Assignment 1
Question 1
Accounting information system is the system that collect, store and process accounting data, organisation resource and its activities to provide necessary information to make decision in business. It converts data into information so business house can plan, control, implement and analyse its activities and resources.
It provides supplementary control to safeguard the assets and data of business (Romney, 2012).
Accounting information system plays a major role for corporate organisation supplying the financial data to make decision as well as provides information in production, human resource, finance, management, marketing and supply chain logistics. Traditional information technologies are not suitable in present
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Internet has changed the way the of doing job and activities changing the both strategy and corporate strategic implementation (Romney, 2012)
Cloud accounting has become the important tool in increasing the value chain of the organization if it is implemented the design according to the need of the corporate vision. Proper use of the system can improve the quality which eventually reduces the cost of product or services the organization provides to customer. This maintains the product quality where the system quickly notifies the users if any downfall occurs in performance or in quality so it observes and monitor machinery too. AIS increases the value of organization by improving efficiency where timely information can only increase the manufacturing performance within the time frame. It allows its employee easy access to the information as well as to its customer on stocks and sales order which reduces the cost of marketing and advertising cost that subsequently increases the retention rates of the customer. AIS with proper utilization can overcome fraud, errors, system failures at the same time improves and control the internal structure of the organization which maintains the value of the organization, Organization performs various activities to supply value to their customer. Furthermore, primary activities like inbound logistic and outbound logistics which receives,
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
Information system: Information is available and clear to communicate responsibilities and expectations. Every system within a business that processes accounting data should capture transactions as they occur, journalize transactions in an accurate and timely manner. Also, posting those transactions in the books, and report the transactions in the form of account balances in the financial statements.
In the modern business today, there is no more manual accounting. Instead a lot of companies and businesses all over the world are trying to use and adapt by having an accounting system that is computerised, less hassle and fast processing.
All recorded data related to accounting can be managed under the accounting information system database. The confidential information in AIS must be available and protected with authorizations only each division should have access to. Each user has a personal identification and authentic password for authorization to the system and departmental data access. Some AIS also has security resets to users so their access isn’t compromised. This eliminates risk associated with internal data abuse and unauthorized department access. AIS have virus, disaster recovery and system updates. A virus will be a disaster for AIS. Whether internal or external, a threat can destroy a system data. Information security has keep accounting systems protected from
Accounting Information Systems The Crossroads of Accounting and IT by Donna Kay, Ali Ovlia Test Bank
On January 1, Puckett Company paid $2.64 million for 88,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $613,000. What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?
As long as this world have businesses and buying and selling within company to company accounting and Accounting Information Systems (AIS) will play a big role in financial management and decision making. The degree of value and how usable an AIS is depending on if the system is custom, outsourced or boxed. In this paper I will talk about just that. You will find out if the company should keep, change, modify or outsource and what will be the advantages and disadvantages of doing so. Analyze the need for changing to a new system and the potential benefits and risks associated with this. Identify three (3) advantages
As a consultant it is my responsibility to recommend the best direction for a new business to follow in order to be successful in financial documentation. It is very important for a new business/owner to understand the functions of accounting and its’ basic accounting system. Since Accounting Information Systems (AIS) is used to store, collect and process financial information. It would be wise for a new business to know the ins and outs of recording their finances so that they can keep track of their finances to see if they are gaining or losing a profit.
With the world and its technology advancing at such a fast pace, it is important that accountants and their firms to try to keep up. In the world of accounting, new technology is made every day in hopes to make the lives of the people in it easier. From limiting human error, to making information accessible from around the world, accountants are looking for new technology that can help them deal with the problems they are facing. With that, here are three new technology methods that are being used today that is improving that accounting process and limit the risk for the accountant. These technology methods are having a centralized database, the Optical Character Recognition Software, and the new advancements in the use of mobile
1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers.
To answer this question, first scale up both of the figures. The units increased by 20% from a base of 3000, so (1.2)(3000) = 3600 units were sold. The price at which they were sold was a 10% increase on a base of $50, so (1.1)(50) = $55. The total gross revenue therefore is (3600)($55) = $198,000. To calculate the net revenue, the 6% returns must be subtracted from the gross figure: (198,000)(.94) = $186,120
However, the constant growing and changing field of IT has had an important impact on all levels of the firm’s organization. In this context, the term "information management" has emerged as the most common name. As rue result, management information systems were developed to support the new role of accountant. This new role forced accountants to become the interpreter of information and to deal with the information overload. Now, the accounting department is now responsible to
18) The process of creating value for customers is the result of nine activities that form a
Information systems changed forever the way accounting tasks are processed. The days of green paper pads are gone, and instead businesses have a centralized place where all accounting transactions are entered and saved. No more looking for paper
James Guisti, the manager of the North Providence branch of the Greater Providence Deposit & Trust Bank took out 67 fraudulent loans all with 90-day notes over a 3-year period. He did this to fund his gambling addiction and pay off its debts. When a loan matured, he paid off the loan by creating another 90-day note loan and kept rewriting the loans to make more money off of them. He committing identify theft by using the name of his wife, his father, two friends of his, and a fictitious person. No documentation was provided for any of the loans. The loans were in low amounts that they would not be flagged by internal auditors or his employees.