Internal Information Flows and Information Requirements in Business

Accounting Information Systems (AIS) process both financial and nonfinancial transactions.

Management Information Systems (MIS) primarily process financial transactions.

The General AIS Model includes functions like data collection, processing, management, and information generation.

Financial transactions are the only data sources for Accounting Information Systems.

Useful information must be irrelevant to serve a purpose.

Functional Areas like Marketing and Personnel are common in organizational structures.

Accounting activities should be intertwined with the functional areas to ensure information reliability.

Accounting Information Systems (AIS) aim to support only day-to-day operations of a firm.

The goal of an information system is solely to support the decision-making function of management.

Transforming data into information involves classifying, merging, deleting, and presenting.

In a Centralized Data Processing system, all data processing is performed by small information processing units distributed to end users.

One of the potential advantages of Distributed Data Processing (DDP) is the improvement in cost control responsibility.

In a Manual Process Model, transaction processing, information processing, and accounting are mainly performed electronically without human intervention.

The Flat-File Model helps in reducing data redundancy problems by integrating separate files easily.

Accountants are not required to participate in systems development projects as their involvement is not necessary.

The REA model is an accounting framework that does not consider economic resources or events.

External Auditors primarily provide appraisal services for in-house Information Systems (IS).

The conceptual system, according to the text, is solely responsible for the physical system design.

IT Auditors evaluate IT systems as part of internal audit functions but not external audits.

Internal Auditors do not provide IS and IT appraisal services within their organizations.

Vertical flows of information in an organization include downward flows of aggregated transaction and operations data.

Each user group in an organization has identical information requirements.

The higher the level of an organization, the more detailed the information requirements.

A system is considered a subsystem when it is viewed as a component of a larger system.

System Interdependency implies that each part of the system is self-contained.

Information in business is not considered a vital resource.

System Decomposition involves combining subsystem parts to create a larger system.

An information system collects data and processes it into transactions.

Internal Information Flows are primarily used at the strategic level of an organization.

The focus of attention determines whether a part of a system is considered a subsystem or a system.