MN2545- Busin. Inform. Syst. for Account. & Fin.

1. What is information technology? Information technology- The computer & telecommunications equipment used to capture, store & distribute data 2. What is an information system? Information system- Collection of computer hardware & software that can provide decision-making, control or other similar information based on underlying data 3. What is the difference between information and data? Information consists of processed data, the processing directed at increasing its usefulness. Information is contained in descriptions. Whereas data refers to symbols that represent the properties of objects and events. Data can be considered as factual or statistical items. 4. What is hardware? Hardware- Refers to physical technology equipment such as computers, printers, projectors, etc 5. What are the different kinds of hardware? Input devices- Allow users to input or capture data Output devices- Provides data/information in a format understandable to humans Storage devices- Allows data to be retained when power is switched off Processors- They perform calculations & execute tasks Communications devices- Allows computers and computer users to communicate with each other across networks 6. What are the different kinds of software? Operating system software- Performs a computer’s basic functions, such as: application management, input/output management, device management, memory management, processor management & hardware management Application software- Describes a computer program that is designed to perform a specific purpose. It is designed with the end-user in mind and provides a user-friendly interface which can be lacking in some operating systems software. It communicates with the underlying operating system software to perform common tasks 7. Give one effect the advent of the internet had on business. Allowed traditional businesses to trade online & has provided new business models 8. Give another effect the advent of the internet had on business. Generated a more competitive environment, where information is quickly available to consumers 9. What is a network? Network- A collection of computers & other equipment connected to each other either wired or wirelessly. Networks allow computing resources to be shared 10. What is local area network? Local area network- Network that is usually restricted on a single building or buildings in close proximity to each other 11. What is wide area network? Wide area network- Network that covers a much wider geographical area, across several sites or even countries

1. Define the term ‘information system’. Information system- Collection of computer hardware & software that can provide decision-making, control or other similar information based on underlying data, as well as capture & process organisational data 2. Distinguish between the different types of accounting information. Financial accounting- Provides information to external users, typically in the form of summarised financial reports such as the income statement and statement of financial position. The information is based on historical data; a highly regulated branch of accounting. Management accounting- Concerned with the provision of information to managers to help them make business decisions; management accounting aims to provide more detailed and timely information to internal users of accounting information. 3. How has information systems changed the role of accountants? In smaller businesses there is reduced fee income for practising accountants & they have to do more analysis In larger businesses they have more analytical roles & there are more standardised accounting processes 4. Give one typical user of accounting information. Managers- Require accounting information to assist them in decision-making 5. Give another typical user of accounting information. Investors (shareholders)- Require accounting information on the value of the investment they have made 6. Give a third typical user of accounting information. Employees- Require accounting information on the ability of an organisation to meet their wage/salary expectations 7. Give a fourth typical user of accounting information. Suppliers- Require accounting information to allow them to assess the likelihood of being repaid 8. Give a fifth typical user of accounting information. Customers- Require accounting information to assess the ability of an organisation to continue supplying products/services 9. Give a sixth typical user of accounting information. Government & regulatory agencies- Require accounting information to help manage the economy, collect taxes, etc 10. Give one feature of enterprise systems. It is a standard software package, offering a level of customisation to enable configuration for most business types 11. Give another feature of enterprise systems. It offers a high level of functionality following a process-oriented view of enterprises 12. Give a third feature of enterprise systems. It provides a standardised graphical user interface across all application areas & modules, thereby allowing the user to easily work & learn across modules 13. Give one way how developments in accounting information systems has affected the roles of accountants in business. Less of the mundane bookkeeping/reporting type of work is done, as software can manage a lot of this work 14. Give another way how developments in accounting information systems has affected the roles of accountants in business. Accountants have taken on a business advisor role