What is a Computerised accounting system?
A computerised accounting system is an accounting information system that processes the financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements.
What are the components of Computerised accounting system?
1. The components of Computerised Accounting System are : (a) Data, Report, Ledger, Hardware, Software; (b) Data, People, Procedure, Hardware, Software; (c) People, Procedure, Ledger, Data, Chart of Accounts; (d) Data, Coding, Procedure, Rules, Output. 2.
What are the six components of AIS?
Understanding Accounting Information Systems (AIS) Accounting information systems generally consist of six primary components: people, procedures and instructions, data, software, information technology infrastructure, and internal controls.
What is the first stage of Computerised accounting system?
The first four steps in the accounting cycle are (1) identify and analyze transactions, (2) record transactions to a journal, (3) post journal information to a ledger, and (4) prepare an unadjusted trial balance. We begin by introducing the steps and their related documentation.
What are the advantages of computerized system?
Advantages of computerized information systems are:-
- Data standardization and accuracy.
- Improved analytical capabilities.
- Cost savings by increasing employee productivity, decreasing manpower etc.
- Ready availability of data and ready reproduction (printed copy) of the stored data.
What are the two types of accounting systems?
The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur.
What are 3 important functions does AIS perform in an organization?
The accounting information system serves three basic functions: to collect and process data, to provide information to decision-makers within the organization and to see that accounting personnel records information accurately and protects the data.
What is the purpose of an accounting system?
The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.
What is a computerised accounting system?
The computerised accounting system is an accounting data system that processes the financial transactions and transactions as per GAAP (Generally Accepted Accounting Principles) to produce reports as per user demands. Every accounting system, either computerised or manual, has two (2) aspects.
What is the role of computers technology in accounting?
Gone are the days when accountants used to record the accounting transactions using the ledger books and pen/pencil. Firstly, computers technology has registered its importance in the last 3 decades in every industry.
What are the two aspects of accounting system?
Every accounting system, either computerised or manual, has two (2) aspects. First, it has to work under a set of well-defined theories known as accounting principles. Another, that there is a user-defined structure for the maintenance of records and the creation of reports.
What is the operating environment of accounting system?
In a computerised accounting system, the structure of storage and processing of data is known as an operating environment that comprises of hardware as well as software in which the accounting system, works. The kind of accounting system used defines the operating environment.