tailieunhanh - Lecture Accounting information systems (13/e) – Chapter 1: Accounting information systems: An overview

This chapter explain what an accounting information system (AIS) is and describe the basic functions it performs, discuss why studying the design and management of an AIS is important, explain the role played by the AIS in a company’s value chain and discuss ways that the AIS can add value to a business, describe and contrast the basic strategies and strategic positions that a business can adopt. | Accounting Information Systems: An Overview Chapter 1 1-1 Learning Objectives Distinguish between data and information: Understand the characteristics of useful information. Explain how to determine the value of information. Explain fundamental decisions an organization makes: Understand basic information needed to make them. Identify the transactional information that passes between internal and external parties and an AIS. Describe the major business processes present in most companies. Explain what an accounting information system (AIS) is and describe its basic functions. Discuss how an AIS can add value to an organization. Explain how an AIS and corporate strategy affect each other. Explain the role an AIS plays in a company’s value chain. 1-2 Data vs. Information Data are facts stored in the system A fact could be a number, date, name, and so on. For example: 2/22/14 ABC Company, 123, 99, 3, 20, 60 1-3 Data vs. Information The previous slide just showed facts, if we put those . | Accounting Information Systems: An Overview Chapter 1 1-1 Learning Objectives Distinguish between data and information: Understand the characteristics of useful information. Explain how to determine the value of information. Explain fundamental decisions an organization makes: Understand basic information needed to make them. Identify the transactional information that passes between internal and external parties and an AIS. Describe the major business processes present in most companies. Explain what an accounting information system (AIS) is and describe its basic functions. Discuss how an AIS can add value to an organization. Explain how an AIS and corporate strategy affect each other. Explain the role an AIS plays in a company’s value chain. 1-2 Data vs. Information Data are facts stored in the system A fact could be a number, date, name, and so on. For example: 2/22/14 ABC Company, 123, 99, 3, 20, 60 1-3 Data vs. Information The previous slide just showed facts, if we put those facts within a context of a sales invoice, for example, it is meaningful and considered information. Invoice Date : 2/22/14 Invoice #: 123 Customer: ABC company Item # Qty Price 99 3 $20 Total Invoice Amount $60 1-4 Value of Information Information is valuable when the benefits exceed the costs of gathering, maintaining, and storing the data. Benefit (., improved decision making) > Cost (., time and resources used to get the information) 1-5 What Makes Information Useful? There are seven general characteristics that make information useful: Relevant: information needed to make a decision (., the decision to extend customer credit would need relevant information on customer balance from an A/R aging report) Reliable: information free from bias Complete: does not omit important aspects of events or activities Timely: information needs to be provided in time to make the decision 1-6 What Makes Information Useful? Understandable: information must be presented in a meaningful manner