(a)
To Explain: Accounting information system.
(a)
Answer to Problem 1Q
Accounting information system is the system which collects the accounting and transaction data and then communicates this financial information to the decision makers.
Explanation of Solution
Accounting information system is the system which provides information about the accounting that took place in the business. This information is provided so that the financial decision makers and end users are benefitted from this information. This includes providing the documents involved in the transactions, the records made, the
Accounting information system is the system which collects processes and then represents all the financial information to the decision makers of the financial statements.
(b)
To Explain: Application of accounting information system into a manual system.
(b)
Answer to Problem 1Q
Explanation of Solution
Accounting information system is the system which records and presents all the financial information to the users. This system applies to both manual and computerized system. As in the manual system, every transaction is recorded manually, this means a person records the transaction in the journal and the ledger book while in a computerized system the transactions are recorded in the given software package and many steps are done automatically. By the given software system the financial statements are generated automatically. In both cases, either manual or computerized the accounting information system is needed.
The accounting information system does not necessarily apply to the manual system; it also applies to the computerized system.
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Chapter 7 Solutions
Accounting Principles, Volume 1: Chapters 1 - 12
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