basics-of-accounting-information-processing

A truly correct and up to date set of financial

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ,000 $2,000 1,000 Net income Assets 3,000 $9,000 Liabilities A ccounts payable N otes payable Total liabilities XAO CORPORATION Statement of Retained Earnings For the Year Ending January 31, 20X3 Retained earnings - January 1, 20X3 P lus: Net income R etained earnings - January 31, 20X3 $ 500 10,000 $10,500 Stockholders’ equity $- C apital stock R etained earnings Total stockholders’ equity Total liabilities and equity 9,000 $9,000 Less: Dividends $26,300 3,200 15,000 $44,500 C ash A ccounts receivable L and Total assets $25,000 9,000 34,000 $44,500 $9,000 Download free eBooks at bookboon.com 42 Basics of Accounting & Information Processing Computerized Processing Systems 10. Computerized Processing Systems You probably noticed that much of the material in this chapter involves rather mundane processing. Once the initial journal entry is prepared, the data are merely being manipulated to produce the ledger, trial balance, and financial statements. No wonder, then, that some of the first business applications that were computerized many years ago related to transaction processing. In short, the only “analytics” relate to the initial transaction recordation. All of the subsequent steps are merely mechanical, and are aptly suited to computerization. Many companies produce accounting software. These packages range from the simple to the complex. Some basic products for a small business may be purchased for under $100. In large organizations, millions may be spent hiring consultants to install large enterprise-wide packages. Recently, some software companies have even offered accounting systems maintained on their own network, with the customers utilizing the internet to enter data and produce their reports. 10.1 What do they Look Like As you might expect, the look, feel, and function of software-based packages varies significantly. Each company’s product must be studied to understand its unique attributes. But, in general, accounting software packages: Attempt to simplify and automate data entry (e.g., a point-of-sale terminal may actually become a data entry device so that sales are automatically “booked” into the accounting system as they occur). Frequently divide the accounting process into modules related to functional areas such as sales/collection, purchasing/payment, and others. Attempt to be “user-friendly” by providing data entry blanks that are easily understood in relation to the underlying transactions. Attempt to minimize key-strokes by using “pick lists,” automatic call-up functions, and auto complete type technology. Are built on data-base logic, allowing transaction data to be sorted and processed based on any query structure (e.g., produce an income statement for July, provide a listing of sales to Customer Smith, etc.) Provide up-to-date data that may be accessed by key business decision makers. Are capable of producing numerous specialized reports in addition to the key financial statements. Following is a ve...
View Full Document

This document was uploaded on 09/24/2013.

Ask a homework question - tutors are online