tailieunhanh - Lecture Fundamental accounting principles (19/e) - Chapter 7: Accounting information systems

After completing this chapter you should be able to: Identify the principles and components of accounting information systems, explain the goals and uses of special journals, describe the use of controlling accounts and subsidiary ledgers. | ACCOUNTING INFORMATION SYSTEMS Chapter 7 Chapter 7: Accounting Information System FUNDAMENTAL SYSTEM PRINCIPLES Control Principle Internal controls for management to monitor the business. Relevance Principle Provide relevant, timely and pertinent information. Compatibility Principle System must be compatible with aims of the company. Flexibility Principle System needs to meet the changing needs of company. Cost-Benefit Principle Benefits of the system must outweigh the costs incurred. C1 Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decisions makers. In an accounting system, the fundamental principles that must be included in any system are: control, relevance, compatibility, flexibility, and cost-benefit. Internal controls are an integral part of an accounting system to help management monitor the business. We also hope that an accounting system provides information that is relevant, timely and pertinent. The accounting system should also be compatible with the aims of the company. Flexibility in an accounting system is important to be able to meet the changing needs of the company. But as with most things, the benefits of the accounting system should outweigh the costs incurred. COMPONENTS OF ACCOUNTING SYSTEMS Increasingly, source documents are electronic files creating a “paperless” system. Source Documents Invoice from supplier Billings to customers Employee earnings records C2 In an accounting system, the source documents provide the support for recording and processing transactions in the system. Source documents can be on paper or in electronic form. Printer Monitor LCD projectors Web communications Output Devices COMPONENTS OF ACCOUNTING SYSTEMS Storage Information Processor Input Devices Source Documents C2 Output devices are the means to take information out of an accounting system and make it available to users. Common output devices are . | ACCOUNTING INFORMATION SYSTEMS Chapter 7 Chapter 7: Accounting Information System FUNDAMENTAL SYSTEM PRINCIPLES Control Principle Internal controls for management to monitor the business. Relevance Principle Provide relevant, timely and pertinent information. Compatibility Principle System must be compatible with aims of the company. Flexibility Principle System needs to meet the changing needs of company. Cost-Benefit Principle Benefits of the system must outweigh the costs incurred. C1 Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decisions makers. In an accounting system, the fundamental principles that must be included in any system are: control, relevance, compatibility, flexibility, and cost-benefit. Internal controls are an integral part of an accounting system to help management monitor the business. We also hope that an accounting system provides information that is .