Chapter 7, Problem 1DQ

What are five basic components of an accounting system?

To determine

The five basic components of an accounting system.

Explanation of Solution

Introduction:

Accounting information systems:

Accounting information systems collects data from different events and associated transactions across the organization and combine them to provide meaningful information in the form of reports. These reports are utilized by the decision makers to make important business decisions.

The five basic components of an accounting system:

The basic components of an accounting system are:

• Source documents containing the information about the business transactions.
• Input devices for the system.
• Information processors which process the given information to conceivable output.
• Information storage for storing relevant information.
• Output devices that provide meaningful output for the given information.