ch07 - CHAPTER 7 Accounting Information Systems STUDY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 7 Accounting Information Systems STUDY OBJECTIVES 1. IDENTIFY THE BASIC PRINCIPLES OF AC- COUNTING INFORMATION SYSTEMS. 2. EXPLAIN THE MAJOR PHASES IN THE DE- VELOPMENT OF AN ACCOUNTING SYSTEM. 3. DESCRIBE THE NATURE AND PURPOSE OF A SUBSIDIARY LEDGER. 4. EXPLAIN HOW SPECIAL JOURNALS ARE USED IN JOURNALIZING. 5. INDICATE HOW A MULTI-COLUMN JOURNAL IS POSTED. 7-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
CHAPTER REVIEW Accounting Information Systems 1. (S.O. 1) An accounting information system involves collecting and processing data and disseminating financial information to interested users. It includes each step of the account- ing cycle. 2. The basic principles of an accounting information system are: a. Cost effectiveness . The system must be cost effective: the benefits of the information disseminated must outweigh the cost of providing it. b. Usefulness. To be useful the information must be understandable, relevant, reliable, timely, and accurate. c. Flexibility. The system should be able to accommodate a variety of users and changing in- formation needs. Developing an Accounting System 3. (S.O. 2) There are four phases in the development of an accounting system. a. Analysis involves determining internal and external information needs, identifying sources of information and the records and procedures for collecting and reporting the data. b. Design includes both the development of a new system and the redesigning of an ex- isting system. c. Implementation relates to making the new or revised system operational. d. Follow-up involves the monitoring of the new or revised system for weaknesses or breakdowns. Manual vs. Computerized Systems
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

ch07 - CHAPTER 7 Accounting Information Systems STUDY...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online