case analysis
1. Describe the general accounting process.
The accounting cycle process includes the steps below:
a) Recording each transaction in the form of a journal entry.
b) Posting the amounts from the journal entries to individual balance sheet and income statement accounts in a general ledger.
c) Making adjusting journal entries to the accounts to correct errors and to reflect the financial statement impacts of items that occur because of usage or the passage of time.
d) Preparing the income statement for the period from amounts in the income statement accounts.
e) Closing the temporary income statement accounts to retained earnings.
f) Preparing the balance sheet from amounts in the balance sheet accounts.
g) Preparing the statement of cash flows from balance sheet amounts and from details of transactions affecting the cash account.
2. What are the implications of information technology for accounting?
Information technology enables the companies to develop and use computerized systems to track and record financial transactions. IT allows companies to create individual report quickly and easily for management decision making. Also, other computerized accounting systems advantages are: increased functionality, improved accuracy, faster processing, and better external reporting.
3. Define accounting information systems (AIS).
An accounting information system is a collection of data and processing procedures that creates needed information for its users.
4. What are the implications of information technology for accountants?
IT networks and computer systems have shortened the time needed by accountants to prepare and present financial information to management.
1. The chapter discussed many inputs to a company's sales process. What are the specific data items needed to add a new customer and record a sales order?
When a new customer placed a sales order, the specific data items needed to add are: the customer’s name, shipping address, billing
The accounting cycle process includes the steps below:
a) Recording each transaction in the form of a journal entry.
b) Posting the amounts from the journal entries to individual balance sheet and income statement accounts in a general ledger.
c) Making adjusting journal entries to the accounts to correct errors and to reflect the financial statement impacts of items that occur because of usage or the passage of time.
d) Preparing the income statement for the period from amounts in the income statement accounts.
e) Closing the temporary income statement accounts to retained earnings.
f) Preparing the balance sheet from amounts in the balance sheet accounts.
g) Preparing the statement of cash flows from balance sheet amounts and from details of transactions affecting the cash account.
2. What are the implications of information technology for accounting?
Information technology enables the companies to develop and use computerized systems to track and record financial transactions. IT allows companies to create individual report quickly and easily for management decision making. Also, other computerized accounting systems advantages are: increased functionality, improved accuracy, faster processing, and better external reporting.
3. Define accounting information systems (AIS).
An accounting information system is a collection of data and processing procedures that creates needed information for its users.
4. What are the implications of information technology for accountants?
IT networks and computer systems have shortened the time needed by accountants to prepare and present financial information to management.
1. The chapter discussed many inputs to a company's sales process. What are the specific data items needed to add a new customer and record a sales order?
When a new customer placed a sales order, the specific data items needed to add are: the customer’s name, shipping address, billing