Accounting Information

Systems- CAC 4104

Mr. C. Ncube and Mrs. F. Shumba
(Accounting Information Systems
– CAC 4104)

1
Data Vs. Information
Difference between data and
information
- Data is a raw fact like a number or
statement such as a date or
measurement
Necessary for business to record data

2
What is information then?
information is data that have been
processed so that they are meaningful
(Oz and Jones 2008)
Data is collected, transformed to
produce information
e.g a sales forecast or a financial
statement are examples of information

3
Generation of Information
Information is generated through
transformation of data
- Achieved through a number of different transformation or data processes

Examples include aggregating

- Summerizing data by such means as taking an average value of a group
of numbers
- Classification places data into categories such as on-time and late
deliveries

Data can be chosen on set criteria such as

geographical location of customers.

4
Is All Information Useful?
Not all information can be considered useful
Difference between «good» and «bad» info
depends on whether it has some or all
attributes of info quality
- Attributes can be related to timing, content and form of info

Timeliness: if it’s late or too early, it’s useless

Content refers to accuracy and relevance of info
Form refers to clarity and appropriateness of info to
intended recipient(s)