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Assignment2 Giecelle Bsoa2b

An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions. The accounting cycle is an 8-step process that begins with identifying transactions, recording them, posting to ledgers, making adjustments, preparing financial statements, closing temporary accounts, and preparing a post-closing trial balance to close the books for the period.

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20 views

Assignment2 Giecelle Bsoa2b

An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions. The accounting cycle is an 8-step process that begins with identifying transactions, recording them, posting to ledgers, making adjustments, preparing financial statements, closing temporary accounts, and preparing a post-closing trial balance to close the books for the period.

Uploaded by

carlitolopez0122
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Giecelle C.

Sampollo

1.Explain accounting information system

•An accounting information system (AIS) is a system that collects, stores, processes,
and reports financial and accounting data for an organization. It integrates various
components such as databases, software applications, procedures, and controls to
manage financial transactions and produce financial statements. AIS helps businesses
track their financial activities, manage resources, ensure compliance with regulations,
and make informed decisions based on accurate and timely financial information.
2. Describe and paste a sample picture of the following Business Documents

• A. SALES INVOICE/PURCHASE INVOICE - The purchase invoice tracks a


company’s expenses and cash outflow. On the other hand, a sales invoice is issued by
the seller, and it shows when they expect the payment

• B. OFFICIAL RECEIPT -An official receipt is an accounting record documenting a


successful sale transaction, which means, this is issued after payment for goods or
services has been received by the seller from the buyer.
•C. CHECK- typically refers to reviewing various paperwork or records related to a
business. This can include financial statements, invoices, contracts, purchase orders,
employee records, and other relevant documents to ensure accuracy, compliance, and
completeness. It involves verifying information, detecting errors or discrepancies, and
ensuring that the documents adhere to organizational policies and legal requirements.

• D. CASH REGISTER SLIP- When you go into a shop and make a cash purchase you
will usually get a cash register / till slip in receipt for what you buy
• E. BANK DEPOSIT SLIP- A deposit slip is a small paper form that a bank customer
includes when depositing funds into a bank account. A deposit slip states the date, the
name of the depositor, the depositor's account number, and the amounts being
deposited

• F. BANK WITHDRAWAL SLIP- A withdrawal slip is a written request to the bank to


pay the account holder the specified sum. The funds are deducted from the specified
account number. A bank withdrawal slip, like a deposit slip, is a record of your banking
transaction. It makes it easier for the bank to keep track of your withdrawals.

• G. STATEMENT OF ACCOUNT – A statement of accounts is a document that reflects


all transactions that took place between you and a particular customer for a given period
of time. Generally business owners send statements of accounts to their customers to
let them know how much they owe for sales that took place on credit during that period.
• H. PROMISSORY NOTE – The promissory note is a legal document that is signed by
a borrower who promises to pay a debt in the form and manner as described in the
note. The note may include a personal guarantee, which is a promise by the borrower to
pay the lender
• I. CASH VOUCHER- A cash voucher is a document that serves as proof of a cash
transaction. It is typically used in accounting and bookkeeping to record and validate
cash payments made for various expenses, such as office supplies, utility bills, or other
miscellaneous expenses

• J. PETTY CASH VOUCHER - A petty cash voucher is a document that records the
expenses of an organization. Petty cash funds are small amounts for incidental
expenses like office supplies and employee reimbursements. It help track and
document expenses paid from the petty cash fund.
3. What is Accounting cycle?

• The accounting cycle is a collective process of identifying, analyzing, and recording


the accounting events of a company. It is a standard 8-step process that begins when a
transaction occurs and ends with its inclusion in the financial statements and the closing
of the books.

4. Enumerate and explain the step in Accounting cycle.

Step 1: Identify Transactions

The first step involves identifying and analyzing business transactions, which could
include sales, purchases, expenses, and other financial activities.

Step 2: Recording Transactions

Once transactions are identified, they are recorded in the appropriate journals such as
the general journal, sales journal, purchase journal, or cash disbursement journal.

Step 3: Posting to Ledger

After recording transactions in journals, the next step is to post the entries to the
general ledger. Each account has its own ledger page, where individual transactions
are summarized.

Step 4: Adjusting Entries

Adjusting entries are made at the end of the accounting period to ensure that all
revenues and expenses are recorded in the correct period. This includes entries for
accruals, deferrals, depreciation, and other adjustments.

Step 5: Preparing Trial Balance

A trial balance is prepared to ensure that debits equal credits after posting all
transactions to the ledger. It helps in identifying errors and ensuring accuracy before
preparing financial statements.

Step 6: Preparing Financial Statements

Based on the adjusted trial balance, financial statements such as the income
statement, balance sheet, and statement of cash flows are prepared to provide an
overview of the company's financial performance and position.
Step 7: Closing Entries

Closing entries are made to transfer the balances of temporary accounts (revenue,
expense, and dividend accounts) to the retained earnings account in order to prepare
the accounts for the next accounting period.

Step 8: Post-Closing Trial Balance

After closing entries are made, a post-closing trial balance is prepared to ensure that
all temporary accounts have been closed and only permanent accounts remain open.

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