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ACCOUNTING INFORMATION SYSTEM

AIS

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4 views4 pages

ACCOUNTING INFORMATION SYSTEM

AIS

Uploaded by

wellacerden
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACCOUNTING INFORMATION SYSTEM

1. What is Accounting Information System?

An accounting information system (AIS) is a system that collects, processes, stores, and
communicates financial and non-financial information to users for decision-making. It is a combination
of hardware, software, people, and procedures that work together to capture and report accounting
data.
Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

2. What are the functions of accounting system?

The functions of an accounting system include:

* Collecting data: Gathering financial and non-financial information from various sources, such as sales
records, purchase orders, and employee time cards.

* Processing data: Classifying, summarizing, and analyzing data to produce meaningful information.

* Storing data: Maintaining a secure and accessible database of financial and non-financial information.

* Communicating data: Providing information to users in a clear and timely manner through reports,
financial statements, and other outputs.
Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

3. What are the components of accounting system?

The components of an accounting system include:

* Hardware: Computers, servers, printers, and other physical devices used to collect, process, store, and
communicate data.

* Software: Accounting software, database management systems, and other programs used to manage
the AIS.
* People: Accountants, bookkeepers, data entry clerks, and other personnel who use the AIS.

* Procedures: The rules, policies, and guidelines that govern the operation of the AIS.
Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

4. Characteristics of accounting system.

The characteristics of an accounting system include:

* Reliability: The AIS should produce accurate and reliable information.

* Efficiency: The AIS should operate efficiently and effectively.

* Security: The AIS should be protected from unauthorized access and data loss.

* Flexibility: The AIS should be able to adapt to changes in the business environment.

* User-friendliness: The AIS should be easy to use by people with varying levels of technical expertise.
Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

5. Advantage and Disadvantage of Accounting system.

Advantages:

* Improved decision-making: An AIS provides timely and accurate information that can be used to make
informed decisions.

* Increased efficiency: An AIS can automate many accounting tasks, freeing up time for more strategic
activities.

* Reduced costs: An AIS can help to reduce costs by eliminating errors and improving efficiency.

* Enhanced control: An AIS can help to improve control over financial resources.

* Improved compliance: An AIS can help to ensure compliance with accounting standards and
regulations.

Disadvantages:

* High cost: Implementing and maintaining an AIS can be expensive.


* Complexity: An AIS can be complex and difficult to understand.

* Security risks: An AIS is vulnerable to security threats, such as hacking and data loss.

* Dependency on technology: An AIS is dependent on technology, which can break down or become
obsolete.
Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

6. Differentiate computerize accounting from manual accounting.

Computerized accounting:

* Uses computers and software to record, process, and store accounting data.

* Is more efficient and accurate than manual accounting.

* Provides real-time information and analysis.

* Is more scalable and flexible than manual accounting.

Manual accounting:

* Uses manual methods, such as pen and paper, to record, process, and store accounting data.

* Is more time-consuming and error-prone than computerized accounting.

* Provides delayed information and analysis.

* Is less scalable and flexible than computerized accounting.


Sources:
* Accounting Information Systems by Romney and Steinbart
* Accounting Principles by Weygandt, Kimmel, and Kieso

7. Identify the top 10 accounting system in the world.

There are many different accounting systems available, and the "best" system for a particular
business will depend on its specific needs and requirements. However, some of the top-rated
accounting systems include:

* QuickBooks

* Xero
* Sage Intacct

* NetSuite

* SAP Business One

* Microsoft Dynamics 365 Finance & Operations

* Oracle NetSuite

* Zoho Books

* FreshBooks

* Wave Accounting
Sources:
* G2 Crowd
* Capterra
* Accounting software review websites

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