topic 4 acc info

topic 4 acc info - System components that work together to...

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System – components that work together to achieve an objective. 3 types of business processes- Management - processes that govern the operation of system. Eg: corporate governance and strategic management. Operational - processes that constitute the whole business and create primary value stream. Eg: purchasing, manufacturing, marketing and sales Supporting- processes which support the core processes. Eg: accounting, technical support Business process begins with customer’s need and ends with the need’s fulfilment. It can be decomposed into sub processes down to activity level. A well designed business process ADDs value for the customer by increasing effectiveness (value for customer) and efficiency(less costs for company) Steps in financial accounting process The accounting cycle is analysis of a transaction from a source document. A source document records a business activity such as the purchase or sale of goods, can be a piece of paper, or can be in electronic form. Journal is a chronological record of business events by account. May be a general journal or a special journal a general journal allows any type of accounting transaction to be recorded, a special journal captures specific types of transactions. The account structure for an organisation is determined by its Chart of accounts. The chart of accounts is a classification of accounts into assets, liabilities, revenue and expenses. Journals may be in a general journal or in specialised journals such as Sales Journal- Record of credit sales transactions Purchases Journal- Record of credit purchase transactions Cash Receipts Journal- Record of transactions involving receipts of cash (records payments made to company) Cash Disbursements Journal- Record of transactions involving disbursements of cash Journals show all aspects of transaction – debit, credit amounts, date, the accounts involved, and a description of the event. The general ledger is a collection of monetary information about the organisations assets, liabilities, owner’s equity, revenues and expenses. The ledger is classified into accounts according to the chart of accounts trial balance is a worksheet listing the balance at a certain date, of each ledger account in two columns, namely debit and credit . In any transaction the total of any debits must equal the total of any credits, trial balance thus
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This note was uploaded on 11/09/2011 for the course AFF 2851 taught by Professor Red during the Three '11 term at Monash.

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topic 4 acc info - System components that work together to...

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