a. Basic concepts of Accounting Information System.

b. Definition of Database, Information, DBMS.

c. The difference of Data from Information.
d. Types of database structures.
e. Features of database.
f. Characteristics of database.
g. How to organize Data/designing database
h. Excel screen shot.
i. Data Base in excel environment.
j. Built in functions of Excel.
Accounting Information System

Accounting Information Systems (AIS) collect, record, store, and process data to produce information for decision
makers.Accounting information systems are a set of interrelated components, that interact, to achieve a
goal. Most accounting information systems are composed of smaller subsystems and vice-versa, every
organization has goals. Accounting Information Systems can use advanced technology, be a simple paper-and-
pencil system or be something in between. Technology is simply a tool to create, maintain, or improve a system.
An accounting information systems topics impact corporate strategy and culture.

https://www.accountinginformationsystems.org/

An accounting information system (AIS) involves the collection, storage, and processing of financial and
accounting data used by internal users to report information to investors, creditors, and tax authorities. It is
generally a computer-based method for tracking accounting activity in conjunction with information technology
resources. An AIS combines traditional accounting practices, such as the use of Generally Accepted Accounting
Principles (GAAP), with modern information technology resources.
https://www.investopedia.com/terms/a/accounting-information-system-ais.asp

Accounting Information Systems Characteristics

Characteristics that make information useful:
Relevance
Reliability
Completeness
Timeliness
Understandability
Verifiability
Accessibility
Benefits of Accounting Information Systems

Interdepartmental Interfacing

An accounting information system strives to interface across multiple departments. Within the system, the sales depar

Internal Controls

An integral part of accounting information systems relates to internal controls. Policies and procedures can be placed

Database Management System

A database management system (DBMS) is a computer program designed to manage a large amount of
structured data, and run operations on the desired data requested by the users. The best example of DBMS is
Banking. All the transactions that take place are based on a defined software program which keeps track of all the
data.

The core of any database management system is the data itself. Another important aspect regarding DBMS is the
difference between data and information.
Difference Between Data and Information
What is Data?
Data is a collection of raw, unorganised facts and details like text, observations, figures, symbols and descriptions
of things etc. In other words, data does not carry any specific purpose and has no significance by itself. Moreover,
data is measured in terms of bits and bytes – which are basic units of information in the context of computer
storage and processing.
What is Information?
Information is processed, organised and structured data. It provides context for data and enables decision making.
For example, a single customer’s sale at a restaurant is data – this becomes information when the business is able to
identify the most popular or least popular dish.
Database Components
A database is comprised of the following primary parts.
1. Schema
A database contains at least one composition, which is essentially a gathering of at least one table of information.
2. Table

Each table contains various columns just like in a spreadsheet. A table can have as meager as two columns and
upwards of one hundred or more columns, depending upon the kind of information being put in the table.

3. Column
Each column contains one of a few sorts of information, such as name, address, phone number, etc.
4. Row
Data in a table is recorded in rows. There are hundreds or thousands of rows in a table having any particular
information.

What is DBMS and Its Types

A collection of information which is managed such that it can be updated and easily accessed is called a database.
A software package which can be used to manipulate, validate and retrieve this database is called a Database
Management System.
For example, Airlines use this software package to book tickets and confirm reservations which are then managed
to keep a track of the schedule.
1. Distributed Database
It is a database that comprises of at least two documents situated in various destinations either on a similar system
or on unique systems. Parts of the database are put away in various physical places and handling is disseminated
among different database hubs.

Distributed databases are physically stored across multiple locations and logically interconnected with each other
and they are usually signifying a solitary logical database.
Distributed databases can be homogenous or heterogeneous. Generally, distributed databases may include the
following features:

Hardware independent
Location independent
Operating system independent
Network independent
Transaction transparency
Distributed query processing
Distributed transaction management

Examples of distributed database:

Apache Cassandra
Apache HBase
Apache Ignite
Couchbase Server
Amazon SimpleDB
FoundationDB
Clusterpoint

Replicated Data

It is a type of distributed database, which is used to create examples of data in various parts of the database. It can
be divided into these two categories.

1. Read only data

2. Writable data

Advantages of Distributed Database:

Administrators can face lower communication costs for distributed database frameworks if the information is found
near where it is utilized the most, whereas, it is not possible in centralized database.

It is easy to update and growth.

Increases consistency and ease of use
Ensures better performance
Loss of database from one place may not cause loss of all data.
Effective for load balancing and reduces latency.
Distributed database has the capability of fault tolerance

Disadvantages of Distributed Database:

Enforcement of integrity may require more network resources.

More complexity as its architecture requires better design, administration and troubleshooting.
Sometimes, problems faced during accessing from the master database.
Security is another concern in distributed database
Lack of standard and experience

2. Centralized Database
A centralized database framework is a framework that keeps the information in one single database at one place.

Advantages of Centralized Database:

Centralized database storage improves data safeguarding.

Centralized database provides physical security as locally stored data signifies an ongoing physical security hazard.
Maintenance of centralized storage is less costly than multiple storage spaces.
Easy to share ideas across the market analysts.
It reduces conflicts due to centralization
Centralized database reduces conflicts amongst organizations and they can focus on their vision and promptly act.
In centralized database, the data redundancy is negligible.

Disadvantages of Centralized Database:

Centralized database can be unresponsive to work under a heavy workload.

Administrators can face high communication costs if the information is not found where it is utilized the most.

In centralized database, information is stored within a single database so the chance of data loss may increase.
No proper database recovery measures

3. Personal Database
Information is gathered and stored on PCs, which is in small quantity and can easily manageable.

This information is commonly utilized by the same department of an association and can easily be accessed by a
small number of people.

Generally, a personal database system can support one application at a time, involve a single computer, a database
having few tables.

Advantages of Personal Database:

Improve data sharing and security

Better data integration and fast data access
Fast end-users productivity and improved decision making

Disadvantages of Personal Database:

Increased cost due to the requirement of licensing and proper training of database users, and administers to utilize
and manage the new traits.
Personal database can be unresponsive to work under a heavy workload.

4. Relational Database:
A relational database is described by a set of tables from where data can be accessed.

Relational database can store a large amount of information in a set of tables, which are linked to each other.

Each table is composed of information in rows & columns in which each column represents a particular type of
information like name, address, each row contains unique information and each field in a table has its own data
type.

Advantages of Relational Database:

Relational database is used to store the financial record of any company

It keeps records of customers’ consignments and their orders.
Relational database ensures data integrity and better performance.
It provides better data security and allows multiple users.
A vast amount of data can be stored in relational database, which can easily extendable and modifiable.
Several clients can access the same database.

Disadvantages of Relational Database:

High setup and maintenance cost

Sophisticated networking and hardware setups are required for relational databases.
Few relational databases have bound on field lengths.

5. Operational Database:
An operational database is used to store and manage a huge amount of data in real-time. Data regarding operations
(marketing, services provided to customers & relations with them) of any project can be stored inside an
operational database.

A national climate administration consistently gathers information from computerized climate stations that produce
convenient climate gauges and as an authentic record for scientists.

Similarly, a company permits its sales reps in the field to update sales information in order to boost revenue.
Microsoft, Oracle, Amazon Web Services, SAP and IBM are the important players in Operational Database
Management System (ODBMS)

Advantages of Operational Database:

It ensures real-time operations as data can be added and modified in real-time.
Operational database provides up-to-date information.
It supplies data for real-time computation and analyzing processes.
It is helpful to run the day to day operation of the business.

Disadvantages of Operational Database:

Real-time analysis requires special training sessions for database users which impose more cost on companies.
Queries against operational data are usually narrow in scope i.e. speed critical.

6. Hierarchical Database:
In hierarchical database model, data is organized in a tree structure that links a number of different elements to
one parent record.

Each record type has only one parent. Top element of tree is called parent while its branches are called children. It
is useful for certain types of data storage and most popular in the time of mainframe computers.

An entity type is corresponding to a table and entity types are related to each other with one-to-many association.

Advantages of Hierarchical Database:

Hierarchical databases are easy to comprehend

In hierarchical structure clear chain of command
In hierarchical database, navigating among the records is fast enough as the parent and child relationships are
implemented with pointers from one data record to another record.

Disadvantages of Hierarchical Database:

Hierarchical structures have no tendency to adopt new changes rapidly.

Communication barriers
Cannot change the database to ensemble current business’ requirements

7. Cloud Database:
Cloud database is a kind of database administration that is deployed and delivered through a cloud platform like
Platform-as-a-Service (PaaS) that permits the organizations and their applications to store and mange information
from the cloud.

In present era, it got popularity due to several benefits like acquiring more storage capacity, high bandwidth,
scalability and availability as per the payment ability of the user.

A cloud database regularly functions as a standard database arrangement that usually executed through the
installation of database programming over a registering/framework cloud.
In addition, a cloud database is likewise conveyed as an administration, where the merchant specifically deals with
the backend procedures of database installation and deployment.

Advantages of Cloud Database:

Cloud database provides great flexibility to run database workload either traditionally or as a service.
Helpful for disaster recovery
Companies can reduce the annual operating costs by utilizing cloud storage
Easy to access data via internet

Disadvantages of Cloud Database:

Data protection is a great challenge in cloud database.

Difficult to access in case of absence of internet connection
More conscious during drag & drop action to move a document into the cloud storage folder

Eg. Google Cloud, Microsoft Azure

8. Object Oriented Database

It is a group of object-oriented programming and relational database, which is organized around object rather than
actions and logic.

Some examples of object-oriented database engines are Smalltalk, db4o and Cache. Information is described in the
form of objects in object-oriented database. Alike objects are categorized to classes and sub-classes and
relationship between two objects is maintained by utilizing the notion of opposite reference.

Advantages of Object Oriented Database:

Permits the integration of databases, operating system, word processors spreadsheets, and other applications
Ensures the referential sharing of products and applications
Easily creates a new object from an existing object
Object Oriented Database Management System permits to create persistent object to solve the issue of concurrency
and recovery.

Disadvantages of Object Oriented Database:

Storage of huge ADTs and structured objects

Query processing and optimization is a complex task
It is much more complex that Relational Database, so professional programmers required instead of inexperienced
end users.
User cannot permit access rights on individual objects and classes
Absence of standard query language to Object Oriented Database as Structured Query Language to Relational
Database Management System

9. NoSQL Database:
NoSQL database is used to efficiently manage and analyze a large set of distributed data that might be stored at
several virtual servers. Types of NoSQL database are:

Document Stores
Key-value data Stores
Wide Column Stores
Graph Stores

Many NoSQL data stores are available now, some of which are, MongoDB, CouchDB, GemFire, Casandra, Hbase,
Mnesia, Memcached, and Neo4j

Advantages of NoSQL Database:

Easy to use and flexible due to Object-oriented programming

It has geographically distributed scale-out architecture as a substitute of monolithic architecture
Frequent code pushes and quick schema iteration
It offers better performance and high global availability
It also offers flexible data modeling
Massive volumes are easily handled by NoSQL databases

Disadvantages of NoSQL Database:

Advance expertise is required for its installation and maintenance.

Most common business intelligence gadgets do not provide connectivity to NoSQL Databases

Components of Database Management Software

There four main components on which the working of a DBMS depends. This includes:
Data: The main component is the data. The entire database is set based on the data and the information processed
based on it. This data acts as a bridge between the software and hardware components of DBMS. This can further
be divided into three varieties:
User Data – The actual data based on which the work is done
Metadata – This is the data of the data, i.e., managing the data required to enter the information
Application MetaData – This is the structure and format of the queries
To simplify it, in a table, the information given in each table is the User Data, the number of tables, rows and
columns is the MetaData the structure we choose is the Application MetaData.
Hardware: These are the general hardware devices which help us save and enter the data like hard disks, magnetic
tapes, etc.
Software: The software acts as a medium of communication between the user and the database. Based on the
user’s requirement, the database can be modified and updated. To perform operations on the data, query languages
like SQL are used.
Users: No function can be performed without the Users. Thus, they form the fourth most important component of
DBMS. The information entered into a database is used by the User or the administrator to perform their business
operations and responsibilities.

Benefits of Using Database Management System

Major Organisations and Banking firms choose to work using the Database Management System. It is because this
system program helps the user and the administrator easily manage the data and information on the database.

Given below are a few advantages of using a Database Management System:

Securing the data is easy. The administrator can restrict the usage of the database to a few people only. Thus,
access to the database is restricted only to the administering team of an Organisation or Business which can keep
the data safe
A single file can manage the entire database which is why duplicity and redundancy cannot happen. This makes the
data more consistent and easy to update
Since tables can be created in DBMS, interrelating the data and elements with each other is convenient
The backup and recovery of data is managed by the software, which ensures that the database is secure at all times
It allows multi-users to operate the database at a single time, making it more efficient
Important Terms related to Database Management System
A few other important terms related to DBMS have been discussed in brief below. To understand this concept
better, one must be aware of the following terms.
Data Manipulation Languages (DML) – This is a programming language used to insert or modify the data
present in a database These are of two types: SQL and DDL.
Structured Query Language (SQL) – A programming language generally used for the relational database
management system, which comprises tables.
Data Definition Language (DDL) – It is a syntax which helps in modifying data present in the form of tables or
indexes
Primary Key – Each file has a unique key. Using the Primary Key, a specific file can be identified
Foreign Key – The relation between a field in one table and component identified by a primary key can be detected
using a Foreign Key

Features of Database Management System (DBMS)

Features of Database Management System (DBMS): The scope of Database management system is not hidden
from any organization. Everyone knows that how important database management system is if they want to manage
their precious data securely. So it has become necessary for every organization to opt for DBMS. Here we are
sharing few most important features of database management system.

Features of Database Management System (DBMS)

Minimum Duplication and Redundancy

Because there are many users who use the database so chances of data duplicity are very high. As in database manage

Saves Storage Space and Cost

All the Database management systems have a lot of data to save. But proper integration of data saves much more
space in DBMS. Companies are paying so much amount of money to store data. If they have managed data to
storing then it will save their cost of storing data and data entry.

Anyone Can Work on It

Users who are not having any technical skills can work on database management system. The query language
provided by DBMS is so easy to understand. If you want to update, insert, delete and search any record then it is
very easy with the help of queries provided by DBMS. Any non programming user can do this without any
help of skilled programmer.

Large Database Maintenance

Large databases of big companies can be maintained only by database management system. These databases
require lots of security and other feature like backup and recovery. All these features are contained in DBMS. It
can maintain a database with lots of data and information.

Provides High Level of Security

Security is a very big concern for all the organizations who are handling a large amount of data. DBMS doesn’t give t

Permanent Storage of Data

DBMS stores all the data files permanently and there is no chance of any loss of data. If somehow the data get lost
then there is a backup and recovery method too that can save organization’s data files. So no need to worry about
data loss in DBMS.

Multi-user Access

In DBMS, multiple users can access all kind data and information stored in one data store. There are certain
limits that users can access or view particular data according to the rights given to them. This increases the security
and privacy of data for users because they will have their own interface to access data.
 Database in Excel
Excel is a combination of rows and columns, and these rows and columns store our data, which in other terms are
named records. As Excel is the most common tool, we reserve the data in Excel, making it a database. Therefore,
when we put data in Excel in some form of tables in rows and columns and give the table a name, that is a
database in Excel. We can also import data from other sources in Excel, given the data format is proper with the
Excel format.
For example, you may create a company’s sales report of different regions on a database in Excel for easy access
and complete control over data management while working with the program.

Creating an Excel Database

Having the data in Excel will make life easier for you because Excel is a powerful tool where we can play with the
data. If you maintain the data in other sources, you may not correctly get all the formulas, dates, and time format. I
hope you have experienced this in your daily work. Having the data in the right database platform is very
important. Having the data in Excel has its pros and cons. However, if you are a regular user of Excel, it is much
easier to work with Excel. This article will show you how to create a database in Excel.

How to Create a Database in Excel?

We do not see any of the schools are colleges teaching us to Excel as the software in our academics. Whatever
business models, we learn a theory until joining the corporate company.
The biggest problem with this theoretical knowledge is it does not support real-time life examples. But, nothing to
worry about; we will guide you through the process of creating a database in Excel.
We need to design the Excel worksheet carefully to have accurate data in the database format.
Follow the below steps to create a database in Excel.
1. We must first ensure all the required columns and name each heading properly.

2. Once the headers of the data table are clear, we can easily start entering the data just below the respective
column headings.

In database terminology, rows are called “Records,“ and columns are called “Fields.“
3. We cannot leave a single row empty when entering the data. For example, we have entered the headings in
the first row, and if we start entering the data from the third row by leaving the 2nd row empty, we are
gone.
Not only the first or second row, but we also cannot leave any row empty after entering certain data into the
database field.
4. As we said, each column is called “Fields” in the database. Similarly, we cannot have an empty field
between the data.
We need to enter the fields one after the other. Having a gap of even one column or field is strictly prohibited.

I am so stressed about not having an empty record or field because when the data needs to be exported to other
software or the web, as soon as the software sees the blank record or field, it assumes that it is the end of the data.
Therefore, it may not consider the full data.
5. We must fill in all the data carefully.

In the above image, I have data all the way from row 1 to row 5001.
6. The final thing we need to do is convert this data to an excel table. By selecting the data, press Ctrl + T.
7. Here, we need to make sure the “My table has a header” checkbox is ticked and the range is selected
properly.

8. Then, we must click on “OK” to complete the table creation. As a result, we may have a table like this
now.
9. We must now give a proper name to the table under the table “Design” tab.

10. Since we have created a table, automatically, it would expand whenever we enter the data after the last
column.
We have the database ready now. Follow the pros and cons below to have a good hand on your database.
Things to Remember While Creating a Database in Excel
Since we have all the data in Excel, it is very easy for your calculations and statistics.
Excel is the best tool for database analysis.
Easy to read and not complicated because of clear fields and records.
We can filter out the records by using auto filters.
If possible, sort the data according to date-wise.
As the data keeps growing, Excel will slow down considerably.
Email attachment size is limited.
We can Apply the Pivot table and give a detailed analysis of the database.

References:
https://www.accountinginformationsystems.org/
https://www.investopedia.com/terms/a/accounting-information-system-ais.asp
https://www.wallstreetmojo.com/database-in-excel/
https://byjus.com/biology/difference-between-data-and-information/
https://whatisdbms.com/features-of-database-management-system-dbms/
What Is a Database | Oracle
https://phoenixnap.com/kb/distributed-database
https://www.mongodb.com/cloud-database
AIS Definition

C,R,S,P data to produce

info for decision making

Generally a computer-based method for tracking accounting

activity

AIS Characteristics
RR C TUVA
AIS Benefits

Interdepartmental Interfacing
Sales Dept- upload sales budget ->1. used by intry mgmt
team to conduct inventory counts -> 2. Procurement ->
purchase 3. Payable Dept -> notify of the new invoice 4.
Cust Service-> aware of the sale

Internal Controls
Policies and procedure-> can be place w/in the system
(cust/supplier)

Data vs Information
-> the organization or structure for a database

Use to organize and analyze related data

Database

Collection of information which is managed such that it can

be updated and easily accessed

DBMS
Software package which can be used to manipulate, validate
and retrieve this database
Manage huge amount of data in real time
1. Columns and name each heading properly.

2. Enter the data just below the respective column headings.

3. Do not leave any row empty

4. Column is called “Fields” in the database. Similarly, we cannot have an empty field
between the data.

5. Fill in all the data carefully.

6. Final thing-> convert data to an excel table.

7. Make sure the “My table has a header” checkbox is ticked and the range is selected
properly.

8. Click on “OK” to complete the table creation.

9. Give a proper name to the table under the table “Design” tab.
Outlook->20MB
Gmail attachment size limit-> 50MB

Data Abstraction is a process of hiding unwanted or

irrelevant details from the end user. It provides a different
view and helps in achieving data independence which is
used to enhance the security of data.

The database systems consist of complicated data structures

and relations. For users to access the data easily, these
complications are kept hidden, and only the relevant part of
the database is made accessible to the users through data
abstraction.

Levels of abstraction for DBMS

Database systems include complex data-structures. In terms
of retrieval of data, reduce complexity in terms of usability
of users and in order to make the system efficient,
developers use levels of abstraction that hide irrelevant
details from the users. Levels of abstraction simplify
It is the highest level. In view level, there are different levels
of views and every view only defines a part of the entire
data. It also simplifies interaction with the user and it
provides many views or multiple views of the same
database.

View level can be used by all users (all levels' users). This
level is the least complex and easy to understand.

For example, a user can interact with a system using GUI

that is view level and can enter details at GUI or screen and
the user does not know how data is stored and what data is
stored, this detail is hidden from the user.

MIDTERM EXAM BONUS QUESTION

1. How many levels of Abstraction are there in a database?
1. Three
2. Two
3. Five
4. One
5. Four
Answer: (1) Three

Solution: There are three levels of abstraction: Physical Level, Logical Level and View
Level