timely k. After a lengthy, rambi tation, a CEO insisted future presentations contaj rinent facts and last no more than 30 minutes. T 12. Useable | Anew manaQiiginsisted|that monthly reports look the same so she could com| h’s results to previous months. 13. Understandable | m. Aftogm: jased on outdated data, a new CFO required ‘conducted with up-to-date data. rely on his personal feclings about a decision, a manager \nion of an outside expert © 14, Verifiable Oldis Gold © _ re CamScanner 3 li92 4>g.uaalli Ep —(2024)Prepared By Don - Shaarawl 0122-6220500 | Discuss the Functions & Components Of AIS ? “© The functions of an AIS are to: — Collect and Store data about events, resources, and agents. — Transform that data into information that 1- People opeyate the system & perform funcli management can use to make decisions about 2- The pr & instructions used in collecting & events, resources, and agents. ring data — Provide controls to ensure that the entity's resources (including data& assets ) are: + Available when needed + Accurate and reliable ie software used to process data }- The IT infrastructure 6- The internal control & security measures 1+ Aset of to oF more interrelated components that int Pachivve a goal is: a= A system ou jars while contributing to the organization's overall goal. subyy stem iy inconyi rals while contribu nl pracesses are mind ©; jem ay 9 whole. ization’s overall goal. bsurh and process. CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 01226220500 Iweted, recorded, stored and processed by an information system S- Information b- Data c- Systems d+ Mandatory information Information is a+ What happens when the data exceeds the amount the hunian mind can absort b- The benefit produced by the information minus the cost of producing it. > Facts that are collected, recorded, stored, and processed by an informat er d= Data that have been organized and processed to provide mganing to a user © Dataare a facts entered, store b> processed output ¢- another word for information, da tive facts that are not qualit Which of the followin; a+ Data is the output ofan AIS. be Information is the primary output of an AIS, > Data iy more useful in decision-making than in d- Data and information are thegame. & Information is a+ basically the same as d be raw facts about transact c= potentially useful fac ced in a timely manner. d= data that have been ANP processed so that it's meaningful. & Humans can ion, Information occurs when those limits are passed. a> over! be excess > anxiety d+ discretion sorb and pr fy Oldis Gold © CamScanner 3 li92 4>g.uaallb+ the benefits produced by possessing and using the inforn c de 11- The benefit produced by the inform a b- 13: Mow many components are found in an AIS? a be c a 14 An acs a b- c d- 15- Informati expect a- b- c a Oldis Gold © ion ow useful it ist de best be de ion makers. how relevant itis. the extent to whi Goal congruence Information Information overload information transactions information: data benefits three four five six ons, is said to b Complete Relevant Reliable avimizes the vatluy ch ion system (AIS) processes: ~ (2024)Prepared By Don - Shaarawi 0122-6220500 jun minus the cost of producing it. ure. ¢ predictions, or confirms or corrects their prior CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 free from error or bias and accurately represents the events or activities of the © | 2- Relevant b> Reliable c> Verifiable d+ Timely ~ Information that docs not omit important aspects of the underlying events or act i a- Complete be Accessible c- Relevant d+ Timely 24 When two knowledgeable people acting independently each produce is information is vaid to be a+ Complete be Relevant c- Reliable d- Verifiable 25 Dara must be converted intu information to be considddyd useful Sd meaningful for decision-making. There are six characteristics thet make information both useful and n\aningful. If information is free from errur or bias and accurately represents the events uf activities of the organization, fesentative of the charactet 3+ Relevancy be Timeliness. ce Understandability d+ Reliability The primary concideration when produc WR type of information is that its benefits exceeds its costs. 2+ Discretionary information be Essential information cg Mandatory information G+ Valze of informatio: CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 INFORMATION NEEDS Types of information needed for decisions: Some is financial , other is nonfina Not all info needed will be produced internally , comes from external sources AIS has to integrate both the internal & external Data: re needed info We have to Understand how the company functions how it's operales to hel identify the types of info needed So Determining the Data & Procedures Needed to collect & ss lo. Which will help us_to_select an effective AIS Ex Toyota become the largest Automobile manufacturer in thi Instead of GMC by Using Effective AIS which improve the production using different types of info ( figang 1on-financial ) from different sources INTERACTION WITH EXTERNAL | AIS Interact with external parties ag _Governi lomers , Creditors . | AlS interact with internal parties as agemeat & employees . “The interaction is A TWO- WAY in the fo} nding & receiving Information . | ¥ | Internal External | Parties | i \ i ) | Organizational Decisions and Information Needed | | ea eh | Old is Gold © CamScanner 3 li92 4>g.uaall% ~ (2024)Prepared By Don - Shaarawi 01226220500 jiness organizations use business processes to get things done. Business process ( transactions cycles “« Set of related , coordinated , structured activities & tasks that are ree pe , (a computer or a machine) -or-both and help to accomplish a specific goal . Each business process is a group of related transactions . y ' Information needed often come from these business processes to be u: bUsiness decisions . | Now , we are studying the Business processes as different grqups of transactions Q: what do we mean by a transaction ? A ATransactionis: An agreement between two entities tq ex: ‘goods or services or Any other event | \ . ; a { thal can be measured in econoff\c terms By an organization. | EXAMPLE — Selling goods to customers e — Buying inventory from suppliers \ - Paying to employees Q.: what do we mean by transaction processing ? ~ Itis the process that begins with ing\ransaction data & end with an informational output such as F/S . Old is Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 iS > _. Many business processes are pairs of events involved in a give-get exchanges. The Basic exchanges can be grouped into five major transaction cycles: i i i Each cycle is defined as activities associattuwith | Revenue Cycle Selling Goods & services for cash (ora amie eepas | Expenditures cycle Purchasing inventory or raw malerials (from “SS To be used in production | Or for resale in future ( to pay cash ) \ | | | Production cycle Using labor , Raw materials & equipmeat duce finished goods HR | Payroll cycle Hiring, training, compensaling, evalu: romoting & terminating employees . Financing Cycle Raising money by selling share stors , borrow money & pay the return (dividends & Interests ) | For each cycle | =>We are processing a few related trans: Mean processing the basic give & over again t ffansaction . Which are supported by a numb! other business aclivilies . =>The last activity for each fansacton cycle send info to the other cycles felpte to one another & interface with the general ledger & reporting system | So , The various transaction i Which is us | Old is Gold © CamScanner 3 li92 4>g.uaall~ {2024)Prepared By Don - Shaarawi 0122-6220500 Expenditure Cycle Production Cycle ia be Cenc) Information for Ledger, Internal & External Users and/Reporting, Human Res./ Payroll Cycle Financing CamScanner 3 li92 4>g.uaallVendors Investors Banks Old is Gold © ~ (2024)Prepared By Don - Shaarawi 0122-6220500 Purchase Orders Goods & Services Vendor Invoices Vendor Payments Invest Funds =__Dividends _ Accounting Information System ot S&S Financial Statements Loans i Loan Payments Financial Statements Deposits Withdrawals Bank Statements Sales Customer Orders Goods & Services ‘Customer Invoices ‘Customer Payments Labor & Services Wages, Salaries & Commissions Managerial Reports & Financial Statements ApPevl Budgets & ‘Accounting Entries Regulotions & Tax Forms —eoer Taxes & Reports Customers Management Government Agencies CamScanner 3 li92 4>g.uaall~~ (2024)Prepared By Don - Shaaraw! 0122-6220500 Major Give - Get ° Transactions in the expenditure = Major GIVE -GET S gals «Soke oenn 9 rave pl pee Laadeee —_———> Oldis Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 ° Transactions in the HR/pavroll cvcle: Major GIVE-GET: g.uaallMAJOR GIVE-GET: Oldis Gold © ~ (2024)Prepared By Don - Shaarawi 0122-6220500 CamScanner 3 li92 4>g.uaall9-6 220500 = (2024)Prepared By Don - Shaarawl (0122-62: ; or event that can be meas i etween (wo entities (0 exchange guods or services or any other event ion is in economic terms by an organi: a) give-get exchange b) transaction ¢) revenue 4d) processing ey 2. Groups of related business called a) transaction cycles. b) economic cycles. ©) business events. d) transactions. isition of mere and payment of vendors are the aequ 3. The transaction cycles approach leads to efficiemprgcessing of large number of transactions because a) transaction cycles are easier to computeri b) a large number of transactions i distinct types. ¢) the transaction cycle approach répgdsents the natural order of business. d) transaction cycles are easy to under da ely small number of ctionXof a business have been grouped into transaction cycles. The cycle that 4. The basic "give and take" ft them is known as the c eludes the events of hiring) a) revenue cycle. b) expenditure cycle. ¢) human resources cyeld d) financing cycle. e Oldis Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 is th ies Mer difference between the revenue and the expenditure cycle? a) The revenue cycle includes marketing activities; the expenditure cycle does not. b) In the revenue cycle, cash is received; in the expenditure cycle cash is pa ¢) The expenditure cycle includes pa d) The revenue eyele includes the act out, ily of obtaining funds from investors 6. The business owners obtain financing from outside inyestors, whicl in an inflow of company. This transaction is considered to be part of which cycl S a) the revenue eyele b) the payroll eyele ©) the production cycle d) the financing eye 7. Which of the following is not a transaction cyehy b) expenditure ©) human res d) general ledy ry ion cycles feed informaMpWireetly into the 1 statement b) governmental report ©) general ledger and report 4d) finan ‘ations a) finan Oldis Gold © CamScanner 3 li92 4>g.uaall~{2024)Prepared By Don - Shaarawi 0122-6220500 ns. An example Of "give. 9, von oe eles can be summariz in the expenditure eyele would be a) give Gash, get cash. b) give cash, get goods, ©) give cash, get labor. d) give goods, get cash. Bet" ed on a high level as "give-get" transa ctions. An example of "giye. 10. Transaction cycles can be summarized on a high level as “ie s get" in the revenue cycle would be a) give cashy get goods. b) give goods, get cash. ©) give cash, get labor. d) give cash, get cash. 11. The transaction cycles relate to one another andingerface with this to generate information for both management and external p: ~ ~ a) general ledger and reporting system b) accounting information systeni c) computer processor d) human resources cycle Many modern accounting for this? a) Every organization dot b) Most businesses do nd®ne ward packages offer separate transaction cycle modules. What is the reason ced to'Implement all of the available transaction cyele modules. | the revenue cycle module as part of their AIS. ¢) The nature of a given ction eyele is the same irrespective of the type of organization. 4) & properly designed AIS does not use the concept of separate business transaction cycles to process | transactions. . 20 | Old is Gold © CamScanner 3 li92 4>g.uaalla ~ (2024)Prepared By Don - Shaarawi0122-6220500 Gs following statements is False’? n) Retail stores do not have a production cycle. b) Financial institutions have installment-loan cycles. o) Aserviee company does not have an inventory system. d) Every organization should implement every transaction cycle module, a) general ledger and reporting system b) accounting information system ) financial reporting d) data processing cycle 14, The operations performed on data to generate meaningful and “S formation are referred to as 15. One of the steps in the data processing eyele is data inp) a) The production transaction system automatica input and processing. b) The performance of some business activity gei c) A general ledger program is queried to Ago (rial balance at the end of an accounting period. d) Data is only input when an authOy is the catalyst for da cach hour to input into a system? ¢ if any new data is available for 16. A typical source document could D a) in some paper form. b) a computer data entry sere ©) a notepad entry. d) both A and B 17. Which step below is Bet a) data input b) feedback from external so ©) data storage d) data processing of the data processing cycle? ces Oldis Gold © CamScanner 3 li92 4>g.uaallu" Ce xs > — {2024)Prepared By Don - Shaarawi 0122-6220500 18. ‘ollected about three facets of each business activity. What are they? a) the business activity, the resources it affects, the people who participate b) the business acti creates, the impact on the financial statements c) the inputs, outputs 4d) who is involved, what was sold, how much was paid purchase order is part of which transaction cycle? a) the revenue cycle b) the production cycle c) the human resources cycle d) the expenditure cycle 19. Certain documents or forms are gener: dior processed ™"S nsaction cycle. The issuing of 20. Certain documents or forms are generated au job time tickets or time sheets is part of which tra a) the revenue cycle b) the production cycle c) the human resources cycle d) the expenditure cycle 21. Common source documents for theyc¥€hue cycle include all of the following except a) sales order. b) receiving report. ©) delivery ticket. d) credit memo. 22. Which of the followil a) delivery ticket b) time card ¢) journal voucher d) purchase order or pro@ssed with each transaction cycle. The collection of jon cycle? ‘uments would be found in the expenditure cycle? Oldis Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared by Don - Shaarawi 0122-6220500 vesmimple al source data that is Important (oan organization, customer satisfaction as patiged by surveys by) stall sa sas a percentage of sales yal ©) satisfaction of employees with (heir work enviroument Ta d) saley revenue divided by the number of hours worked by the sales staff 24, Some information will have fo be collected from sourdy (OMermine, for example, customer satisfaction, a) evternal b) internal ¢) regulatory d) competitive Old is Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 Role of AIS in the value Chain The objective of most organizations is to provide value to their customers “"<\S a number of activities These activities can be described or viewed as a value chain . Here , the value chain of an org consist of two types of activities , includini D=>5 Primary activities include (Line Activities ) 4 Support Wctivijies include(Staff Activities ) © Inbound logistics © Operations ion © Outbound logistics ichnology © Marketing and sales Purchasing o Senice \! tructure ‘Support Activities 7 1. Inbound —-—— \ (2. Operations} | Logistics Receiving Moenvfacturing and Storing Repockeging ‘Motorials Firm Infrastructure Human Resources Technology Purchasing | sone ( 3. Outbound Logistics Advertising R ‘Shipping, Selling Maintenance | eet \ OldisGold © Primary Activities rz} CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-62050 Spo y jee 1 J : eS | tinbound Logistics 04) gl! Ciliaar glll » Ja} Consist of receiving, storing & distributing the materials that are used by the org deere & products it sells Ex For a pharmaceutical company, this activity involve handling incoming chemicals\that e used to make drugs 2-Operations — Transforming the inputs into final products or service Ex, Combining the raw chemicals with the work of peoplé’and equipment to produce the finished drug { t 3-Outbound Logistics Distributing finished goods or services to rs Ex , packaging and shipping the goods to drug stores, doctors, andi tals 4-Marketing and Sales ~ activities that help the customer the org's goods or service Ext , Advertising The Support Activities are madg to Yllow the primary activities to be performed efficiently & effectively . ice, legal & administration activities that allow the org to function ( including AIS ) iring & training employees jat Improve the good & services Such as R&D , IT , Website development C-Technology Acti D-Purchasing Procuring raw materials, supplies , machinery & Building used to carry out the primary activities 25 Old is Gold © CamScanner 3 li92 4>g.uaall~(2024)Prepared By Don - Shaarawi 0122-6220500 Here ,As being a support activity So AIS add value by providing timely & acByrate infgrmation So, The five primary activities can be performed more effectively & efficiently IS can do this by: 1- Improving the quality & reducing the costs of goods & services ». Ex, monitoring the machinery so improving quality , reducinwaste materials & Gost 2- Improving efficiency —. wy dsj so Cogs) No AIS can improve the efficiency of operations by providing timely int 3- Sharing knowledge > @. XPerF 5 {sje Ex ,A well designed AIS can be used to share best practice between offices in a large CPA firm Wyehain cog SUL 2 Cx osdeibytasle les®system reduce the cost of marketing & sales . 4- Improving the efficiency & effectiveness of t! Ex , allowing customers to access to) ompany 5- Improving the internal control stru AIS with the proper intemal control sti ‘an protect the whole firm or even industry from Fraud ,failure or other disasters 6- Improving decision mal [argos By gel Oldis Gold © CamScanner + lsd a suualli iia ~ (2024)Prepared By Don - Shaarawi 0122-6220500 | GERAIS: : ‘ How Does an AIS Can Help Improve Decision Making o | ° Identify situations requiring management action. | For example, a cost report with a large vaaneeph | Stimulate management to investigate and,.if ssary, | take corrective action. >} + Reduce uncertainty and thereby wayide a basis for | choosing among alternative actions. | + Store information about the resu previous decisions | which provides valuable feedkack that can be used to improve | future decisions. | + Provide accurate i ation itt a timely manner. | + Analyze sales data to ‘over items that are purchased | together. a : CamScanner + lsd a ucll~(2024)Prepared By Don - Shaarawi 0122-6220500 The linking of these separate value chains creates a larger system known as a supply chain. Smith Supply Co. Inbound Logistics Pharmaceuticals, Inc. Inbound Logistics Operations Marketing & Sales Service Customer Pharmacy can facilitate synergistic linkages that improve the performance of each company’s value ot the Primary and support activit Marketing & Sales Service Outbound Logistics Marketing & Sales Service subsystems of the value chain system the org's value chain is a p&rt offarger system called supply chain where the company can improve'lt’s performance by helping the other companies to improve its performance Ex, just in time inventory lead to just in time finished goods . 2B Old is Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 el) | The design of the AIS is affected by three factors among : 1+. Development in he info technology 2 Business svategy 3 organizational culture Cc Orgenizational Business « . Culture Strategy > > s » - AIS. « Information Technology As folowing Information technology (IT) > Chan Business strategy > We need to'wal cost & benefits of using IT through understanding the Business strategies . Organizational culture-> influence R¥Butadign As itshould be designed fo reflec the value ofthe or’ culture. Aso AIS design Influence the orgs culture by controling the flow of te info through the org 2 Old is Gold © CamScanner 3 li92 4>g.uaall= (2024)Prepared By Don - Shaarawi 0122-6220500 | Som pbb oJ! NSHP, Artificial intelligence (A I) is the use of computer systems to simulate human intelligence processes such as learning, reasoning, and self-improvement + Alcan be used in the following fields Business, Education, lealthcare + Data analytics is the use of software and algorithms to fin id solve problems | and improve business performance Re. | * Block-chain represents individual digital records, called blO@ks, Inked together using | cryptography in a single list, called a chain. * Block-chains are best known for their crucial rola locurrency systems, such as Bitcoin be | —no need for third parties, single set of bi y reduced cost, — decentralization, efficiency, grivac’ , and provenance Cloud computing is the f a tffowser to remotely access software, data storage, hardware, applications. * Virtualization is the rynnf¥g of multiple systems simultaneously on one Ex; Zoom EY 50tacT Hheotg., efers to the embedding of sensors in a multitude ating and air conditioning, appliances, etc.) so that of devices (light 2 CamScanner + lid a suuall(ESSEC BY Don ~ Shaarawi 0122-6220500 J i. x T ledger created phy. \) Blockchain eae Mer systems to simulate human intel A) artificial intelligence Ws ah ©) cloud computing, Dy twee 13) Use Sy rtulicial intelli B) data analytics ©) Goud computing 1) bloekehain wy is a display of important data ur bar charts, tables, ar paws. \) \etificial inteltige By Dats analy 1 Cloud comput D) Data dashboard ing, multiple systemy simult 8) Virtualization C) Cloud computing D) taternet of thin Sy A grocery store wants to bei can analyze the patterns shopps ¥) artificial intelli Br swtwatiza ©) ud comput D) internet of things Stand ifs customers. In each shopping cart, the store installs a small gps tracking device so they © to buy groceries, The small device would be best classified as whieh of the following? Old is Gold © OO CamScanner + lig 4gusall~ {2024)Prepared By Don - Shaarawi Olce-var~-~ i First: Multiple Choice | s (five primary and four support) | 2 th a- Value chain, b- profitable operation. - The process of creating value for customers is the result of nine activities (taken together form a successful business. d- support system, AS 26- The value chain concept is composed of two types of a tics know a- primary and support. b- primary and secondary. ¢- support and value. d- technology and support. i 27- Which of the following is a primary activity i the val chain? a frastructure b- technology c- purchasing d- marketing and sales 28- In value chain analysis, what is - outbound logistics b- inbound logistics c- shippin, d- delivery 29- An AIS provides valu a- improving products oP Sei b- providing timely and ) c- creating new products. d- both A and B ‘of arranging the delivery of products to customers called? “ccs through information that increases quality and reduces costs. ‘¢ infors ision makers. Oldis Gold © CamScanner 3 li92 4>g.uaally ~~ (2024)Prepared By Don - Shaarawi 0122-6220500 is ; Figure 1-2 shows the factors . 's that influ the design of AIS, The di: directional arrow between the organizational culture and the AIS. The re is two-way interchange petween organizational culture and AIS ig ‘The reason for his (wo-way " that He MES should not inthy pe because the organiza ‘olling the fo the organisational cule, S culture influences the AIS, and likewise the Yagi pices the organization's culture by e0 cedue to the transfer of man de the MS impacts the organi ‘M+ The objective of the ms u ig a value chia important role. Logistics is both inbound and outbound in natu athe activities that transform inputy into final products or b- the activities that help eust c the activities mers to buy the oF 1 provide post-sale support to de the activities that consist of receiving, storing. organization to vods and/or servi 3 Weel hus an A ae the use of am expert system to} ruducty uF services. stone) J tributing the materials uyed ay inputs by the he relevant experts who can help with a particular client, work for 1, worldwide, e « firm infrastructure ae b- human resources activ « twehnolugy activity, de purchasing activity. Oldis Gold © CamScanner + lis 4>suallCD } —(2024)Prepared By Don - Shaarawl 0122-6220500 34- Within the value chain conceptual framework, AIS i 1 organization when it provides accurate and chain ac When the AIS pro} example of improved decision 1 b- improving the qual c- improving efficier I-A above yes P @- All ofthe above Chicos 35- According to Michael Porter, to be successful in the long a- deliver greater value to customers and/or create comparg b- maximize profits. ¢- maximize shareholder value. d- both B and C hown as a support activity. The AIS is of value to nely information to help support the five primary value jes information in a timely and ace’ Is an ng. and reducing the costs of products or ser eompany must falue at a lower cost. The most senior is Frid coconuts. Tuesday, as you might exp oops, I mean customers, who are unhappy with their coconuts. Wednesdy losses finished coconuts into the sea, whereupon they drift to the wholesaler. Thursday sends smoke S¥als to the wholesaler extolling the virtues of the latest production run of nuts that are drifting acrgssWghay\ Which of the following functions in the value chain is Monda performing? a- Inbound logistics b- Operations c- Outbound logistics d- Marketing and sales c- Service Oldis Gold © CamScanner 3 li92 4>g.uaallEp y = (2024)Prepared By Don - Shaarawi 0122-6220500 37- Which of the following functions in the a- Inbound logisties b- Operati ¢- Outbound logisties d- Marketing and sales ervie value chain is Friday perform 38- Which of the following functions in the value chain is Wednegday performing? c- Outbound logisti d- Marketing and sales e- Service 39- Which of the following functions in the va a- Inbound logisties b- Operations c- Outbound logistics d- Marketing and sales c- Service 1 is Thursday performing? 40- Which of the followii ins inthe value chain is Tuesday performing? a- Inbound logistics b- Operations ¢- Outbound logistics d- Marketing and sales e- Service Old is Gold © CamScanner 3 li92 4>g.uaall10500 i E> 2 ~ (20z4)Prepared By Don - Shaaraw! 0122-622 f y 41- Refer to the chart above, At what point, measured in terms: of the net cost of information, does formation overload begin? a-0 b-5 c 10 d-12 2 2 Sakigctes 42 Anything, York state Mt offers stylized, bow ique public relations services to upscale retailers in quaint New En} ajor source of revenue iva weekly newsletter that reports on current and projected tou Fel and spending patterns. Preparation of the newsletter requires study and analysis of weather condy and travel costs, His available at an annual subscripti hel bers. Preparation and distribution of the newsletter costs $12,000 annua $236.83 b- $44,998.10 c- Less then $63.16 - At least $300.00_ 43- The primary objective of accoyntingys to a- implement strong internal contr b- provide useful informa c- prey d- ensure the profitability, isipn makers. organization. Old is Gold © CamScanner 3 li92 4>g.uaallGap , ~ (2024)Prepared By Don - Shaarawi 0122-6220500 | a4 ccoun ards Board (FASB), in ils Statement of Fina Accounting Concepts ed accounting as a-an information ident el Hon, development, measurement, sind communication process. y (0 provide adequate controls to safeguard an organiza ig an information system, d- away to collect and ( sform data into useful information, 45- Which activity below would not be considered to be a "top" seco rk ae a+ process improvement b- input into future product n c- long-term strategie planning d- computer systems and operations cting ini gemenfAccountants shows that the most important conducted by the Institute of Nan activities performed by corporate accountants rel: a- customer and product profitabil b- internal consulting. c- process improvement. d- accounting systems and financial ing. as opposed to other IS courses, is on 47- The primary focus of an AIS co a- application of informati b- use of accounting softy: understanding how inf d- preparation of finanei ion technology can be used to improve AIS processes. st¥ements, Oldis Gold. © CamScanner 3 li92 4>g.uaall12-6220500 | 12 | co ~(2024)Prepared By Don - Shaaraw! 0! { { 48. include controls to ensure | a- safety and availability of data, b- marketing initiatives match corporate goals, ¢- information produced from data is accurate. d- both Aand C 49- A change in the AIS that makes information more easily meee idely ay organization is most likely to first influence the a+ organizational culture. b- customer bas c- eMternal financial statement users. D.. production activity. se he Ould wing characte: 50) A frantic Barney Rubble lost a large sale beet | was in stuck and ready to be shipped. Which of the the situation described above? A) relevant B) reliable C) complete D) timely understandable F) verifiable ssible ace Old is Gold © s the system to verify the inventory tistics of useful information is absent in CamScanner 3 bi92 4>s.uaallCedi ca } ~ (2024)Prepared By Don- Shaaraw! 01226220500 t porated identifie s the top corporate Es Ss new product development and product improvemien p zou Aine developed an innovation that will correct shortcoming in one of the company's led pro : i BINS Current Returi vestmet i e { innovation iy expectes tu enerate ROL of onl dase ‘eturn on Investment (ROM) is 15%, the produc y Sat result, the employee fails (o follow ups a raquil, awarding bonuses to employees based on ROL resulted in me " conflict, B) information overload, C) goal congruy nee, > D) decreased value of informat I\\ $2) Cheryl Metrejean has been the fk recently changed hands and the new owne been unable to reproduce financial reports ( 2d0ing, the auditors are concerned th of the following charact A) relevant B) reliable C) complete D) timely F) understandable F) verifiable G) accessible rs. Ownership of the firm ncial records. The audit |. While there is boys vbr Si) ation is least objectionable? 53) Which of the followin! reived on a timely basis j an understandable format cessible in unrea able format ry Oldis Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 § ..... isnot one of the three basic types of data about a specific sales (ransaction that should be captured by an Accounting Information System? A) name of the employee who completed the sale B) daily sales quota C) product sold D) date ) TW otp0 C51) ; ee 55) Paid time-off policies, job description: and procedures manuals niples of information necded to support key decisions in what business process? J A) hire and train employees B) acquire inventory C) sell merchandise D) collect payment from customers 56) Before a firm can identify the information nee effectively manage a process, the firm must A) understand the process . B) hire programmers. C) purchase computers and/or w D) obtain internet access. 57) Identify the A) job descriptions ! | ations. | B) vendor performance | | | hat is typically needed to acquire a building. arty) Je C) market coverage ity needs A) job descriptions B) vendor performance C) market coverage D) capacity needs | Old is Gold © | CamScanner 3 li92 4>g.uaall$5 2 = (2024)Prepared By Don - Shaarawi 0122-6220500 i 35) ce of information below that is typically needed to hire and train employees. | A) job descriptions B) vendor performance C) market coverage D) capacity needs 60) How can query languages be used to help make better decisions? A) They can suggest a course of action. B) They can gather relevant data for dec aking. C) They can help the decision maker to interpret results. D) They can model choose among alternative courses of action 61) What is a key decision that needs to be made with regay A) which credit cards to B) which employees to hire C) which public accounting firm to employ D) how much capital to acquire elling merchandise? 62) What is a key decision that nagX to be itl regards to acquiring inventory? A) which credit cards to accept B) which employees to hire C) which vendors to use D) how much capital to acquire 63) What is a key decisioi st) be made with regards to acquiring equipment? A) the location = B) pro forma income stateme) C) how much capital to a D) job descriptions Old is Gold © CamScanner 3 li92 4>g.uaallabe We yp Iplsw > ywl 0122- I Jel ys 235) |= (2nzPrepared By Don Shoara nS ~, ing information system typically of lowing is not a stakeholder with whom an accounting communicates directly? A) Wall Street industry analyst B) venture capitalist ©) company that supplies raw materials D) company that purchases finished youds for resale to consumers Jes (ransaction ied c most likely to pass between Lion systems ay 6220500 65) In which transaction cyele Wwould(customer. internal and external accounti A) the revenue eyele B) the expenditure eyele C) the human reso D) the financing 66) In which tra ietion cycle would info ventory purchases be most likely (o pass between internal and external accounting inform A) the revenue eyele B) the expenditure eyele C) the human resources / payroll ONG D) the financing cycle uld iB formation for paying employees be most likely to pass between pation systems? A) the revenue eycle B) the expenditure eyele™ ©) the human resourees D) the finaneing eyele Old is Gold © ee CamScanner 2 is &guuaall~ Weea)Prepared By Don - Shaarawi 0122-6220500 ws extern ssi itrmatin wen for paying interest be most likely to pass between internal a the revenue cycle B) the expenditure cycle C) the human resources / payroll cycle 1p) the financing cycle 69) In which transaction cycle would info internal and enter al accounting inforn A) the revenue cycle B) the expenditure cycle 2 C) the hut resources / payroll cycle D) the fi 1g cyele ation far burrowing 100 pe Sr likelytu pace bern tent | 1 systems? 70) In which transaction cycle would information internal and external accounting information sy: A) the revenue cycle B) the expenditure eycle C) the human resources / payroll eye D) the financing eyele 71) Identify the party below thpgjs no external to the firm. A) customer B) vendor C) government agencies jyiny employ ey be most likely to pass between .\ Oldis Gold © 7 CamScanner 3 li92 4>g.uaall« Shaaraw/ 0122-6220500 ~ (2024)Prepared By Don y below that is not internal to the firm. A) customer Bn ment C) employees Db) Cr 73) Obtaining financing from outside investors is part of which cy A) the revenue eycle B) the financing cycle C) the production cycle D) the payroll cycle 74) The is not a transaction cycle. A) general ledger and reporting cy B) expenditure cycle ©) revenue eyele D) human resources cycle 75) Identify the false statement belo B) Financial in: C) Every organization should ment of vendors are 76) Groups of related bus\ tivities such as the acquisition of merchandise and p a called B) economic cyele C) business events D) transactions. Old is Gold © eee CamScanner 2 li92 4>g.uaall- (2024)Prepared By Don - Shaarawi 0122-6220500 elds efficiencies when processing of a large number of transactions 7%" in eycle approach y because \) a large number of transactions within a given cycle can be categorized into a rela distinet typt B) transaction ¢ C) the tran D) transa Jy small number of les are casier to compuleriz jon cycle approach represents the natural order of busine jon cycles are easy to understand. Old is Gold- AIS 4TH S red by Don Sahrawi 5 78) Paying state payroll taxes is part of which transaction Qele? —~ A) human resources/payroll B) expenditure C) fi D) revenue 79) Who of the following would not be involved in pvenue cycle? A) accounts payable clerk B) customer C) cashier D) credit manager 80) Many modern accounting softy Aackages offer separate transaction cycle modules. What is the reason for this? A) Every organization does B) Most businesses do no C) The nature of a given*tra D) A properly designed Ady transactions. (\implement all of the available transaction cycle modules. he revenue cyele modul (of their AIS. faction cycle is the same ir ve of the type of organization. cs not use the concept of separate business transaction cyeles to process Old is Gold © CamScanner 3 li92 4>g.uaallCisne ~(2024)Prepared By Don - Shaarawi0122-6220500 7 formation plays major roles in managerial decision making A) identifying situations requiring management action. B) reducing uncertainty, C) providing a basis for choosing among alternative actions. D) all of the above 82) A well-designed AIS can improve the decision making in an organi Identify the statement below that describes a situation where an AIS may actually inhibit effecti o\making. . A) An AIS provides to its users an abundance of informatittg wi(hout an¥ fillc}ing or condensing of such information. B) An AIS identifies situations requiring management actio C) An AIS reduces uncertainty, and therefore accounting among alternative courses of action. D) An AIS provides information about the result feedback that can be used in future decision maki nition can provide a basis for choosing s decisions which provides decision makers with F prev an AIS adds value to an organization? 83) Which of the following is not ay exam fatpatient records from any computer terminal in the A) All employees at a hospital caigiNess and. hospital. B) A customer service representative O and salesperson's name while on ¢ CC) Suppliers are able to access! inventory automatically wh D) Client tay files are enclgy access code * ¢ history, payment history, id a customer's account data, purel he with the customer, to resolve issues quickly es dXta directly from the point-of-sale system of a ret ler and deliver le available on the CPA firm's network to any employee with an Oldis Gold © CamScanner 3 li92 4>g.uaall| oo } ~ {2024)Prepared By Don - Shaarawi 0122-6220500 pe) following is a true statement? A) Business strate Muences Al ion technology direetly influence 1 culture di etly influencs . but not information technology, s organizational culture, but not business strategy. clly influences business strategy, but not Ays, information technology, but not business strat D) AIS dir 85) Identify the primary reason that it i yield the greatest return, “\) because business strategy direct! se Most organi ‘ use a firm n irm to identy (FAIS improvements likely to Nuences AIS, but nl '¢ limited resource: infgrmatiotechholugy 86) An AIS that mak pressure for ization and defined procedures, B) centralization and autonomy. C) decentrali 87) Identify how firms use predic! A) to provide an educated in data wareht is expeeted to occur in the near future tion system Old is Gold © CamScanner 3 li92 4>g.uaall~ (2024)Prepared By Don - Shaarawi 0122-6220500 vantage, SE. technologie AY CVVP analysis 8) discounted cash flows C) predictive analysis D) economic order qu al advance that provides an opportunity (o gain a competitiy ntity (EOQ) 89) The American Institute of Certified Public Accountants (AICPA) Yas Fepgnized the importance of AIS and the major impact information technology has on the area of cosh So recognize individual CPAs who have met educational and experiential requirements Dhis area, h@groyp formally created the designation known as A) the Certified Information Auditor. B) the Certified Internal Auditor. C) the Certified Information ‘Technology Professional. D) the Certified Duta Processing Profe aviedge within an organization is Iy the relevant experts who can help wit 2 ing worldwide. 90) A good example of how an AIS is used to s! A) the use of a corporate database fo help § client. D) all of the above Oldis Gold © CamScanner 3 li92 4>g.uaallThe relationship between Business Processes, Key Decisions, and information Needs: | ~Susiness Processes Key Decisions Information Neos ‘Acquire capital ~ {2024)Prepared By Don - Shaarawi o122-6220500 Chek flow projectior How much : Find investors or borrow funds Loan amortization schedule Acquire building and equipment — Size of building Capacity need: i Amount of equipment and equipment price: } Rent or buy Market study How to depreciate Depreciation rule: _ Hire and train employees Experience requirements ‘Job deseripti i How to train employees Job history ‘Acquire inventory ‘How much to purchase ‘Market analy Inventory status report: What models to carry Vendor performance How to manage inventory vendors Whom to pay Vendors invoices i When to pay Accounts payable records | How much to pay Payment terms ‘Advertising and marketing Sell mercharcise Coltect payments from customers Pay omployeos Market coverage Cost analyzes Which media Content Markup percentage Offer sehouse credit Which creait cards 10 accept WoFenag credit, what terms How to handie cash recey Fro tora wcore statement Credit card cosis ates 8 Accounts rece vab.2 aging tenor Accounts rece vab ¢ "cores Tare worked inoue y Amount to pay Deductions and withnolanas Process paytott aishouse: oF use Ou Payroll a teguitements Pay taxes Sales tae requirements Tinat Toa’ Poy vendors wrom to pay Verwor somes Vira to pay Accounts payap e tecores How much to pay Payenwnt totes 49 Old is Gold © CamScanner 3 li92 4>g.uaall