Accounting Information System
Q1
Definition of 'Accounting Information System - AIS'
The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
Investopedia explains 'Accounting Information System - AIS'
Accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system: * People - the system users. * Procedure and Instructions - methods for retrieving and processing data. * Data - information pertinent to the organization's business practices. * Software - computer programs used to process data. * Information Technology Infrastructure - hardware used to operate the system. * Internal Controls - security measures to protect sensitive data.
Q2:
The Accounting Information Cycle
Record keeping or the data transformation process is called the accounting cycle, and there are nine steps to this: 1. Preparing transaction source documents. 2. Recording business transactions in a journal. 3. Posting business transactions from the journal to the general ledger and determining individual account balances. 4. Preparing a trial balance. 5. Recording adjusting entries in a journal. 6. Posting adjusting journal entries to the general ledger. 7. Preparing financial statements from adjusted trial balances. 8. Recording closing entries in a journal. 9. Preparing a post closing trial balance.
Q3:
Contextual Views?
Any system operates by interacting
Definition of 'Accounting Information System - AIS'
The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
Investopedia explains 'Accounting Information System - AIS'
Accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system: * People - the system users. * Procedure and Instructions - methods for retrieving and processing data. * Data - information pertinent to the organization's business practices. * Software - computer programs used to process data. * Information Technology Infrastructure - hardware used to operate the system. * Internal Controls - security measures to protect sensitive data.
Q2:
The Accounting Information Cycle
Record keeping or the data transformation process is called the accounting cycle, and there are nine steps to this: 1. Preparing transaction source documents. 2. Recording business transactions in a journal. 3. Posting business transactions from the journal to the general ledger and determining individual account balances. 4. Preparing a trial balance. 5. Recording adjusting entries in a journal. 6. Posting adjusting journal entries to the general ledger. 7. Preparing financial statements from adjusted trial balances. 8. Recording closing entries in a journal. 9. Preparing a post closing trial balance.
Q3:
Contextual Views?
Any system operates by interacting