Final answer:
AIS functions primarily to collect financial data, transform this data into financial information, and aid in decision-making. It encompasses managing economic accounts, understanding the impacts of business cycles, and considering inflation's effects.
Step-by-step explanation:
The three basic functions of Accounting Information Systems (AIS) can be broadly described as:
- Collecting and storing financial data.
- Transforming that data into financial information.
- Using that information to make decisions.
AIS serves to collect and record the financial affairs of the business, which is essential for internal and external reporting. Then, the system processes this data to generate reports that provide insight into the financial health of the business. Lastly, business owners and managers use these insights to make strategic decisions that affect the day-to-day and long-term operations of the business. Examples inclusive within these functions are economic accounts management, assessment of the business cycle's impact on financials, and evaluating inflation's influence through indexes such as the Consumer Price Index.