Chapter 2 - Transaction processing in the AIS. When you''ve finished studying this chapter, and completing the activities at its conclusion, you should be able to: Differentiate accounting and bookkeeping; list, discuss and complete, in order, the steps in the accounting cycle; identify common internal controls associated with the accounting cycle; describe common coding systems and how they are used in the AIS; explain how human judgment and information technology affect the accounting cycle.
Trang 1Chapter 2 Transaction Processing
in the AIS
Trang 2Outline
technology
Trang 3Learning objectives
bookkeeping.
steps in the accounting cycle.
associated with the accounting cycle.
how they are used in the AIS.
information technology affect the
accounting cycle.
Trang 4Accounting and bookkeeping
Accounting is the
process of identifying,
measuring, and
communicating
economic information
to permit informed
judgments and
decisions by users of
the information
The part of accounting associated with identifying and measuring economic information
Trang 5Accounting and bookkeeping
• Identifying
Recognizing events
that give rise to
journal entries vs
those that do not
such as supplies
such as long-term bonds payable
as certain investments in marketable
securities
value, such as accounts
receivable
Trang 6Accounting cycle
gather data,
process it and
create general
purpose financial
statements
throughout the fiscal year
the end of the fiscal year
Trang 7Accounting cycle
throughout the
fiscal year
about external transactions from source
documents
transactions
transactions in a journal
journal to the general ledger accounts
unadjusted trial balance
Trang 8Accounting cycle
the end of the
fiscal year
journal entries and post to the ledger accounts
adjusted trial balance
statements
temporary accounts to retained earnings
post-closing trial balance
Some organizations prepare adjusting entries multiple times throughout the year, such as at the end of each quarter.
Trang 9Internal controls
& procedures
designed to:
financial reporting
efficiency
compliance with
management
directives
controls
documents sequentially
transaction limits
ledger / other appropriate software for transaction processing
Trang 10Coding systems
identifying source
documents for
easier reference
later
Trang 11Coding systems
numbered in
sequence
in your checkbook
a group
chart of accounts
101 Cash
103 Accounts receivable
201 Equipment
301 Accounts payable
305 Wages payable
401 Bonds payable
501 Capital stock
505 Retained earnings
Trang 12Coding systems
have meaning
complex chart of accounts
of its meaning
accounting certifications
03 514 101
geographic
location
department
account number
• CPA, Certified Public Accountant
• CFE, Certified Fraud Examiner
• EA, Enrolled Agent
• CMA, Certified Management Accountant
Trang 13Human judgment & information
technology
in accounting
information
systems
technology is not
the system; it is a
tool used in the
system.
Determining which events lead to journal entries
technology
Spreadsheets, relational databases, general ledger
software, ERP systems
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