Accounting Information System and Management Information System — Flashcards

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AIS is a system of collecting data from financial as well as non-financial transactions of an institution, converting data into information, and providing reports to management, stakeholders, and othe…

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AIS is useful because it helps in taking care of accounting and financial transactions, provides requisite reports and information, supports budgeting, expansion plans, and future planning, and helps …

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AIS is used by both profitable and non-profitable organizations because its reports are useful not only to the accounts department but also to purchase, sales, production, and human resource departmen…

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The basic function of AIS is to provide requisite reports and information. It turns transaction data into useful information for different users.

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The six purposes of AIS are Sales Order Processing, Inventory Control, Accounts Receivable, Accounts Payable, Payroll, and General Ledger.

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Sales Order Processing creates funds for business. It supports sales order processing, preparation of invoices, sales analysis such as product-wise, area-wise, and customer-wise analysis, and generate…

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Inventory Control manages inventory status such as minimum level, maximum level, re-order level, material yield, and material issued and received for production.

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Accounts Receivable controls sales made to customers and payment received from them. It also generates reports such as an overdue customers list.