Test I Test II

1. external A.

2. data collection 1. T

3. data sources 2. T

4. data attribute 3. S

5. downward flow 4. I

6. horizontal flow 5. I

7. system B.
8. information system 1. MRS
9. financial transactions 2. MRS
10. non-financial transactions 3. FRS
11. transaction 4. TPS
12. upward flow 5. TPS

13. data processing

14. external

15. internal
16. database model

17. financial reporting system

18. transaction support system

19. transaction support system

20. management reporting system
21. distributed data processing
22. centralized data processing
23. database model
24. file
25. record
Test III
6 elements of a system
1. multiple components-A system must contain more than one part. For example, a yo-yo carved from a single piece of woo
a string is a system. Without the string, it is not a system.
2. relatedness- A common purpose relates the multiple parts of the system. Although each part functions independently of
parts serve a common objective. If a particular component does not contribute to the common goal, then it is not part of t
3. system vs subsystem-The distinction between the terms system and subsystem is a matter of perspective. For our purpos
are interchangeable. A system is called a subsystem when it is viewed in relation to the larger system of which it is a part. L
subsystem is called a system when it is the focus of attention.
4. purpose-e. A system must serve at least one purpose, but it may serve several. Whether a system provides a measure of
power, or information, serving a purpose is its fundamental justification. When a system ceases to serve a purpose, it shou

5. system decomposition-Decomposition is the process of dividing the system into smaller subsystem parts. This is a conven
representing, viewing, and understanding the relationships among subsystems. By decomposing a system, we can present t
system as a hierarchy and view the relationships between subordinate and higher-level subsystems. Each subordinate subs
one or more specific functions to help achieve the overall objective of the higher-level system.
6. subsystem interdependency- A system’s ability to achieve its goal depends on the effective functioning and harmonious i
subsystems. If a vital subsystem fails or becomes defective and can no longer meet its specific objective, the overall system
objective.
3 participants in systems development and maintenance
1. internal users
2. trading partners
3. stakeholders
3 roles of accountant in the information system
1. users-In most organizations, the accounting function is the single largest user of IT. All systems that process financial tran
the accounting function in some way. As end users, accountants must provide a clear picture of their needs to the professio
their systems.

2. system designers-An appreciation of the accountant’s responsibility for system design requires a historic perspective that
computer as a business information tool. Traditionally, accountants have been responsible for key aspects of the informatio
including assessing the information needs of users, defining the content and format of output reports, specifying sources o
the appropriate accounting rules, and determining the controls necessary to preserve the integrity and efficiency of the inf
3. auditors-Auditing is a form of independent attestation performed by an expert who expresses an opinion about the fairn
financial statements. Public confidence in the reliability of internally produced financial statements rests directly on their b
an independent expert auditor. This service is often referred to as the attest function.
3 AIS subsystems
1. transaction processing system- it is central to the overall function of the information system by converting economic eve
transactions; recording financial transactions in the accounting records and distributing essential financial information to o
personnel to support their daily operations.

2. financial reporting system-The financial reporting system measures and reports the status of financial resources and the
resources. It communicates this information primarily to external users. This type of reporting is called nondiscretionary be
organization has few or no choices in the information it provides. Much of this information consists of traditional financial s
returns, and other legal documents.

3. management reporting system- It provides the internal financial information needed to manage a business. Managers m
immediately with many day-to-day business problems, as well as plan and control their operations. Managers require differ
for the various kinds of decisions they must make. Typical reports produced by it include budgets, variance reports, cost-vo
analyses, and reports using current cost data. This type of reporting is called discretionary reporting because the organizati
what information to report and how to present it.
Test IV
1. TRUE

2. FALSE

3. TRUE

4. FALSE

5. FALSE

6. TRUE

7. TRUE

9. FALSE
10. TRUE
11. TRUE
12. FALSE

13. FALSE

14. FALSE

15. FALSE
16. TRUE

17. TRUE

18. FALSE

19. FALSE
20. FALSE