AIS

Designing source
documents

Recognizing recordable
transactions

Estimating amounts and
interpreting accounting rules

Cut down steps in the
accounting cycle

Transactions can post automatically
or with the touch of a button

Can generate reports with
the touch of a button aswell

including financial statement

Account normaly have both
a name and a number to identify

maintain a clear, logical
chart of accounts

Common coding systems

Sequential coding

Block coding

Hierarchical codes

Mnemonic codes

Analysis

identify the accounts

Identify the effect
on the account

Which financial statement
does each account effect

determine if its a debit
or dredit entry

verify, debits equal
the credits

Journals

Recorded chronological
list of the transactions

post to the ledger to
the right accounts

Trial balance

organinzes the balances
from the general ledger

to show if the debits and credits
a equal in the ledger

Not always error prof

Adjusting entries

are done to account for timing
differences in the flow of cash

After journalized and posted,
prepare an adjusted trial balance

General-purpose
financial statements

Income Statment

reports revenues, expenses,
gains, and losses

accrual basis for a
specified period of time

Statement of changes
in schareholders' equity

reports changes in capital stock
and retained earnings accounts

Balance sheet

finacial psition of an
organization
at a specific point

assets, liabilities, and equity

Statement of cash flow

reports inflows and outflows
of cash for a specified period

Readied for the next
fiscal period's entries

Closing entries

Temporary accounts are
transferred into retained
earnings