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Related Flashcards
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Cards In This Set
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What is "economics"?
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Allocation of scare resources
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What are some examples of economic systems?
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1. communism2. capitalism3. socialism 4. dictatorship
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Why is accounting important?
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Because we have to prepare info that is used to decide how resources are allocated.
accounting facilitates the allocation of scare resources |
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Define a system
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A system is a set of two or more interrelated components. where the components interact to achieve a goal. smaller subsystems usually perform a specific supporting function.
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Components of an AIS
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People, policies and procedures, data, software, IT infrastructure, and internal controls/security measures
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Do you have to have software to have an AIS?
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NO... this could be done manually. but to do that you have to be very sufficient.
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Subcomponents of an AIS could be....
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The general ledger, the balance sheet, etc.
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Control>>> <<
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The more control you have the less efficient you are and the other way around. if you can raise both you will be very valuable!
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One function of an AIS
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1. collecting and storing data about Resources affected by the, Events of the organization and the Agents who participate.
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One function of an AIS
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2. transforming data into information useful for decision making *** important
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One function of an AIS
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3. providing adequate controls to safeguard data and other assets. do this with control.
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What is considered an agent?
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People, an organization, internal, and external
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Information usefulness is determined by...
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The information is understandable, complete, and accessible.
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What makes information understandable, complete, and accessible?
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It is relevance and reliability and also comparable and consistent
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Three items that go with relevance
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1. predictive value, 2. feedback value, 3. timeliness value.
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