key term - Accounting information system

Definition

An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve, and report its financial data. It combines traditional accounting practices with modern information technology resources.

5 Must Know Facts For Your Next Test

1. AIS supports decision-making by providing timely and accurate financial information.
2. Components of AIS include people, procedures and instructions, data, software, IT infrastructure, and internal controls.
3. Key functions of an AIS are data collection and processing, financial reporting, and safeguarding assets.
4. AIS can be customized to fit the specific needs of different types of businesses or industries.
5. Professionals with expertise in both accounting and information systems have career opportunities in roles like systems auditor, financial analyst, and IT consultant.

Review Questions

Related terms

General Ledger:

A complete record of all the financial transactions of a company.

Enterprise Resource Planning (ERP):

Integrated management software that combines all aspects of a business into one comprehensive system.

Internal Controls:

Processes designed to ensure the integrity of financial and accounting information.