CA51013: Introduction to AIS

Information is a business resource.

• True

• False

Transaction processing systems convert non-financial transactions into financial transactions.

• True

• False

The Management Reporting System provides the internal financial information needed to manage a

business.

• True

• False

Accounting plays an important role as a purveyor of financial information for the rest of the organization.

• True

• False

Accounting Information Systems are primarily designed to eliminate the need for managerial judgment in financial decision-making.

• True

• False

Information used for reporting purposes does not require validation if it originates from internal sources.

• True

• False

A monthly sales report shared between the marketing and finance departments is an example of internal information flow.

• True

• False

A training manual distributed to new hires is part of external documentation.

• True

• False

A system functions best when its components operate independently without coordination.

• True

• False

An information system consists of formal procedures by which data are collected, processed into information, and distributed to users.

• True

• False