...transactions of a business entity in a chronological order. Accounting Accounting is the process of recording, classifying, reporting, analysing, interpreting and communicating of financial information to the stake holders. Accounting is the combination of all the 6 fields while bookkeeping is only a part of the accounting process. Double Entry System According to this system, every business transaction has a two-fold effect and that it affects two accounts in opposite directions. One of the two aspects is the benefit receiving aspect or “incoming aspect” (termed as Debit) and the other is the benefit giving aspect or “outgoing aspect” (termed as Credit). For every transaction, one account is to be debited and another account is to be credited in order to have a complete record of the transaction. The basic principle under this system is that for every debit, there must be a corresponding and equal credit and for every credit there must be a corresponding and equal debit. Following this principle, the arithmetical accuracy of the accounts can be checked by preparing a Trial Balance, where the total of Debits and Credits should tally. It is a scientific system maintaining a complete record of transactions which helps in the ascertainment of profit/loss and financial positionof the business while maintaining the accuracy of accounts Accounting Cycle The entire accounting cycle is based on the double entry system. Once a transaction occurs, it is recorded in the form of a...
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...Bookkeeping and Accounts (City & Guilds Level 2) Course Content: At the end of the course candidates should be able to to do the following at Level 2: * Ledger Accounting: Post ledger transactions, total and balance accounts, bringing down balances: sales ledger; purchase ledger; general ledger. * Control Accounts: Prepare and reconcile control accounts with individual ledger account balances in subsidiary ledgers for: sales ledger control account; purchase ledger control account. * Correction of errors: Identify different types of errors in ledger accounts: incorrect double entries, missing entries, numerical inconsistencies, incorrect calculations. Make appropriate adjustments in the Journal and the respective ledger accounts. Create and clear a suspense account where necessary. * Accounting for capital expenditure and depreciation: Distinguish between capital and revenue expenditure; Record depreciation using: straight line method, reducing balance method. Prepare accounts for depreciation and provision for depreciation. * Year end adjustments: Write off bad debts; Create and increase/reduce the provision for doubtful debts account; Account for accruals and prepayments in ledger accounts; Make appropriate adjustments in the journal; Prepare a trial balance from cash book and ledger balances; Prepare a revised trial balance from one initially drafted incorrectly. * Extended trial balance: Complete an extended trial balance making adjustments...
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...Over the last 500 years, the double-entry system of accounting has provided the accounting profession with a reliable and accurate way of tracking the economic events of companies. However, with the implementation of computer-based accounting systems over the last few decades, event based accounting has gained popularity. The theory behind event based accounting is that each business transaction can be broken down into one, or a combination of three types of events: economic, business, and information. An economic event is one in which the quantity of resources change, such as selling an item or purchasing a service. Events like receiving an invoice from a supplier, or sending out a purchase order to a vendor are examples of business events. They are necessary to the company even though they are not the monetary or physical transactions for goods or services. Tasks like creating reports and inputting new customers are considered information events. Information events provide the necessary data for the economic or business events that transpire. The double-entry system of accounting focuses on taking those separate events and aggregating them into journal entries. By aggregating them, a great deal of the total information of the event is left out. Under an event based accounting system each event is recorded with as much of the information as possible, and then stored in tables of data that allow the user to recall and compile this information into usable reports. This...
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...CHAPTER 1 INTRODUCTION Accounting Information Systems is concerned with the way computerized information systems impact how accounting data is captured, processed, and communicated. This course book introduces you to the people, technology, procedures, and controls that are necessary to conduct internal and external e-business, with an emphasis on the internal controls over such systems. It also highlights the relationship between accounting and management information systems. Finally, accountants, information system professionals, lectures, students and the general public are recommended to get copies. CHAPTER 2 LITERATURE REVIEW Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations. AIS TECHNOLOGY Input The input devices commonly associated with AIS include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come "Web-enabled" to allow devices to connect to the World Wide Web. Process Basic processing is achieved through computer systems ranging from individual personal computers...
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...BSA310 Week 3 Supporting Activity With the topic of accounting and finance it is important for business owners to know and understand the value of properly accounting for their cash flow, assets, and liability. This is especially true for new business owners who are just getting started. Accounting is one of the most important functions of a business because if done right the company will do fine and grow, but if done wrong or poorly, then the company will be in a virtual tailspin that will send the company out of business or even into bankruptcy. With accounting being such an important entity there are many options for an owner to choose from when it comes to accounting. Most options nowadays are accounting software applications of some kind, either web-based or stand-alone. However, some small businesses are still doing hard copy paper accounting, which is much more difficult in this day in age. Owner’s Equity One of the first concepts a new owner must understand is how he can determine his owner’s equity. This is a pretty simple business equation that can be best explained to be like the hands of justice, where they always need to be balanced. What happens on one end needs to happen on the other end to stay balanced. The equation is simply assets=liability+owners equity. This equation tells the owner where the company stands. The assets are what the company physically owns like work trucks and how much product. Where the liability is how much the company owes to place...
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...The Effects of Technology on the Accounting Profession Eliot Sherman ACC/340 June 11, 2015 Michael Raponi According to Accounting Web, the next decade will see industries transition to a Cloud-enabled world where work can be accomplished anywhere, anytime. This will especially be true of the accounting profession, according to Intuit, as such tools as Cloud-connected smartphones and tablets will enable firms to provide clients with an "accountant in their pocket" at all times. In the modern age, technology is constantly evolving and this has an effect on every profession, especially accounting. Processes and procedures are becoming less manual and more automated. Accounting begun being all written and having hard copies as the only backup. Systems are becoming more advanced and powerful which allows them to aggregate large amounts of data. As time went on, new software and hardware allow calculations to occur more quickly and allow backup to be more readily accessible. As well, with accounting constantly changing, the standards and regulation overseeing the profession were as well. As well, a lot of companies in the early 2000s when the technology bubble was building, companies such as Enron and WorldCom tried to take advantage of lax audit rules and committed extensive fraud. This constantly requires technology to change to allow for it to be in line with what is required, specifically in relation to audits and GAAP. In this digital age, technology adapts and improves...
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...Effects of Technology on the Accounting Profession ACC/210 August 15, 2011 Effects of Technology on the Accounting Profession Technology, information, software, and even the machines used to input, translate, and interpret the data we enter are ever evolving at shocking rates. We must constantly stay on top of our skills in order to be able to navigate through the vast screens, shortcuts, functions, and utilities stored in these small computers that have the capacity to do what would take a room full of human brains to do in a fraction of the time. In a time where nearly every occupation can be automated, accounting is nearly no exception, but notice I did say ‘nearly.’ With a vast array of software programs, data collection methods, and forms of technologies to keep accounting professionals up to the minute on their financials, there is little reason to justify the use of the antiquated legal sized general ledger books anymore. By integrating AIS effectively in the manufacturing industry, the accounting department where I work has been able to promptly and accurately produce cost analysis reports for the machines we produce, determine our SG&A at any given point, and determine whether a customer’s credit can be extended based on their average days of payment. AIS are invaluable tools that are overlooked for the value that they truly add to an accounting department. An accounting information system is a system that combines traditional accounting practices such as the Generally...
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...Finance and Accounting Information systems used in Aviation sector Finance and Accounting Information systems used in Aviation sector SUBMITTED BY: BHAVIK K. VORA 421 MBA (Tech.) Telecommunications Contents | SR. NO. | TOPICS | PAGE NO. | 1 | Aviation Sector: An overview | 3 | 2 | Effect of information system in aviation sector | 3 | 3 | Finance and accounting information system | 4 | 4 | Sirax Airfinance platform by Lufthansa systems syssystesm | 4 | 5 | Sirax Revenue Accounting | 5 | 6 | Sirax Cost Accounting | 8 | 7 | Sirax Business Intelligence | | Aviation industry: An overview The aviation industry traditionally grew due to increase in demand of business travellers as the companies started expanding their operations in different places all over the world. Moreover rise and income of the people had a positive effect on the tourism industry and thus leading to the growth of aviation industry. Deregulation and Privatisation of the aviation industry provided further impetus to its growth. Since 1970, the growth rate in the aviation industry has been about 6-7% Sirax Airfinance platform by Lufthansa systems With respect to the uncertainties that airlines are facing today, Sirax Airfinance platform can prove to be of great help to the airlines as it provides the right information at the right time. It keeps the airline updated about their operations and financial condition. It provides the airline with timely, accurate...
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...INTERNSHIP REPORT ON ACCOUNTING INFORMATIONSYSTEM OF REAL ESTATE BUSINESS IN BANGLADESH”-AN EMPIRICAL STUDY OF [pic] PREPARED FOR Farzana Afrin Internship Supervisor & Lecturer Dept. of Business Studies Stamford University Bangladesh. PREPARED BY Mahmood Hossain Id: 02707400 Section: 27(Q) Date: LATTER OF TRANSMITTAL April Ms Farzana Afrin Lecturer Stamford University Dhanmondi, Dhaka Dear Madam, I feel myself fortunate enough for having the scope to conclude the study on “The Accounting information System of Real Estate Business in Bangladesh”-An Empirical study of Building For Future Ltd, Which you assigned me to do as a part of the study. Obviously, this type of practical work made me acquainted with “Real Estate Finance” in real life situation. Here, I can’t deny the help that I got from the staff of Building For Future Ltd. who ensured me a full congenial atmosphere to access over a plenty of information with relevant papers and a practical survey. I am thankful to them for showing their highest degree of tolerance in answering my inexorable questions, sometimes repeated. I would enthusiastically provide you related information depending on your queries. The report was prepared under your able leadership and I do respectfully appreciate guidance to me to learn about...
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...Accounting Information Systems, 13e (Romney/Steinbart) Chapter 1 Accounting Information Systems: An Overview 1.1 Distinguish data from information, discuss the characteristics of useful information, and explain how to determine the value of information. 1) Which of the following statements below shows the contrast between data and information? A) Data is the output of an AIS. B) Information is the primary output of an AIS. C) Data is more useful in decision making than information. D) Data and information are the same. Answer: B Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 2) Information is best described as A) raw facts about transactions. B) data that has been organized and processed so that it is meaningful to the user. C) facts that are useful when processed in a timely manner. D) the same thing as data. Answer: B Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic 3) The value of information can best be determined by A) its usefulness to decision makers. B) its relevance to decision makers. C) the benefits associated with obtaining the information minus the cost of producing it. D) the extent to which it optimizes the value chain. Answer: C Objective: Learning Objective 1 Difficulty: Moderate AACSB: Analytic 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits ...
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...Accounting Information Systems, 12e (Romney/Steinbart) Chapter 1 Accounting Information Systems: An Overview 1) Which of the following statements below shows the contrast between data and information? A) Data is the output of an AIS. B) Information is the primary output of an AIS. C) Data is more useful in decision-making than information. D) Data and information are the same. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 2) Information is A) basically the same as data. B) raw facts about transactions. C) potentially useful facts when processed in a timely manner. D) data that has been organized and processed so that it's meaningful. Answer: D Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 3) The value of information can best be defined as A) how useful it is to decision makers. B) the benefits produced by possessing and using the information minus the cost of producing it. C) how relevant it is. D) the extent to which it maximizes the value chain. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Moderate AACSB: Analytic 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A Page Ref: 10 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 5) Information that reduces uncertainty...
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...Computer Information System Brief Tina Monteverdi Accounting Information Systems ACC/542 July 15, 2013 Milan Havel Computer Information System Brief Kudler Fine Foods prides their selves on providing an upscale environment with all of the very best domestic and imported foods and wines. They have an experienced and knowledgeable staff that is able to assist customers. The founder, Kathy Kudler developed a business plan and obtained a financing and was able to open a store all within a six month time a turn that business into a profitable business in the first year. Over the next five years 2 more stores were opened and continuing to thrive. In order to continue growing Kudler’s is evaluating their accounting information system needs and determine if there are changes that can be made to improve their systems with either system changes or technology upgrades, as well as identify an potential technology threats that may need to be addressed. Identify Kudler’s Key business and Accounting Information Needs Kathy Kudler and her management team understand the benefits of a system that would meet the needs of this business and help to continue to thrive. Kudler’s computer system will be used to integrate their point of sale (POS) systems along with their asset management and accounting, accounts payable modules, general ledger, bank reconciliations, and lastly one of the most important systems the security systems. “The initial business plan for Kudler’s included...
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...HI5019 Strategic Information Systems for Business and Enterpise (T1, 2013) Assignment (20% of Final Mark) The assignment has two parts namely Part A (20 marks) & B (20 marks). Part A will require you to answer four (4) questions. Part B will involve two (2) cases selected form you textbook, Accounting Information Systems 8th edition by James A. Hall. The assignment aims to develop an understanding of Accounting Information Systems structure and their use in the business setting. The task is to answer questions relating to transaction processing, ethics, fraud and internal control. This assignment itself includes several assignments, each of which comprises a part of the students’ task. However, it is well encouraged to include any additional information that students may think will be useful in completing the task. General Rules and Requirements: Reports must be confined to 3,000 words (+/- 5%). As a minimum, a title page, table of contents page (based on your report headings), introduction, conclusion and references should be included. Font type should be Arial (size 11), paragraph spacing should be 1.5. Note: Any additional material from external sources that you “copy and paste” into your report is NOT included in the word limit. Also, ensure it is appropriately referenced. PART A (20 marks) 1. How does SOX affect the provision of attest and advisory services? (5 marks) 2. Compare and contrast the relative advantages and disadvantages of sequential, block,...
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...Accounting System Rosemarie Blakley BSA/310 April 28, 2013 Anastasia Jakubow Accounting System Although Kudler Fine Foods currently has an accounting system that they are using that seems to be adequate, the goal in the future is for the organization to continue to grow, and along with this growth is going to come the need for a more comprehensive system that can support their growing changes. We all know that proper accounting practices are one of the most important things in any business, and Kudler is no exception. After careful review of different accounting software that is out there on the market today, I personally think that QuickBooks by Intuit would be a logical solution to their growing needs. Key Features: The key features for this new accounting system should include all of the things that are necessary for the growth of a smaller enterprise. The software should be able to keep track of all of the company’s financial transactions. It should be a financial accounting and reporting system all in one. The software should also have the capability to record all of their transactions as well as report all of the operating data at the end of each quarter or month, whichever the organization prefers, and it also needs to help analyze all of their financial data. QuickBooks accounting software does well to allow for journal entries by debiting and crediting the financial accounts, such as liabilities, assets, revenues, and expenses. Kudler can even use this software...
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...in violation of the honesty code. Choose the BEST answer on the multiple choice questions. The discussion questions can be written by hand or typed. ACC/BUS 333.01 Semester Test 1 Name:___________________________________ Multiple Choice Questions: Please circle the best response. (1.5 points each) Which of the following is not an example of a source document?Receiving reportPurchase orderSales orderAging reportJob costing systems are most appropriate for:a)Home builders b)Textbook publishers c)Beverage companies d)both a and b are appropriate industries for job costing systems An important input to the sales process is: A customer sales order The cash forecast Aged accounts receivable information A receiving report It is generally true of not-for-profit organizations that they: Are profit-oriented despite their name Are always evaluated using profit measuresAre not governed by accounting standardsEmphasize funds rather than income in their internal accounting systems 5. According to the text, all of the following are objectives of the human resource management process except: a) Hiring, training, and employing workers b)Counseling employees on retirement and medical benefits c)Maintaining employee earnings records d)Reporting on payroll deductions 6. Which of the following outputs (reports) are common to both the sales process and the purchasing...
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