Accounting as an information system, Accounting Basics

As discussing the scope of accounting you should have observed here the accounting involves a sequence of activities connected with each other, starting along with the collecting, recording, evaluating and analyzing the data and lastly communicating information to its users. Information has no sense unless it is connected with an exact purpose.

Accounting as a social science can be analyses as an information system as this has all the characteristics of a system.  This has its inputs as raw data, processes as men and equipment and outputs as reports and information. If we see accounting like an information system, then we are in a position to make several significant observations. Initially, the goal of the system is to give information that meets the needs of its users. If we can appropriately identify the requirements of the users, we are after that capable to identify the nature and character of the outputs of the system. Secondly, this is the output needs that. Find out the type of data that would be chosen as the inputs for processing in information output.

There are some groups of people who have a stake in business organization managers, creditors, shareholders, workers, customers and so on. Moreover, the community at large has economic and social interest in the activities of these organizations. Such interest is illustrated at the national level through the concern of government in different aspects of the firms' activities, as their economic comfort, their contribution to welfare and their part in the development of the national product, to state only a few illustrations.

Posted Date: 4/2/2013 6:52:41 AM | Location : United States







Related Discussions:- Accounting as an information system, Assignment Help, Ask Question on Accounting as an information system, Get Answer, Expert's Help, Accounting as an information system Discussions

Write discussion on Accounting as an information system
Your posts are moderated
Related Questions
The Company changed its process of accounting for pre-opening costs. These changes had no cash impact and the pro forma amounts accessible in the consolidated statement of income r

A bauxite mine was acquired at a cost of $1,500,000 and estimated to contain 6,000,000 tons of ore. During the year, 95,000 tons were mined and sold. Prepare the journal entry fo

Q. Financial statements of business organizations? Business entities may perhaps have many objectives and goals. For instance one of your objectives in owning a physical fitnes

Determine the symbols of Net Sales for the Period -    Cost of Goods Sold =    Gross Profit -    Operating Expenses +    Other Income -      Other Expenses =

A(n) _______ loss occurs when the reduced price is below the actual cost. A. net B. operating C. absolute D. incurred

What does a business owner do when the cash balance approaches zero and there are bills to be paid? (Hint: look at the financing activities of the Cash Flow Statement and then lo

Determine the types of Credit card sales Bank Credit Card Sales - Most retail businesses accept bank credit cards. Treated as a CASH sale. Recording Bank Credit Card Sale

Problem It is usually recognized that power is an essential component of accountability and that greater accountability is recognized towards those stakeholders who have more p

what is Prepaid expense ?

The ratio of __________ to __________ is an example of a __________ ratio. A. quick assets; current liabilities; leverage B. cost of goods sold; total assets; asset utilization