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Study sets matching "accounting information chapter 2"

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Study sets matching "accounting information chapter 2"

14 terms
Accounting Information Systems Chapter 2 (ACCT 371)
activities
activity models
annotations
business analysis
represent specific steps in a business process
models that describe the sequence of workflow in a business p…
model elements that allow the modeler to add additional descr…
defining business requirements and evaluating improvements; a…
activities
represent specific steps in a business process
activity models
models that describe the sequence of workflow in a business p…
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
26 terms
Accounting Information Systems - Chapter 2
Data Processing Cycle
Source Documents
Turnaround Documents
Source Data Automation
The operations performed on data to generate meaningful and r…
Contain the initial record of a transaction that takes place.…
records of company data sent to an external party and then re…
The collection of transaction data in machine readable form a…
Data Processing Cycle
The operations performed on data to generate meaningful and r…
Source Documents
Contain the initial record of a transaction that takes place.…
40 terms
Accounting Information Systems Chapter 2
Data Processing Cycle
Source Documents
Turnaround Document
Three Facets of Business Activity Data…
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source- whe…
Records of company data sent to an external party & then retu…
1. Each activity of interest... 2. The resource(s) affected by e…
Data Processing Cycle
The four operations (data input, data storage, data processin…
Source Documents
Documents used to capture transaction data at its source- whe…
9 terms
Accounting Chapter 2: The Accounting Information System
Account
Chart of accounts
External transactions
General ledger
A summary of the effects of all transactions related to a par…
A list of all account names used to record transactions of a…
Transactions the firm conducts with a separate economic entity.
All accounts used to record the company's transactions.
Account
A summary of the effects of all transactions related to a par…
Chart of accounts
A list of all account names used to record transactions of a…
26 terms
Chapter 2: Qualities of Accounting Information
Net Profit
GAAP
The separate-entity assumption
The Monetary-unit assumption
Revenue - Expenses
Generally Accepted Accounting Principles
The firm's first financial records and financial statements a…
items on financial statements are measured in monetary units
Net Profit
Revenue - Expenses
GAAP
Generally Accepted Accounting Principles
13 terms
Accounting Chapter 2: The Accounting Information System
Account
Chart of accounts
External transactions
General ledger
A summary of the effects of all transactions related to a par…
A list of all account names used to record transactions of a…
Transactions the firm conducts with a separate economic entity.
All accounts used to record the company's transactions.
Account
A summary of the effects of all transactions related to a par…
Chart of accounts
A list of all account names used to record transactions of a…
15 terms
Chapter 2: The Accounting Information System
Relevance
Faithful Representation
comparability
consistency
capable of making a difference in a business decision
information should be complete, neutral, and free from error
allows external users to identify similarities and difference…
applying the same accounting principles for the same items ov…
Relevance
capable of making a difference in a business decision
Faithful Representation
information should be complete, neutral, and free from error
31 terms
Chapter 2 Accounting Information Systems
Data Processing Cycle
Source Documents
Turnaround Document
Source Data Automation
The four operations performed on data to generate meaningful…
Documents used to capture transaction data at its source when…
Records of company data sent to an external party and then re…
The collection of transaction data in machine readable form a…
Data Processing Cycle
The four operations performed on data to generate meaningful…
Source Documents
Documents used to capture transaction data at its source when…
5 terms
Accounting Information Systems Chapter 2 Appendix B (ACCT 371)
data flow diagram (DFD)
processes
terminators
data stores
graphical representation of the flow of data through a system
activities that use or generate data
external entities that are either sources or destinations for…
the physical or electronic repositories of data within the sy…
data flow diagram (DFD)
graphical representation of the flow of data through a system
processes
activities that use or generate data
17 terms
Chapter 2 - The Accounting Information System
Historical Cost Principle
Revenue recognition principle
Matching principle
Conservatism principle
Activities of a company are initially measured at their cost-…
Revenues are recorded and reported when they are earned, not…
Expenses are recorded and reported in the same period as the…
Avoid overstating assets or income when they prepare financia…
Historical Cost Principle
Activities of a company are initially measured at their cost-…
Revenue recognition principle
Revenues are recorded and reported when they are earned, not…
Chapter 2: Processing Accounting Information
The Accounting Cycle
Analyze
Record
Adjust
1. Analyze... 2. Record... 3. Adjust... 4. Report... 5. Close
Analyze transactions from source documents
Journalize transactions
Journalize adjusting entries
The Accounting Cycle
1. Analyze... 2. Record... 3. Adjust... 4. Report... 5. Close
Analyze
Analyze transactions from source documents
11 terms
Chapter 2 Accounting Information Systems
Data Processing Cycle
Source Documents
Turnaround Documents
Source Data Automation
Operations performed on data to generate meaningful and relev…
historically used to collect data about business activities
company output sent to an external party, often adding data t…
devices that capture transaction data in machine-readable for…
Data Processing Cycle
Operations performed on data to generate meaningful and relev…
Source Documents
historically used to collect data about business activities
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
41 terms
Accounting Information Systems Chapter 2
types of AIS
Source documents
3 function of source documents
Turnaround documents
1.manual... 2. legacy... 3. modern, integrated ITsystem
Documents used to capture transaction data at its source - wh…
1. input data... 2. triggers b p to begin... 3. permanent audit trail
Records of company data sent to an external party and then re…
types of AIS
1.manual... 2. legacy... 3. modern, integrated ITsystem
Source documents
Documents used to capture transaction data at its source - wh…
17 terms
Chapter 2 - The Accounting Information System
Historical Cost Principle
Revenue recognition principle
Matching principle
Conservatism principle
Activities of a company are initially measured at their cost-…
Revenues are recorded and reported when they are earned, not…
Expenses are recorded and reported in the same period as the…
Avoid overstating assets or income when they prepare financia…
Historical Cost Principle
Activities of a company are initially measured at their cost-…
Revenue recognition principle
Revenues are recorded and reported when they are earned, not…
22 terms
Chapter 2: Processing Accounting Information
Accounting cycle
Fiscal year
Calendar year
Accounting transaction
A sequence of activities undertaken by company accountants to…
The annual accounting period used by a business.
A fiscal year that ends on December 31.
An economic event that requires accounting recognition; an ev…
Accounting cycle
A sequence of activities undertaken by company accountants to…
Fiscal year
The annual accounting period used by a business.
20 terms
Chapter 2 Key Accounting Information
Classified Balance Sheet
Current Assets
Operating Cycle
Long term investments
(Assets) Current assets, long-term investments, property, pla…
Assets that a company expects to convert to cash or use up wi…
The average time required to go from cash to cash in producin…
investments in stocks and bonds of other corporations that ar…
Classified Balance Sheet
(Assets) Current assets, long-term investments, property, pla…
Current Assets
Assets that a company expects to convert to cash or use up wi…
39 terms
Accounting Information Systems Chapter 2
Data Processing Cycle
Source Documents
Turnaround Document
Four Parts of the Data Processing Cycle
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source- whe…
Records of company data sent to an external party & then retu…
1. Data Input ... 2. Data Storage ... 3. Data Processing ... 4. Inform…
Data Processing Cycle
The four operations (data input, data storage, data processin…
Source Documents
Documents used to capture transaction data at its source- whe…
17 terms
Accounting Chapter 2: Useful Information
framework of the FASB and IASB: the pr…
according the the FASB, useful informa…
the quality of information that indica…
information is considered relevant if…
to provide financial information that is USEFUL to investor a…
relevance and faithful representation
Relevance
predictive value and confirmatory value (sometimes materiality)
framework of the FASB and IASB: the pr…
to provide financial information that is USEFUL to investor a…
according the the FASB, useful informa…
relevance and faithful representation
46 terms
Accounting Information Systems Chapter 2
4 parts of data processing cycle
Steps in processing Input
info collected for an activity includes
Source documents
1) data input... 2) data processing... 3) information output... 4)data…
1) capture transaction data triggered by business activity... 2)…
1) activity of interest... 2) resources affected... 3) people who p…
captures data at the source when the transaction takes place…
4 parts of data processing cycle
1) data input... 2) data processing... 3) information output... 4)data…
Steps in processing Input
1) capture transaction data triggered by business activity... 2)…
43 terms
Accounting Information System Chapter 2
Data Processing Cycle
Four steps of data processing cycle
The first step in processing input
Data must be collected about three fac…
the operation performed on data to generate meaningful and re…
data input ... data storage ... data processing ... information output
capture transaction data and enter them into the system... data…
1. each activity of interest ... 2. the resource(s) affected by…
Data Processing Cycle
the operation performed on data to generate meaningful and re…
Four steps of data processing cycle
data input ... data storage ... data processing ... information output
22 terms
Accounting Information Systems: Chapter 2
additional symbols
analytic flowchart
basic symbols
branching table
group of flowchart symbols consisting of miscellaneous symbol…
charts the flow of documents and processing between different…
one of the four groups of flowchart symbols consisting of sym…
tabular technique used to represent a decision function in a…
additional symbols
group of flowchart symbols consisting of miscellaneous symbol…
analytic flowchart
charts the flow of documents and processing between different…
39 terms
Chapter 2 The Accounting Information System
Relevance
Faithful Representation
four characteristics
Economic Entity Assumption
information capable of making a difference in business decision
information that is complete, unbiased, and free from error
comparability, verifiability, timlessness, understandability
each company is accounted for separately from its owners
Relevance
information capable of making a difference in business decision
Faithful Representation
information that is complete, unbiased, and free from error
23 terms
Accounting Information Systems - Chapter 2
Data processing cycle
source documents
turnaround documents
source data automation
the four operations (data input, data storage, data processin…
documents used to capture transaction data at its source - wh…
records of company data sent to an external party and then re…
the collection of transaction data in machine readable form a…
Data processing cycle
the four operations (data input, data storage, data processin…
source documents
documents used to capture transaction data at its source - wh…
40 terms
Accounting Information Systems Chapter 2
Data Processing Cycle
Source Documents
Turnaround Document
Three Facets of Business Activity Data…
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source- whe…
Records of company data sent to an external party & then retu…
1. Each activity of interest... 2. The resource(s) affected by e…
Data Processing Cycle
The four operations (data input, data storage, data processin…
Source Documents
Documents used to capture transaction data at its source- whe…
31 terms
Accounting Information Systems: Chapter 2 Vocab
Data Processing Cycle
Source Documents
Turnaround Documents
Source Data Automation
The four operations (data input, data storage, data processin…
Document used to capture transaction data at its source-- Whe…
Records of company data sent to external party and then retur…
The collection of transaction data in machine-readable form a…
Data Processing Cycle
The four operations (data input, data storage, data processin…
Source Documents
Document used to capture transaction data at its source-- Whe…
16 terms
Accounting Information Systems Chapter 2
Domain Address
Internet Protocol (IP)
Elements of an IP Address
Internet Corporation for Assigned Name…
Also known as a Uniform Resource Locator (URL), is a text add…
This is a a numeric address. It is a direct translation from…
1) Contains a geographic region... 2) an organization number... 3)…
This organization maintains the official registry of domain n…
Domain Address
Also known as a Uniform Resource Locator (URL), is a text add…
Internet Protocol (IP)
This is a a numeric address. It is a direct translation from…
26 terms
Accounting Information Systems - Chapter 2
Data Processing Cycle
Source Documents
Turnaround Documents
Source Data Automation
The operations performed on data to generate meaningful and r…
Contain the initial record of a transaction that takes place.…
records of company data sent to an external party and then re…
The collection of transaction data in machine readable form a…
Data Processing Cycle
The operations performed on data to generate meaningful and r…
Source Documents
Contain the initial record of a transaction that takes place.…
40 terms
Accounting Information Systems Chapter 2 Key Terms
Entity-Relationship Model (E-R Model)
Entity-Relationship Diagram (ERD)
Business Rule
1. Declarative... 2. Precise... 3. Atomic... 4.…
A logical representation of the data for an organization or f…
A graphical representation of an entity-relationship model.
A statement that defines or constrains some aspect of the bus…
What are the characteristics of a good Business Rule?
Entity-Relationship Model (E-R Model)
A logical representation of the data for an organization or f…
Entity-Relationship Diagram (ERD)
A graphical representation of an entity-relationship model.
24 terms
Chapter 2 - Characteristics of Accounting Information
Net Profit
Characteristics of accounting informat…
Historical Cost Principal
Revenue Recognition Principle
Net Profit equals all revenues minus all expenses.
Accounting information must be:... Relevant... Reliable... Comparable
Historical Cost Principal means that transactions are recorde…
Revenue Recognition Principle says that revenue is RECOGNIZED…
Net Profit
Net Profit equals all revenues minus all expenses.
Characteristics of accounting informat…
Accounting information must be:... Relevant... Reliable... Comparable
16 terms
Accounting Information System Chapter 2
Data Processing Cycle
Source Documents
Turnaround Document
Source Data Automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data Processing Cycle
The four operations (data input, data storage, data processin…
Source Documents
Documents used to capture transaction data at its source - wh…
31 terms
Accounting information systems chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data Automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form i…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
32 terms
Accounting Information Systems - Chapter 2
Data Processing Cycle
3 Facets that must be collected in a b…
Source Documents
Turnaround Documents
the FOUR operations: Data input, Data storage, Data processin…
1. activity of interest... 2. resources affected by each activit…
documents used to capture transaction data at its source when…
record of company data sent to an external party and then ret…
Data Processing Cycle
the FOUR operations: Data input, Data storage, Data processin…
3 Facets that must be collected in a b…
1. activity of interest... 2. resources affected by each activit…
35 terms
Chapter 2 - The Accounting Information System
Accounting Cycle
Relevance
Faithful representation
Comparability
Procedures that a company uses to transform the results of it…
Capable of making a difference in a business decision by help…
Information should be complete, neutral, and free from error.
Allows comparisons to be made between companies.
Accounting Cycle
Procedures that a company uses to transform the results of it…
Relevance
Capable of making a difference in a business decision by help…
52 terms
Accounting Information Systems Chapter 2
accounting information system
attribute
bar code
batch processing
a system that captures, records, processes, and reports accou…
characteristics of the entity, for example and employee's las…
a printed code consisting of a series of vertical, machine-re…
requires that all similar transactions are grouped together f…
accounting information system
a system that captures, records, processes, and reports accou…
attribute
characteristics of the entity, for example and employee's las…
29 terms
Accounting Information Systems Chapter 2
Data processing cycle
Source documents
Turnaround documents
Source data automation
The four operations (data input, data storage, data processin…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
The collection of transaction data in machine-readable form a…
Data processing cycle
The four operations (data input, data storage, data processin…
Source documents
Documents used to capture transaction data at its source - wh…
30 terms
Accounting Information Systems Chapter 2
Systems Techniques
Two Basic Components of an Audit Engag…
Interim Audit
Financial Statement Audit
tools used in the analysis, design, documentation of systems;…
interim audit and financial statement audit.
establishing the degree to which the organization's internal…
involves substantive testing; direct verification of financia…
Systems Techniques
tools used in the analysis, design, documentation of systems;…
Two Basic Components of an Audit Engag…
interim audit and financial statement audit.
9 terms
Accounting Chapter 2: The Accounting Information System
Account
Chart of accounts
External transactions
General ledger
A summary of the effects of all transactions related to a par…
A list of all account names used to record transactions of a…
Transactions the firm conducts with a separate economic entity.
All accounts used to record the company's transactions.
Account
A summary of the effects of all transactions related to a par…
Chart of accounts
A list of all account names used to record transactions of a…
73 terms
Accounting Information Systems (Chapter 2)
The four operations (data input, data…
What are the 4 operations of the Data…
What is the first step in processing i…
What is the data capture process usual…
Data Processing Cycle
-Data input... -Data storage... -Data processing... -Information output
To capture transaction data and enter them into the system
A business activity
The four operations (data input, data…
Data Processing Cycle
What are the 4 operations of the Data…
-Data input... -Data storage... -Data processing... -Information output
60 terms
Accounting Information Systems Chapter 2
What three transaction cycles exist in…
Name the major subsystems of the expen…
Identify and distinguish between the p…
Name the major subsystems of the conve…
The expenditure cycle, the conversion cycle, and the revenue…
1. Purchases (AP) system, 2. Cash disbursement system, 3. Pay…
B2B expenditure transactions are based on a credit rlationshi…
1. Production system 2. Cost accounting system
What three transaction cycles exist in…
The expenditure cycle, the conversion cycle, and the revenue…
Name the major subsystems of the expen…
1. Purchases (AP) system, 2. Cash disbursement system, 3. Pay…
Chapter 2: Presenting Accounting Information Vocabulary
Account
Accounting cycle
Accounting transaction
Calendar year
A record of the additions, deductions, and balances or indivi…
A sequence of activities undertaken by company accountants to…
An economic event that requires accounting recognition; an ev…
A fiscal year that ends on December 31.
Account
A record of the additions, deductions, and balances or indivi…
Accounting cycle
A sequence of activities undertaken by company accountants to…
32 terms
Chapter 2: Business Processes and Accounting Information
Appraisal Cost
Accounts Payable Turnover
Accounts Receivable Turnover
Balanced Scorecard Approach
The cost incurred to detect mistakes as early in the process…
A measure of the speed at which the company pays its obligati…
A measure of the speed at which the company receives cash fro…
A process for translating a company's strategy into measurabl…
Appraisal Cost
The cost incurred to detect mistakes as early in the process…
Accounts Payable Turnover
A measure of the speed at which the company pays its obligati…
31 terms
Chapter 2 - Business Processes and Accounting Information
appraisal cost
accounts payable turnover
accounts receivable turnover
balanced scoreboard approach
the cost incurred to detect mistakes as early in the process…
a measure of the speed at which the company pays its obligati…
a measure of the speed at which the company receives cash fro…
a process for translating a company's strategy into measurabl…
appraisal cost
the cost incurred to detect mistakes as early in the process…
accounts payable turnover
a measure of the speed at which the company pays its obligati…
60 terms
Accounting Information System 13 Romney Chapter 2
What are the four major steps in the D…
The first step in Processing Transaction
Data Input
Source Documents
Data Input, Data Storage, Data Processing, Information Output
To Capture the Data
capture transaction data and enter them in the system. Data m…
Used To Capture data at the beginning of the transaction
What are the four major steps in the D…
Data Input, Data Storage, Data Processing, Information Output
The first step in Processing Transaction
To Capture the Data
31 terms
Chapter 2 "Business Process and Accounting Information"
Planning Phase
Performing Phase
Evaluating Phase
What are the two levels of the Plannin…
Management determines its objectives and the means of achievi…
Occurs when management implements the plans by actually doing…
Management compares the results of performing activities with…
Strategic Planning and Operating Planning
Planning Phase
Management determines its objectives and the means of achievi…
Performing Phase
Occurs when management implements the plans by actually doing…
36 terms
WGU C242 Accounting Information Systems Chapter 2
data processing cycle
Data must be collected about three fac…
source documents
turnaround document
The four operations (data input, data storage, data processin…
1. Each activity of interest... 2. The resource(s) affected by e…
Documents used to capture transaction data at its source - wh…
Records of company data sent to an external party and then re…
data processing cycle
The four operations (data input, data storage, data processin…
Data must be collected about three fac…
1. Each activity of interest... 2. The resource(s) affected by e…
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