Define an accounting system, Accounting Basics

Assignment Help:

Q. Define an accounting system?

Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to bridge the space between technology and business. With the increase of integrated accounting and information systems technical expertise will go hand in hand with general business knowledge. Since we show in Exhibit 25 an accounting system is a set of records and the procedures and equipment used to perform the accounting functions. Manual systems consist of ledgers and journals on paper. Computerized accounting systems consist of computer files, accounting software, computers and related peripheral equipment such as printers.

Anyway of the system the functions of accountants include (a) identifying, observing and measuring economic events (b) recording, classifying and summarizing measurements and (c) reporting economic events and interpreting financial statements. Both external and internal users tell accountants their information needs. The accounting system allows a company's accounting staff to supply relevant accounting information to meet those needs. As external and internal users make decisions that become economic events the cycle of decisions, information and economic events begins again.

The primary focus of the first four chapters has been on how you are able to use an accounting system to prepare financial statements. But we as well discussed how to use that information in making decisions. Later chapters as well show how to prepare information and how that information helps users to make informed decisions. We haven't eliminated the preparation aspects because we believe that the most informed users are ones who as well understand how the information was prepared. These users understand not merely the limitations of the information but also its relevance for decision making.


Related Discussions:- Define an accounting system

T Accounts, Provided services on credit to Yamato P/L $5 900. How do we ap...

Provided services on credit to Yamato P/L $5 900. How do we apply this in the t accounts

Dividing partnership income, Dividing Partnership Income Desmond Drury ...

Dividing Partnership Income Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $44,700 and that Wilkins is to invest $1

Explain about long-term assets, Q. Explain about Long-term assets? Long...

Q. Explain about Long-term assets? Long-term assets are assets that a business has on hand or else uses for a relatively long time. Examples include plant, property and equipme

In 2011 hardin company had 220000 shares $10, in 2011 hardin company had 22...

in 2011 hardin company had 220000 shares $10 par common stock, march 1 issued 45000 shares at $22, June 1 issued 15% stack dividend, July 1 issued 10000 at $27, Aug 31 2-for-1 st

On december 31, On December 31, 2013, University Theatres issued $500,000 f...

On December 31, 2013, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature

At the end of the current year, At the end of the current year, $19,900 of ...

At the end of the current year, $19,900 of fees have been earned but not billed to clients. a. What is the adjustment to record the accrued fees? Indicate each account affect

Cost accounting, DEFINITION OF COST ACCOUNTING DEFINITION:  as said by ...

DEFINITION OF COST ACCOUNTING DEFINITION:  as said by the Institute of Cost and Works Accountants (ICWA), London, Cost accounting is " the method of accounting for costs from t

the relevant authoritative literature, Determining the physical quantity t...

Determining the physical quantity that should be contained in inventory normally is a simple matter because that amount have of items in the possession of the company. The cost of

Accounting , Jim owns and manages a small business, which provides an offic...

Jim owns and manages a small business, which provides an office design service, as well as buying and selling office furniture. Jim is a sole trader who manages all aspects of the

TURNOVER, WHAT IS THE MEANING OF INVENTORY TURNOVER

WHAT IS THE MEANING OF INVENTORY TURNOVER

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd