What are computerized accounting systems?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
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What are computerized accounting systems?

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Step 1 Introduction

Computerized Accounting System: In the traditional approach, accounting is done as per a manual system like collecting, organizing, recording, journalizing, and posting,& reporting but nowadays all these done by the automatic Computerised accounting system or Accounting information system after entering the transcation into the computer system.

There are two types of computerized accounting system:

  1.  Single Entry System
  2.  Double Entry System

The components of a computerized accounting system:

  •  Hardware — This refers to the electronic physical elements that are connected to the computer for operating it.
  •  Software — This refers to the set that instructs the hardware to complete a particular desired task.

 

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