Accounting Information Systems

This assignment reviews basic accounting entries for a series of transactions, emphasizes the integration of journals to the financial statements, and introduces students to these journal entries in SAP ERP

Accounting Information Systems The Crossroads of Accounting and IT by Donna Kay, Ali Ovlia Test Bank

Before starting the Accounting Information Systems class, I had little idea of what accounting information was. After having Professor Carothers for previous accounting classes, I knew it would be a tough class but the knowledge I would gain would be well worth it and everlasting. Throughout this semester, I have learned a great deal of information, because of this it is hard to talk about everything. I decided instead of talking about everything I learned I would choose the topics I believe will be beneficial for later use, whether in school or at a job. The important topics I chose are; creativity, interviewing, cycles, frauds and errors, controls, and flowcharts. The proof of what I learned in this paper is the information stated in the following paragraphs in this paper. Some of the information stated in this paper was obtained from the sources posted on D2L for the AIS class of fall 2016 which is documented in my sources on the last page.

A. The time worked field in a payroll transaction record contained the value 400 instead of 40. As a result, the employee received a paycheck for $6,257.24 instead of $654.32.

18) The process of creating value for customers is the result of nine activities that form a

Accounting is a subject that it is very hard to grasp, if I say so myself. In order to run a successful and confident business, accounting is very necessary. Fortunately im here to help make your business and understanding of the accounting system as easy as possible. There are a number of benefits for companies that create and maintain an accounting system. All businesses are involved in three different types of activity. These three activities are financing, investing, and operating. The accounting information system keeps track of the results of each of these business activities.

The accounting information system has five major objectives. The first one is to identify and record transactions that are valid. The second one is to describe the transactions with sufficient detail to permit proper classification of transactions for financial reporting. The third objective is to measure the value of transactions in such a way that allows their proper monetary value to be recorded in the financial statements. The fourth objective of the accounting information system is to determine the time period in which transactions occurred so that they are recorded in the proper accounting period. The fifth objective is to properly present the transactions and any related disclosures in the financial statements.

Accounting information system is a transaction based information system as it deals with the economic events taking place in the enterprise. Most of these economic events take place in the course of day-to-day operations of the business enterprise. In the past, ac¬counting information systems were designed primarily for report-ing to statutory bodies such as tax authorities, regulatory authori¬ties and investors. Very little information was generated to meet the information needs of managerial decision making. The focus of accounting information has changed. It focuses more on generation of information for use in managerial decision making process. An accounting information system that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources.

Quality of accounting information includes reliability, relativity, timeliness and some other features, and it directly connect with the decision-making and operating result. Impact from accounting informatization, accounting information system (AIS) belongs to the management control layer and presents the accounting principle. At the same time, it will make for the improving of accounting information quality.

In essence, accounting information system is not necessarily a computerized system, it can be merely a simple manual system using pen and paper. However, with the rapid development of cloud computing, it has an increasingly significant impact on the revolution of accounting information system.

In a global world where society is driven by technology it is almost impossible for any form of business or organization to succeed without the proper technological advances. Businesses have heavy reliance on their information systems for accuracy which helps management with making decisions.

Accounting is an information science used to collect, classify, and manipulate financial data for organizations and individuals.

* Concepts: Users, accountants and accounting form a connected system. The demand for useful information shapes how financial accounting information is prepared.

Accounting Information System, also known as AIS, is a system that collects, stores and processes accounting and financial data for decision makers, is a common definition of AIS. An AIS is commonly a computer based method for tracking accounting information in conjunction with various information technology resources (Vrcek, 2013). The collected and processed data then is used to create statistical reports which can be used internally by the management department of a company or even by external parties like investors, creditors and tax authorities for decision making.

Mrs. Sally runs a bakery business, Sweet Delight which caters to both individuals and businesses. However, there are some flaws found in her current sales system that caused a loss of significant amount of money. Hoping that she’s able to improve her cash flow, there are some weaknesses highlighted in her current practice.