List of Most Important Topics to Review for Exam

Topics: SQL, Database, Database normalization Pages: 5 (886 words) Published: June 1, 2013
AIS 424A- Winter 2013
List of Most Important Topics to Review for Exam I

Chapters 1&2:
-The three basic objectives of AIS
1.To effectively collect and store data about a company’s activities, transactions, and resources -Capture transaction data on source documents.
-Record transaction data in journals, which present a chronological record of what occurred. -Post data from journals to ledgers, which sort data by account type. 2. To transform data into information useful to management in internal decision making: In classic (manual) systems, this information is provided in the form of reports that fall into two main categories: –financial statements

managerial reports
3.To provide adequate internal controls:
a)Safeguard organizational assets
b)Ensure that the information produced by the system is reliable. c)Ensure that business activities are performed efficiently and in accordance with management’s objectives.

-Major steps of the accounting cycle

-
-Source documents by cycle
REVENUE Function
-

Expenditure Cycle

HR:

General Ledger & Reporting System

-
-Designing a Chart of accounts
First digit: represents the major types of accounts
Second digit: represent the subaccounts within major types of account. Third digit: represents the specific or unique names of the accounts

-Types of journals
cash receipts journal
cash payments journal
sales journal
purchases journal
general journal.

-The concept of audit trail including the distinction between backward and forward audit trails An audit trail is a traceable path of a transaction through a data processing system from point of origin to final output, or backwards from from final output to point of origin. It is used to check the accuracy and validity of ledger postings.

Backward: 3->2->1 existence assertion
Forward: 1->2->3 competence assertion

-Internal control considerations
The third function of an AIS is to provide adequate internal controls to accomplish three basic objectives: 1.Ensure that the information is reliable.
2.Ensure that business activities are performed efficiently. 3.Safeguard organizational assets.
What are two important methods for accomplishing these objectives? 1Provide for adequate documentation of all business activities. 2Design the AIS for effective segregation of duties, including:

A-authorizing transactions
B-recording transactions
C-custody of assets

-The difference(s) between financial and managerial reports Managerial:
1. Internally focus
2. No mandatory rules
3. Financial and nonfinancial information; subjective information possible 4. Emphasis on the future
5. Internal evaluation and decisions based on very detailed information Financial:
1. Externally focus
2. Must follow externally imposed rules
3. Objective financial information
4. Historical orientation
5. Information about the firm as a whole

Chapters 4&17:
-Difference between a spreadsheet and a database
A database is a means of storing a lot of information.
A spreadsheet is a way of describing a table of numeric data, and having some of that data interacts.

-Disadvantages of flat file environments
Data Redundancy – Data entered multiple times; which increases the chance of recording errors and mistakes Data Storage - creates excessive storage costs of paper documents and/or magnetic form Data Updating - any changes or additions must be performed multiple times Currency of Information - potential problem of failing to update all affected files; Data inconsistency Reporting Flexibility

Data Sharing/Task-Data Dependency - user’s inability to obtain additional information as his or her needs change; Restricted ability to share data Data-Program Dependence

-Advantages of relational databases
Removes all three anomalies
Various items of interest (customers, inventory, sales) are stored in separate tables. ...
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