Accounting Information Systems
Accounting Information Systems FINAL STUDY
Chapter 7
The accounting cycle begins with a transaction by the customer to purchase a product and ends with the closing of accounts for the next period in the accounting cycle
The methods for accounting for the accounting cycle are through Journals, Ledgers and Trial balances and financial statements.
AIS use numeric or alphanumeric codes to record, classify, store and retrieve financial data
There are 4 types of codes they are Mnemonic codes, sequence codes, block codes and group codes
An exception report lists exceptional conditions
Characteristics of a good report are useful, convenient format, easy to identify and consistent
The chief concern for data collection is accuracy, timeliness, and cost effectiveness
A business process is a collection of activities and workflows in an organisation that create value
A business event does not affect the financial statement but it is still important to the business
A sales process begins with the customer order and ends with the collection of cash
Bankruptcy results from inadequate cashflows not negative income
Forecasting helps in the management planning function
If a company has charged a customer too little for goods it would issue a debit memorandum
Firms try to improve their customer relationship management (CRM)
Processing sales transactions allows for business outputs such as financial reports an example of a report is the accounts receivable ageing report which allows management to write off accounts receivable which may not be received
Accounts payable management is companies keeping track of amounts that the company owes
Vendors are partners in the supply chain
The purchase requisition indicates the purchase order
Discrepancy reports ensure that there are checks on the actual quantities and amounts on the purchase order
Much of the sales and Purchasing Process are electronic e.g. bar codes, video signals, magnetic ink characters etc.
RFID tags
Chapter 7
The accounting cycle begins with a transaction by the customer to purchase a product and ends with the closing of accounts for the next period in the accounting cycle
The methods for accounting for the accounting cycle are through Journals, Ledgers and Trial balances and financial statements.
AIS use numeric or alphanumeric codes to record, classify, store and retrieve financial data
There are 4 types of codes they are Mnemonic codes, sequence codes, block codes and group codes
An exception report lists exceptional conditions
Characteristics of a good report are useful, convenient format, easy to identify and consistent
The chief concern for data collection is accuracy, timeliness, and cost effectiveness
A business process is a collection of activities and workflows in an organisation that create value
A business event does not affect the financial statement but it is still important to the business
A sales process begins with the customer order and ends with the collection of cash
Bankruptcy results from inadequate cashflows not negative income
Forecasting helps in the management planning function
If a company has charged a customer too little for goods it would issue a debit memorandum
Firms try to improve their customer relationship management (CRM)
Processing sales transactions allows for business outputs such as financial reports an example of a report is the accounts receivable ageing report which allows management to write off accounts receivable which may not be received
Accounts payable management is companies keeping track of amounts that the company owes
Vendors are partners in the supply chain
The purchase requisition indicates the purchase order
Discrepancy reports ensure that there are checks on the actual quantities and amounts on the purchase order
Much of the sales and Purchasing Process are electronic e.g. bar codes, video signals, magnetic ink characters etc.
RFID tags