WGU D217 Accounting Information Systems 2023

WGU D217 Accounting Information Systems 2023 Leave the first rating Students also studied Terms in this set (162) Western Governors UniversityD 217 Save WGU D217 Accounting Information ...163 terms kristineburrow Preview D217 Accounting Information Syste...226 terms vanessa_harris263 Preview D217 - Pre-assessment 70 terms Audra_RohnPreview D215 Au 70 terms Aci Fundamental objectives of a businessTo support the firms day to day operations To support management decision making To support stewardship function of management Two subdivisons of "Information Systems"Accounting information system management information system Accounting Information System structureGeneral Ledger/Financial Reporting System (GL/FRS) Transactions Processing System (TPS) Management Reporting System Transactions Processing System (TPS) Structure Expenditure Cycle Conversion Cycle Revenue Cycle Expenditure CyclePurchase System Cash Disbursement System Payroll Processing System Fixed Asset System

Conversion CycleCost Accounting System Production Planning and Control System Revenue CycleSales Processing System Cash Receipts System management Information system structureFinancial Management Systems Marketing Systems Distribution Systems Human Resource Systems financial transactionsan economic event that affects the assets and equities of the organization, is reflected in its accounts, and is measured in monetary terms Nondiscretionary reportingA type of reporting in which the organization has few or no choices in the information it provides. Much of this information consists of traditional financial statements, tax returns, and other legal documents.Within General Ledger/Financial Reporting Systems Discretionary ReportingA type of reporting in which the organization can choose what information to report and how to present it In Management reporting system nonfinancial transactionsevents that do not meet the narrow definition of a financial transaction General Model for AISModel that describes all information systems, regardless of their technological

architecture. The elements of the general model are:

end users data sources data collection data processing database management information generation feedback Data Collectioncapturing and gathering all data necessary to complete the processing of transactions Data Sourcesfinancial transactions that enter the info systems from internal or external sources data processinggroup that manages the computer resources used to perform day to day processing of transactions Database managementData Attribute à collection of attributes = record à collection of record = file

Information Generationprocess of compiling, arranging, formatting, and presenting information to users Segments of functional units of business organization Materials Management, Production, Marketing Distribution Personnel Finance Attest Service vs Advisory ServiceAdvisory services are professional services offered by public accounting firms to improve their client organizations' operational efficiency and effectiveness.Unbounded.Independent attestation performed by the auditor, who expresses an opinion about the fairness of a company's financial statements Substantive Teststests that determine whether database contents fairly reflect the organization's transactions Expenditure Cycle ActivitiesIncurs expenses in exchange for resources Ordering materials, supplies, and services Receiving materials, supplies, and services Approving supplier invoices Cash disbursements Purchases/AP Cash Disbursement System Payroll System Fixed Assets Conversion Cycle ActivitiesTurning raw materials into finished goods Production Planning and Control Cost Accounting Revenue Cycle ActivitiesSales Order Processing Cash Receipts the direct exchange of finished goods or services for cash in a single transaction between a seller and a buyer. More complex revenue cycles process sales on credit. Many days or weeks may pass between the point of sale and the subsequent receipt of cash. This time lag splits the revenue transaction into two phases; the physical phase + the financial phase Types of Digital Data StorageMaster Files, Transactions Files, and Reference Files Master Filecontains account data. The general ledger and subsidiary ledgers are examples of master files. Data values are updated (changed) by transactions.Transaction Filea temporary file of transaction records used to update data in a master file. Sales orders, inventory receipts, and cash receipts are examples of transaction files. The actual file update process is explained later in the chapter.

Reference Filestores data that are used as standards for processing transactions. For example, the payroll program may refer to a tax table to calculate the proper amount of withholding taxes for payroll transactions. Other reference files include price lists used for preparing customer invoices, lists of authorized suppliers, employee rosters, customer credit history files for approving credit sales, and freight charges used for calculating the cost of shipments to customers.File StructuresFlat File Approach or Database Flow Chart of Manual Activites Flow Chart of Computer Process Batch SystemsAssemble transactions into groups for processing, a time lag will always exist between the point at which an economic event occurs and the point at which it is processed by the system and reflected in the firm's accounts. The length of lag (minutes or weeks) depends on the frequency of processing Real-time systemsProcess transactions individually at the moment the event occurs; therefore, no time lags exist between occurrence and processing. On the other hand, a large portion of total programming costs for real-time systems are incurred in designing user interfaces. must be user-friendly, forgiving, and easy to work with. Real-time processing of large volumes of transactions can create operational inefficiencies Data Coding SchemesSequential Coding, Block Codes, Group Codes, Alphabetic Codes, Mnemonic Codes Sequential CodingAssigns numbers to objects in chronological sequence; also known as serial coding. Also called serial coding.Advantage: supports batch reconciliations (ie. Sales orders) at the end of process, detects gaps in sequence.

Disadvantages: codes carry no information beyond their order in sequence,

difficult to change, difficult to renumber, inappropriate for grouped records logically where additions and subtractions occur regularly.Block Codesblocks of numbers are reserved for specific categories of data Advantage: allows for the insertion of new codes within a block without having to reorganize the entire coding structure Disadvantage: As with the sequential codes, the information content is not readily apparent