Discussion Questions: (Just be honest, answer the questions below without going back from

the top. Place your answer below the given questions, there will be no wrong answers only
relevent or not. Answers based on opinions are highly appreciated.)

What is the difference of MIS & AIS?

 MIS has a wider scope than AIS while some views AIS as a subsytem of MIS.
 AIS Provide information on both internal and external user while MIS focused in providing
information to internal user only.
 AIS uses financial data, but MIS uses non-financial data besides the financial data.
 Other difference is AIS and MIS tend to provide variety of information to the organization through
different transactions.
 MIS has a wider scope compare to AIS
Hi
What is the similarity of MIS & AIS?

 Both systems are composed of subsystems that provides information in each of them.
 The main goal of both systems is to provide useful information to enhance decision making and
enhance the effecitivess and efficiency in doing work.
 Both are computer-based systems

What is the difference of Data & Information?

 Data is from which information can be ascertained. Without this datas there can be no information.
Before datas can be meaningful it needs to be processed,interpreted,organized and structured to
make information.Hence, data is meaningless if not processed as information because humans can
only understand and perceive information not the vice versa.

What is the difference of Accountant & Auditors?

 Accountants are involved in preparing financial statements and report at the end of each reporting
period while Auditors are responsible for providing assurance engagements through evaluating
whether financial statements and report prepared have comply with the existing standards and
relevant laws and regulations.

What is the effect of AIS in the fields of accounting?

 The possible effect of AIS in the fields in accounting is that AIS will provide more efficient and more
reliable accounting information. AIS will also provide easement in terms of tracking transactions. AIS
possible effect will include more valuable accounting information for informed judgements,accurate
datas and effective data collection.Hence, AIS could furnish helful and useful role in the fields of
accounting.
What is ethics & how does it affects professionals, (not just accountants)?

 Ethics is a fundamental requirement in any profession, without this ethical and moral conduct
everything will be on chaos. Good ethics promote integrity which means to continue doing right
things even if not watched.Maintaining ethical conducts in the exercise of profession is a must for
the prosperity of organization and ones personality. Ethics helps us make informed judgemement
when we are faced with ethical dillemas and prevent in doing morally wrong practices. Thus, having
good ethics affects professionals in reminding them that good conduct is a good business and not to
perform any unethical doings.

What is the value of information & how does it affects the level of obtaining information?

 The value of information is the difference between the cost and the benefit of the information. In
obtaining information you must first evaluate whether the cost of obtaining such information would
yield to a useful information. Value of information helps to determine whether the cost of o the
information would provide beneficial or relevant information. It teaches us that the cost of obtaining
such information shall not exceed to the benefits that can be derived from it.

What is the difference between Accounting Transactions & nonaccounting transactions?

 Accounting Transaction is an event that has an impact on entity's financial statements and has a
transfer of funds.

What is the difference of financial accounting & cost accounting?

 Cost Accounting is concerned in providing information to internal users. Cost accounting is designed
to help managers in planning and making judgement for the organizations. Reports under cost
accounting are not constrained under GAAP. On the other hand, financial accounting is concerned in
providing financial information to external users and unlike to cost accouting it's reports are
constrained in GAAP.

Discuss the stages or steps to be done in processing data.

Chapter 1 true or False.

1.In AIS, there are 7 standard ethical conducts. True

2.Accounting has the purpose of evaluating the information products of an AIS or various operational
aspects of the AIS itself. False

3.Internal Revenue Service consists of devising specifications for an AIS that best fit a firm’s current and
expected circumstances. False
4.Tax accounting has the purpose of developing information that reflects the tax obligations of an entity
and of aiding the making of decisions that have tax implications. True

5.Managerial accounting is the same as Financial accounting for it also follows GAAP. Only the users are
different. False

6.The information economics approach tells us that additional information should be gathered for use in
making decision as long as the value of the next piece of information exceeds the cost of obtaining it.
True

7.Formal information systems exist in firms to satisfy informational needs not met by the system itself.
Examples are information obtianed via internet or through periodicals. False

8.Accounting information system is a computer based information system that aids managers in making
ad hoc decisions that involve significant uncertainty. False

9.AIS relates to Finance while MIS has a wider scope of coverage. True

10.Information generation function has 2 basic aimes, namely: to secure firm’s assets and to ensure the
accuracy and completeness of the captured data. False

11.Data Collection is normaly performed under input stage. True

12.Information processing consists of processing accounting and non accounting transactions through
key accounting records by means of procedures. False

13.There are normally 2 types of users of AIS, namely Internal Users and External Users, the
shareholders relates to the later. False

14.All subsystems form system, but not all systems form subsystems. False

15.Management Information System is a unified structure within an entiry, such as business firms that
employes physical resources and other componets to transfer economic data into accounting
information with the purpose of satisfying the information needs of a variety of users. False

Identification
Maintaining 1.It involves adjusting stored data to reflect newly occuring events, operations, or
decisions.

Retrieving 2.It consists of accessing and extracting data, either for furtherprocessing or for reporting to
users.

Storing 3.It involves placing data in repositories called files or data bases.
Procedures 4.Known as particular sequences of steps performed within one or more of an AIS’s
functions.

Expert System 5.It is a knowledge-based information system that fully supports the making of decisions

Executive Information System 6.Under DSS, it provides managers with information that is tailored to
thier needs and interests.

Ethics 7.It refers to a set of moral principles or values.

Auditing 8.It has the purpose of evaluating the information products of an AIS or various operational
aspects of the AIS itself.

System Developers 9.It concists of devising specifications for an AIS that best fit a firm’s current &
expected circumstances.

Managerial Accounting 10.It has the purpose of providing financial information to the internal user of a
firm.

Tax Accounting 11.It has the purpose of developing information that reflects the tax obligations of an
entity and of aiding the making of decisions that have tax implecations.

Financial Accounting 12.it is the field of accounting that is mainly concerned with generating financially
orientated historical information.

Information Economics 13.It tells us that additional information should be gathered for use in making a
decision as long as the value of the next piece of information exceeds the cost of obtaining it.

Value of information 14. It is known as the difference between the benefits and costs. Value of
information

Informal Information System 15.It exist in firms to satisfy information needs not met by formal
information systems.

Decision Support System 16.It is a computer-based information system that aids managers in making ad
hoc decisions that involve significant uncertainty.

Management Information System 17.It serves the managers of the firm with their information needs. It
is as important to a firm’s well being as the AIS.

Information Generation 18.This function includes such steps as interpreting, reporting, and
communicating information.

Data Management Function 19.It consists of three steps: storing, maintaining, & retrieving.

Data Collection Function 20.It involves steps such as capturing the transaction data, recovering the data
onto forms, and validating and editing the data to ensure their accuracy and completeness.
Transaction Processing 21.It consists of processing accounting and nonaccounting transactions through
key accounting nrecords by means of procedures.

Accounting Transactions 22.It includes events or transactions that represent exchanges having economic
value.

Accounting Information System 23.It is a unified structure within an entity, such as a business firm, that
employs physical resources and other components to transform economic data into accounting
information, with the purpose of satisfying the information needs of a variety of users.

System 24.It is a unified group of ineracting parts that function together to achieve its purpose.

Information 25.It is the intelligence that is meaningful and useful to persons for whom it is needed.