College Accounting
Chapter 7 – Accounting Information Systems
Name _______________________
Pages 353 - 372
AN EFFECTIVE ACCOUNTING INFORMATION SYSTEM
Objective 1: Describe an effective accounting information system
Provides:
1.
2.
3.
4.
CONTROL
Internal controls can safeguard ______________________________________________________.
Give two examples of controls:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
COMPATIBILITY
In your own words, what does compatibility mean? _________________________________________________
___________________________________________________________________________________________
FLEXIBILITY
Why does your accounting system need to be flexible? ______________________________________________
___________________________________________________________________________________________
A GOOD COST/BENEFIT RELATIONSHIP
Why do you need this? __________________________________________
What is the goal of the system? ________________________________________________________________
COMPONENTS OF A COMPUTERIZED SYSTEM
Define & give examples of each:
Hardware –
Network—
Server—
Software—
HOW COMPUTERIZED AND MANUAL SYSTEMS WORK
Objective 2: Understand both computerized and manual accounting systems
Data processing includes three steps-- _______________________, _________________________ & _________________.
Give an example(s) of each:
Inputs—
Processing—
Outputs—
DESIGNING A SYSTEM: THE CHART OF ACCOUNTS
Look at the account numbers in Exhibit 7-3. Explain the logic of why Customer B’s account number is 115002.
___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
PROCESSING TRANSACTIONS: MANUAL AND MENU-DRIVEN SYSTEMS
What 5 journals are used in a manual system? _____________________________________________________________
___________________________________________________________________________________________________
How are computerized system organized? ________________________________________________________________
Define online processing: ______________________________________________________________________________
Define batch processing:_______________________________________________________________________________
ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
Give three examples of ERP _____________________________________________________________________
Advantages of ERP Systems:
1.
2.
3.
Objective 3: Understand how spreadsheets are used in accounting
INTEGRATE ACCOUNTING SOFTWARE: SPREADSHEETS
Advantage: link data by means of formulas and functions.
Advantage of using formulas in a spreadsheet ______________________________________________________
Examples:
a. Total assets = ______________________ + ______________________+ _______________________
b.
Net income = ________________________ - ________________________
c.
Current ratio = _________________________ / ___________________________
SPECIAL JOURNALS
Objective 4: Use the sales journal, the cash receipts journal, and the accounts receivable ledger
SPECIAL JOURNALS IN A MANUAL SYSTEM
A special journal is ___________________________________________________________________________________
Transaction
Special Journal
Posting Abbreviation
Transactions are recorded in either a __________________________ or ___________________________, but not ________.
If many businesses have computerized accounting systems, why learn manual? (Summarize only)
1.
2.
3.
THE SALES JOURNAL
POSTING TO THE GENERAL L EDGER
POSTING TO THE ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
JOURNAL REFERENCES IN THE LEDGERS
BALANCING THE LEDGERS
USING DOCUMENTS AS JOURNALS
THE CASH RECEIPTS JOURNAL
POSTING TO THE GENERAL J OURNAL
POSTING TO THE SUBSIDIARY LEDGER
BALANCING THE LEDGERS
Objective 5: Use the purchases journal, the cash payments journal, and the accounts payable ledger
THE PURCHASES JOURNAL