Week 1-2

I. True or False
1. True
2. False
3. True
4. True
5. False
Let’s Analyze
II. Questions:
1. It primarily involves the collection, storage, and processing of financial and accounting
data used by internal users to report information to investors, creditors, and tax
authorities. Also, it is generally a computer-based method for tracking accounting activity
in conjunction with information technology resources.
2. The software component of an AIS is the computer programs used to store, retrieve,
process, and analyze the company's financial data. Before there were computers, an AIS
was a manual, paper-based system, but today, most companies are using computer
software as the basis of the AIS.
3. Quality, reliability, and security are key components of effective AIS software. Managers
rely on the information it outputs to make decisions for the company, and they need high-
quality information to make sound decisions.
4.
A. AIS People – The people in an AIS are the system users. An AIS helps
the different departments within a company work together.
B. Procedures and Instructions - The procedure and instructions of an AIS
are the methods it uses for collecting, storing, retrieving, and processing
data.
C. AIS Data - An AIS must have a database structure to store information,
such as structured query language (SQL), which is a computer language
commonly used for databases.
D. AIS Software - A The software component of an AIS is the computer
programs used to store, retrieve, process, and analyze the company's
financial data.
E. IT Infrastructure - Information technology infrastructure is just a fancy
name for the hardware used to operate the accounting information
system.
 F. Internal Controls - The internal controls of an AIS are the security
measures it contains to protect sensitive data. These can be as simple as
passwords or as complex as biometric identification.

In a Nutshell
3. With a well-designed AIS, everyone within an organization can access the same system and
retrieve the different information.
4. The IT Infrastructure of an AIS are the methods it uses for collecting, storing, retrieving, and
processing data.
5. A well-designed AIS allows a business to run smoothly on a day-to-day basis while a poorly
designed AIS can hinder its operation.
6. Information technology infrastructure is just a fancy name for the hardware used to operate the
accounting information system.
7. If an existing program does not meet a company's needs, the software can also be developed
in-house with substantial input from end-users or can be developed by a third-party company
specifically for the organization.
8. Quality, reliability, and security are key components of effective AIS software.
9. With a well-designed AIS, everyone within an organization can access the same system and
retrieve the same information.
10. The people in an AIS are the system users. An AIS helps the different departments within a
company work together.

Week 3-4

I. True or False
1. False
2. .True
3. False
4. True
5. False
II. Multiple Choice
1. C
2. A
3. C
4. A
5. A
Questions:
6. Distinguish between a system and a procedure.
Systems are what’s used to execute the process while process is a conceptual sequence of
events that enables a people in a business to do what they do. Most of the time, you’re not aware
they’re there until someone like me comes and starts making them obvious. For example, the
way a support request gets handled is a process. There’s an input, some work sequences, and an
output.
7. Distinguish between procedure and method.
A procedure is a set of prescribed actions or events that must be enacted or take place to achieve
a certain result. A method is a style or set of assumptions with which one acts or achieves a goal.
The scientific method, for example, is a set of actions that do not necessarily need to be followed
so long as the basic assumptions behind the method are adhered. A recipe is an example of a
procedure, meant to be followed exactly as prescribed.
8. What are the different criteria used in evaluating the data processing
alternatives? Discuss each.
A. Real-time operating systems typically refer to the reactions to data. A system can
be categorized as real-time if it can guarantee that the reaction will be within a
tight real-world deadline, usually in a matter of seconds or milliseconds.
B. Batch processing is the processing of a large volume of data all at once. The data
easily consists of millions of records for a day and can be stored in a variety of
ways (file, record, etc). The jobs are typically completed simultaneously in non-
stop, sequential order. An example of a batch processing job is all of the
transactions a financial firm might submit over the course of a week. It can also
be used in payroll processes, line item invoices, and supply chain and fulfillment.
C. Stream processing is the process of being able to almost instantaneously analyze
data that is streaming from one device to another. This method of continuous
computation happens as data flows through the system with no compulsory time
limitations on the output. With the almost instant flow, systems do not require
large amounts of data to be stored.
In a nutshell
1. Data is consist of raw facts or figures obtained from one or more sources.
2. Information is consists of processed data.
3. Every data processing application whether manual or electronic has four basic elements.
These are input, processing, output, and storage.
4. The development of telecommunications that is, the electronic transmissions of
information by radio, wire, laser, microwave, fiber optics has made possible the
electronic transfer of information between computers.
5. Timesharing involves accessing another organization’s computer through terminal
devices. Computer shares its time with a number of users.
6. Input pertains to the act of acquiring or capturing data which will be transformed into
meaningful information.
7. Mainframe commonly refers to the processing unit plus other components contained in
the same physical cabinet at the processing unit in a large computer system.
8. Processing pertain to the operations required to transform data into information required
by users.