The correct answer is B) AIS (Accounting Information System).
An AIS (Accounting Information System) is an information system specifically designed to capture, store, process, summarize, and report financial and accounting information within an organization. It focuses on the accounting database and supports various accounting functions and processes. Here are the key points explaining why AIS is the correct answer:
1. Accounting Database: AIS is based on the accounting database of an organization. It captures and stores financial transactions and other relevant data necessary for accounting purposes.
2. Storage: AIS provides a structured framework for storing accounting data. It ensures the proper organization and maintenance of financial information, including records of assets, liabilities, revenues, expenses, and other financial transactions.
3. Processing: AIS processes the accounting data through various accounting modules and subsystems. It applies accounting principles, calculations, and rules to transform raw data into meaningful financial information.
4. Summarizing: AIS summarizes the processed data into useful reports and statements. It generates financial statements like the balance sheet, income statement, and cash flow statement, providing a consolidated view of the organization's financial position and performance.
5. Reporting: AIS facilitates the reporting of financial information to internal and external stakeholders. It generates financial reports that comply with accounting standards and regulations, allowing management, shareholders, investors, and regulatory bodies to make informed decisions.
Option A) System software refers to the underlying software components and programs that provide a platform for running application software and manage the operations of a computer system. While system software is essential for the functioning of the computer system, it is not directly related to the storage, processing, summarizing, and reporting of accounting information.
Option C) MIS (Management Information System) is a broader concept that encompasses various information systems, including AIS. While MIS provides information for effective management, AIS specifically focuses on accounting information and its related processes.
Option D) Application software refers to software programs designed to perform specific tasks or applications. While application software can contribute to the overall information system of an organization, it does not specifically focus on the accounting database and processes.
Therefore, the correct answer is B) AIS, as it is an information system based on the accounting database of an organization, supporting storage, processing, summarizing, and reporting of information about the organization's financial activities.