DIMAANO, MARIO JR ACCOUNTING INFORMATION SYSTEM

2A11 MODULE1
1. What are the different flows of information in an organization?
Generally, there two flows of information in an organization, the external and
internal flow. External Flows are described as flows from people outside the
business such as customers, suppliers who engaged in trading transaction which
are considered as one of the day-to-day operations. This further includes information
from the organization to the interested parties or stakeholders like the government,
stockholders and etc. Internal Flows, on the other hand focus on inter-organization
flows of information. It may flow Horizontally and vertically where horizontal flows
deals with information that are usually in the same level (ex. Receipt of information
of the inventory department from salesclerk in terms of stock inquiries). Internal
Information flows vertically when transaction takes place between operations
management or middle management to top management or vice versa. Example of
these are sales report and distribution of company budgets.

2. What is the difference between financial and non-financial transactions?

Financial transactions tend to be monetary in nature, these transactions tend to
include transactions that affects the accounting component of the business. Most of
financial transactions are usually recorded in the Financial Statements. Examples of
financial transactions are sale transaction, expenditure for company’s operation,
payment of wages. Non-financial transactions are the opposite of financial transactions
where it usually represents transaction that do not affect the financial records of the
business. These does not contribute directly to the financial condition of the
organization. Example of these are seminars given to employee trainees, holding
employee gatherings and meetings and etc.

3. Which is broader, Information Systems or the Accounting Information

Systems? Explain your answer.
Information systems is broader since it encompasses Accounting Information
Systems and Management Information system which are the 2 major subsystem of
Information systems. Basically, Information Systems deals with the whole information
including non-financial transactions under Management information System. Whereas
Accounting Information System which is a subsystem under Information systems deals
with more specific information that the Information systems. Accounting information
systems doesn’t deal with non-financial transactions unlike the Information System.