18 Questions
What is the primary purpose of the Expenditure Cycle in a business organization?
To acquire goods and services from suppliers
Which component of an Accounting Information System (AIS) is responsible for safeguarding information?
Controls
What is the outcome of the Revenue Cycle in a business organization?
Receipt of cash from customers
Which business process cycle involves the transformation of raw materials into finished goods?
Production Cycle
What is the primary function of an Accounting Information System (AIS)?
To transform data into useful information
What is the primary purpose of the Financing Cycle in a business organization?
To obtain cash from external sources
What is the primary purpose of organizing data in a context?
To make it more meaningful and useful
What is the term for facts collected, recorded, and stored in a system?
Data
What is the most useful format for data to be in?
Machine-readable format
What is the result of organizing data within a context, such as a sales invoice?
Information
What is the role of an Accounting Information System (AIS) in an organization?
To add value to an organization by providing meaningful information
What is the relationship between an Accounting Information System (AIS) and corporate strategy?
AIS affects and is affected by corporate strategy
Which of the following is a characteristic of transactional data?
It is used to create financial statements
What is the primary purpose of a business process in an organization?
To achieve a specific organizational goal
Which of the following is a component of an information system?
Business process
What is the primary purpose of transaction processing in an AIS?
To create financial statements
What is the exchange of information between internal and external parties in an AIS known as?
Give-get exchange
Which of the following is an example of an information need associated with the acquire inventory business process?
Inventory status reports
Test your knowledge of the fundamental business processes that involve transactions between a company and external parties. Identify the different cycles, including revenue, expenditure, production, and financing. Learn how each cycle represents a 'give-get' exchange.
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