Kategoriak: All - bookkeeping - controls - statements - accounting

arabera Matt Quante 10 years ago

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Chapter 2 Notes

The process of transaction processing in an Accounting Information System (AIS) involves various stages and critical human judgments. Bookkeeping is a fundamental aspect of accounting, where transactions are identified, measured, and communicated to facilitate informed decisions.

Chapter 2 Notes

Transaction Processing in the AIS

Human judgement

IT
assist in posting and utilizing human judgement
essential in accounting cycle
design source documents
make estimates
recognize transaction and record them correctly

internal controls

transaction liimits
numbering of source documents
IT controls
audits
authorization and permissions

Accounting cycle

End of the year
closing entries

items on income statement; nominal accounts

balances to retained earnings

Adjusting entries

estimates

depreciation and bad debt

deferrals

cash first service second

accurals

service first cash second

adjusting entries, adjusted trial balance, financial statements, closing entries and post closing trial balance
prepare financial statements
Record transactions in the AIS
measure dollar amounts
Identify recordable transactions
throughout fiscal year
Obtain, analyze, and record entries to post to ledger and prepare a trial balance

Coding Systems

mnemonic
memory aid; texting language or short hand.
hierarchical
related to block encoding, but with more numbers; more complex
block
charts of accounts; 1=current assets, 2=long term assets, etc
sequencial
checks, invoices purchase orders
numbers in order

Financial statements

cash flows
cash only; period of time
changes in equity
income statement
period of time
balance sheet
point in time

Accounting and bookkeeping

Bookkeeping
part of accounting
Identifying and measuring
Accounting
Informed Judgements and Decisions
Identifying, measuring and communicating