A-1
Appendix A
A
Computerized Accounting
LLearning
ea
Objectives
After you have completed this chapter, you will be able to do the following:
1 Identify the advantages and disadvantages of a computerized accounting system.
3 View and print reports using QuickBooks®
Pro®.
2 Record (a) a group of transactions and
(b) adjusting entries pertaining to a
service business in a computerized
general journal using QuickBooks® Pro®.
4 Record closing entries pertaining to
a service business in a computerized
general journal using QuickBooks® Pro®.
Accounting
Language
IIn
nC
Chapters
hap
pter 1 through 5, you learned how to record transactions for Conner’s Whitewater
Adventures
A
dven
ntu
ure using a manual accounting system. In a manual accounting system,
accounting
acccou
unttin transactions are recorded by hand rather than on a computer. In this chapter,
you
will
how to record transaction using a computerized accounting system.
you
uw
illl learn
le
CHARACTERISTICS
C
HARA
OF COMPUTERIZED
ACCOUNTING
A
CCOU
SYSTEMS
A ccomputerized
om
mput
accounting system records accounting transactions using a computer
software. There are many types of accounting software. QuickBooks®
aand
nd
d aaccounting
cccou
Peachtree®
are two software programs that are often used by small businesses.
aand
nd
d P
eaach
Large
multimillion-dollar
companies often invest in extensive software known as
L
arrgee m
u
enterprise
e
ntterprris resource planning (ERP) software. ERP software integrates not only the
accounting
acccou
unttin system but also other areas such as human resources, manufacturing, project
management,
and customer relationship management.
manaageem
Advantages
A
dvant
and Disadvantages of a
Computerized
Accounting System
C
ompu
A majority
majorit of companies use some form of a computerized accounting system. They
do
because
the advantages of a computerized accounting system far outweigh the
d
o so
ob
ec
disadvantages.
Some of the advantages of a computerized accounting system are as
d
isadvvan
nta
ffollows:
olllow
ws:
1
Identify the advantages
and disadvantages
of a computerized
accounting system.
Learning
Objective
Backups (p. A-2)
Center (p. A-5)
Cloud computing (p. A-5)
Computerized
accounting system (p. A-1)
Enterprise resource
planning (ERP)
software (p. A-1)
Export (p. A-9)
Manual accounting
system (p. A-1)
Profit & loss
statement (p. A-8)
– Computerized accounting systems automatically complete many
• Automatic
Auto
parts
parts of the accounting cycle. Once a user enters a transaction, the software posts
the
thee ttransaction to the ledger and updates the financial statements. In addition,
computerized
accounting systems perform financial calculations such as totaling
com
mp
revenue
revven and expenses and determining net income.
– Computerized accounting systems allow companies to prepare up• Timeliness
Tim
me
to-date
to--da financial reports quickly. In addition, accountants can easily locate specific
transactions
they want to review or investigate.
traans
A-1
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