Represent the change in the financial reporting process after converting sales system to the real-time system.

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SYSTEM DOCUMENTATION-EXPENDITURE CYCLE (MANUAL AND COMPUTER PROCEDURES) The following describes the expenditure cycle for a hypothetical company. The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a server in the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below its reorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk. Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchasing department. A few days later, the supplier ships the order and the goods arrive at the receiving department. The receiving clerk reviews…

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Chapter 8, Problem 5P

To determine

Represent the change in the financial reporting process after converting sales system to the real-time system.

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SYSTEM DOCUMENTATION-EXPENDITURE CYCLE (MANUAL AND COMPUTER PROCEDURES) The following describes the expenditure cycle for a hypothetical company. The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a server in the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below its reorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk. Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchasing department. A few days later, the supplier ships the order and the goods arrive at the receiving department. The receiving clerk reviews…

DATA FLOW DIAGRAM—CASH DISBURSEMENTSPrepare a data flow diagram that reflects the activities presented in the process outlined in Problem 4.SYSTEM FLOWCHART APUsing the format presented in Figure 2-4 in the text, develop a similar flowchart for the process of paying vendor accounts payable.The Process: Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.

1. A clerk in the sales department receives a hard-copy customer order by mail and manually prepares four hard copies of a sales order. This is a typical event in the Group of answer choices b. Expenditure cycle d. Costing cycle a. Revenue cycle c. Conversion cycle 2. Which of these is not a true statement relating to manual and electronic accounting systems? Group of answer choices a. Large businesses integrate their accounting software with their overall computerised information system. b. The accounting principles underlying manual and electronic systems are fundamentally different. c. Computerised systems normally provide more reports, providing greater information to users, than manual systems. d. Most entities today use computerised accounting systems. 3. All of the following are advantages of using subsidiary ledgers, except Group of answer choices a. they make possible a division of labour b. they show all the transactions affecting customers and creditors.…