Study Guide for AIS

Technology and Axis What is Axis (Accounting Information Systems)? It is the application of information technology to accounting systems. It’s a collection of data and processing procedures that creates needed information for its users. What is IT (Information Technology)? It is the hardware and software used in computerized information systems. AXIS can be viewed as a set of 5 interacting components: 1) hardware, 2) software, 3) data, 4) people, and 5) procedures that work together to accomplish processing tasks. Hardware must work with the other components to perform data processing tasks.

Without software, the hardware would stand idle. Without data, the H. W. & S. W. Would be useless. Without people, the system probably would not be in use for long. Without procedures, accounting would not be gathered & distributed properly Six reason’s IT is important to accountants: – I. T. Must be compatible with and support other components of AS. – Accounting professionals need to know about H. W. & S. W. To help clients with advice on purchases. – Auditors must evaluate computerized systems. – Accounts have to evaluate the efficiency and effectiveness of existing systems. It affects the way they work now & in the future. It is vital to passing most accounting certification examinations. INPUT, PROCESSING, & OUTPUT DEVICES Peripheral equipment surrounds the computer and helps process data. Input: Mice & Keyboard/ Output: Printer & Monitor/ Secondary Storage: Hard Disks Input- Processing-output Cycle is a three phase operation in which accounting transactions are processed. Input Devices Source Documents are the starting point for collecting accounting data. Source Documents are important to Axis because 1) they are human readable and 2) they an be completed by the user and 3) they provide evidence of a transaction.

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Examples: time cards, survey forms, purchase invoices, etc. Data transcription is labor intensive, costly, and inefficient that is the reason most Axis try to avoid it. POS Device (Point of Sale Device): It is an input device such as a barricade reader that enables a user to input data directly into a computer from a checkout stand in a supermarket or merchandise store and avoid manual keystrokes. Bar Code Readers is a device that interprets the familiar barricade stripes printed on researched packages, shipping, labels, and similar documents, and inputs the data into a computer. PUC – Universal Product Code commonly printed on supermarket and variety store items). Magnetic Ink Character Recognition(Mall) the technology used primarily by banks to encode magnetically readable symbols at the bottom of checks or similar financial documents. They are both human and machine readable. Refers to magnetically encoded paper. Optical character recognition an older technique that enables computer input devices to interpret machine-printed. Uses optical, to interpret data found on source comments. 1 .

Mark-sense Media use simple rectangles or ovals as characters that is blackened with a pencil. 2. Turnaround documents are documents prepared initially by the company, sent to individuals, then returned to the organization for further processing. Personal data assistant devices(PDA): a computerized device that includes such functions as calculator, address book, memo storage, daily planner, and perhaps even provides wireless internet access. Biometric Scanners authenticates users based on who they are. Behavioral systems recognize signatures, voices, or keystroke dynamics.

Physiological systems recognized fingerprints, irises, retinas, faces, and even ears. Central Processing Unit (CUP]): the component of a computer that performs that processing tasks of the system. Minicomputer a multi-user computer with less processing power than a mainframe but typically more power than a personal, or microcomputer. Mainframe computer a large multi-user computer that enables large companies to centralize processing power in a single device. Supercomputer a computer that is faster and more powerful than a mainframe, and capable of performing trillions of operations per second.

Computer Tablet: a new category of portable computer systems for example, ‘pads. Primary Memory: the internal random access memory or RAM that a computer uses to temporarily store computer programs and immediate data. Microprocessor: the portion of the CPU that performs the arithmetic and logic tasks of a computer, and also interprets and executes computer instructions. Computers, Processor Speed, and Axis computer processing speeds are typically measured in megahertz or MIPS (millions of instructions per second) 1/0 Bound: refers to the three phases of computer processing.

Most Accounting transactions are processed in a three phase OUTPUT DEVICES Hard Copy output: is a printed output and is the opposite of soft-copy output such as found on computer screens. Soft copy output: computer output on video screens, billboards, and similar devices; the opposite of hard copy (printed ) output. Dot Matrix Printers: are impact printers that employ tiny wires in a print head to strike an inked ribbon and create tiny dots on a print page. Used at cash registers and inexpensive Ink-Jet Printers: create characters by distributing tiny bubbles or dots of ink onto ages.

Laser Printers: the costs of laser printers are higher than dot-matrix or ink-Jet printers, but print quality is usually superior and output speeds are much faster. Picture Elements (Pixel): are tiny, discrete dots of color that are arranged in a matrix in digital computer screens to create familiar letter in word documents or pictures in graphics applications. Multimedia: combines video, text, graphics, animation, and sound to produce multidimensional output. Secondary Storage DEVICES Primary memory is volatile memory, meaning memory that loses its contents when electrical power is lost.

Secondary Storage computer equipment that stores data permanently (hard disk, CD-ROOMS, and USB drives) Computer Record collections of information about one file entry-for example one employee on a payroll file Magnetic Hard Disk: consists of one or more spinning platters, each surface of which has an iron oxide coating that can be magnetized to record information. Large Storage Capacity/Fast Data transfer rates/ability to directly access any specific record without sequential searching Redundant arrays of Inexpensive Disks (RAIDS): are commonly used for archiving

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