TUTORIAL 01
QUESTION ONE
What are the four levels of activity in the pyramid representing the business organization?
Distinguish between horizontal and vertical flows of information.
The four levels of activity in the pyramid representing the business organization are:
1. Operational Level: Involves day-to-day transactions and activities of the organization.
2. Knowledge Level: Concerned with analyzing and organizing information for managerial
decision-making.
3. Management Level: Focuses on planning, controlling, and decision-making to achieve
organizational goals.
4. Strategic Level: Involves long-term planning and decision-making at the highest level to align
with the organization's mission and objectives.
Horizontal flows of information refer to the exchange of information among entities at the same
hierarchical level within an organization. Vertical flows involve the movement of information up or
down the organizational hierarchy.
QUESTION TWO
Distinguish between natural and artificial systems.
Natural systems are those found in nature and operate without human intervention, such as
ecosystems or the human body.
WHILE
Artificial systems are created by humans, designed for specific purposes, and may not exist
naturally, such as computer systems or organizations.
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QUESTION THREE
What is the relationship among data, information, and an information system?
Data are raw facts and figures collected from the field.
while information is processed data that has context, relevance, and purpose.
An information system is a set of components that collect, process, store, and distribute
information to support decision-making and control in an organization.
DATA PROCESS INFORMATION
INFORMATION SYSTEM
QUESTION FOUR
Distinguish between AIS and MIS.
AIS (Accounting Information System) focuses specifically on accounting-related transactions
and processes.
WHILE
MIS (Management Information System) is broader, providing information for various
managerial activities beyond accounting, such as planning and decision-making.
QUESTION FIVE
What are the characteristics of good or useful information?
Characteristics of good information include
➢ accuracy,
➢ completeness,
➢ relevance,
➢ timeliness,
➢ consistency, and
➢ reliability.
QUESTION SIX
What are the fundamental objectives of all information systems?
The fundamental objectives of all information systems include data capture, processing, storage,
retrieval, and dissemination to support decision-making, control, analysis, and visualization.
QUESTION SEVEN
Distinguish between turnkey, backbone, and vendor-supported systems.
Turnkey System: A complete, ready-to-use system provided by a vendor.
Backbone System: The core system that supports major business processes.
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Vendor-Supported System: A system for which ongoing support and maintenance are provided
by an external vendor.
QUESTION EIGHT
Distinguish between financial and nonfinancial transactions. Give three examples of each.
Financial transactions involve the exchange of money,
while
nonfinancial transactions do not. Examples of financial transactions include sales and purchases,
while nonfinancial transactions include employee training or customer service interactions.
QUESTION NINE
Do you think transaction processing systems differ significantly between service and
manufacturing industries? Are they equally important to both sectors?
Transaction processing systems may differ between service and manufacturing industries due to
the nature of their operations. However, they are equally important in both sectors as they help in
recording and processing transactions essential for day-to-day business operations.
QUESTION TEN
Discuss the importance of accounting independence in accounting information systems. Give
an example of where this concept is important (use an example other than inventory control).
Accounting independence in accounting information systems refers to the separation of duties to
prevent fraud and errors. For example, in payroll processing, the person responsible for
approving timecards should be different from the person responsible for payroll disbursement.
QUESTION ELEVEN
If accountants are viewed as providers of information, then why are they consulted as system
users in the systems development process
Accountants, as providers of information, are consulted as system users in the systems
development process because they have a deep understanding of the information needs of the
organization. Their expertise helps ensure that the developed systems align with accounting
principles, regulatory requirements, and organizational goals.
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