Which of the following statements is correct with respect to Accounting Information System (AIS)?

Correct option is A

An Accounting Information System (AIS) is a subsystem of the broader Management Information System (MIS). MIS includes systems that support different managerial functions such as marketing, finance, production, and human resources. AIS specifically focuses on collecting, processing, and reporting financial information to support planning, control, and decision-making.
Since MIS covers a wide range of information beyond accounting, AIS is only one part of the overall structure. Therefore, the correct statement is (a) ‘Accounting Information System’ is a part of ‘Management Information System’.
Information Booster
1. MIS is an umbrella system comprising various subsystems, including AIS, HRIS, and Marketing IS.
2. AIS processes both financial and non-financial data relevant to accounting.
3. AIS enhances accuracy, reliability, and timeliness of financial information.
4. AIS improves internal control and supports decision-making through structured reporting.
5. MIS uses AIS data to support strategic, tactical, and operational managerial decisions.