The Business Environment and the AIS An AIS does not exist in a vacuum; rather it is an integral part of the firm it serves. The AIS has close relationship with the organization of the firm and its physical operations or process. The firm itself is a system with its own environment. Many of the business and accounting events that are captured and processed by the AIS arise within the environment of the business firm. There are three subsystem of the firm: organizational‚ operational and information
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Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
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the accounting cycle as: “a process that includes the following steps: identifying‚ collecting and analyzing documents and transactions‚ recording the transactions in journals‚ posting the journalized amounts to accounts in the general and subsidiary ledgers‚ preparing an unadjusted trial balance‚ perhaps preparing a worksheet‚ determining and recording adjusting entries‚ preparing an adjusted trial balance‚ preparing the financial statements‚ recording and posting closing entries‚ preparing
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|36 | |Tolerance Groups |36 | |General Ledger Accounts (GL Accounts) |41 | |1.Negative Postings
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INTRODUCTION TO THE ORGANIZATION SREE HARI TEXTILE Introduction The SREE HARI TEXTILE have different departments like Spinning‚ Knitting‚ dyeing and garments manufacture. This textile is located at Coimbatore. The Textile was first established for the Manufacture and Export of Cotton Clothes and it gradually set up its own unit for knitting‚ Fabric‚ Dyeing and Spinning. Objective The main objective of SREE HARI TEXTILE is to produce and export cotton cloths. The other objective as part
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paying the first week by cheque. (Rent A/C) July 3 Bought 12 boxes of assorted cookies‚ on credit from “Island Suppliers Ltd” @ $300 each; and paid $100 cash to have them delivered i.e. (Carriage Inwards A/C). Purchased 2 boxes of paper napkins (General Expenses A/C) @ $600 each paying by cheque‚ and we received a receipt. July 4 Cash sales for the day amounted to $2 500; and we paid $1 200 cash to “Speed-O-Graphic Printers” for printing of signs and flyers (Printing and Stationary A/C); and we
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transaction authorization is to ensure that all material transactions processed by the information system are valid and in accordance with management’s objectives. No transaction shall occur unless it is authorized. Authorizations may be general or specific. General authority is granted to operations personnel to perform day-to-day activities. It rules specified in advance. Specific Authorizations deal with case by case decisions associated with nonroutine transactions. However‚ in IT environment authorization
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determine if sales are recorded in the proper period. b. Inspection of document/records ii. Cutoff; make sure sales are recorded in proper period. c. Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account. c. Reperformance-does total agree? iii. completeness d. Discussing the adequacy of the allowance for doubtful accounts with the credit manager. d. Inquiry iv. Valuation and allocation
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recorded on source documents such as invoices and checks; it ends with the completion of a post-closing trial balance. This cycle consists of the following steps: 1. Analyze and journalize transactions. 2. Post the journal entries to the general ledger accounts. 3. Prepare a trial balance. 4. Journalize and post the adjusting entries. 5. Prepare an adjusted trial balance. 6. Prepare financial statements. 7. Journalize and post the closing entries. 8. Prepare a post-closing
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MULTIPLE CHOICE 1. The owner’s equity in a business amounted to $56‚000 at the beginning of the year and $100‚000 at the end of the year. The owner had made no additional investments and had withdrawn $19‚000 during the year. The net income for the year amounted to a. $76‚000. b. $67‚000. c. $63‚000. d. $188‚000. ANS: C DIF: Medium OBJ: LO 6-1 MSC: AACSB Analytic 4. Changes in owner’s equity that result from investments or withdrawals of assets by the owner are included in the a. statement
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