tailieunhanh - Lecture Accounting information systems: Basic concepts and current issues (3rd edition): Chapter 2 - Robert L. Hurt

Chapter 2 - Transaction processing in the AIS. After studying this chapter you will be able to: Differentiate accounting and bookkeeping; list, discuss and complete, in order, the steps in the accounting cycle; identify common internal controls associated with the accounting cycle; describe common coding systems and how they are used in the AIS; explain how human judgment and information technology affect the accounting cycle. | Chapter 2 Transaction Processing in the AIS Outline Expected outcomes Accounting and bookkeeping The accounting cycle Internal control in the accounting cycle Coding systems Human judgment and information technology Expected outcomes Differentiate accounting and bookkeeping. List, discuss and complete, in order, the steps in the accounting cycle. Identify common internal controls associated with the accounting cycle. Describe common chart of accounts coding systems. Explain how human judgment and information technology impact the accounting cycle. Accounting and bookkeeping Accounting The process of Identifying Measuring Communicating Economic information to permit Informed judgments Decisions By users of the information. Bookkeeping The elements of accounting associated with Identifying Measuring Thus, bookkeeping is part of accounting—not its totality. The accounting cycle Steps completed each period to: Identify recordable transactions. Measure related dollar amounts. Record transactions in the AIS. Prepare general purpose financial statements. Two “big” pieces Steps that occur throughout the fiscal year Steps that occur at the end of the fiscal year Ten total steps in the accounting cycle The accounting cycle Throughout the fiscal year Obtain transaction information from source documents. Analyze transactions. Record transactions in the journal. Post to the ledger. Prepare a trial balance. End-of-year steps Record and post adjusting entries. Prepare adjusted trial balance. Prepare financial statements. Record and post closing entries. Prepare post-closing trial balance. The accounting cycle Lecture break 2-1 How would you record these transactions in the journal? Issued 5,000 shares of $1 par capital stock for $15 per share. Signed $10,000, 6-month, 6% note payable. Purchased inventory on account, $7,000. Sold inventory on account, $8,000. Cost of the inventory, $3,000. Purchased equipment with a list price of $12,000 by paying 20% down, financing . | Chapter 2 Transaction Processing in the AIS Outline Expected outcomes Accounting and bookkeeping The accounting cycle Internal control in the accounting cycle Coding systems Human judgment and information technology Expected outcomes Differentiate accounting and bookkeeping. List, discuss and complete, in order, the steps in the accounting cycle. Identify common internal controls associated with the accounting cycle. Describe common chart of accounts coding systems. Explain how human judgment and information technology impact the accounting cycle. Accounting and bookkeeping Accounting The process of Identifying Measuring Communicating Economic information to permit Informed judgments Decisions By users of the information. Bookkeeping The elements of accounting associated with Identifying Measuring Thus, bookkeeping is part of accounting—not its totality. The accounting cycle Steps completed each period to: Identify recordable transactions. Measure related dollar amounts. .