7-1
ACCOUNTING INFORMATION SYSTEMS
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Winston Kwok, Ph.D., CA
Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved
7-2
FUNDAMENTAL SYSTEM PRINCIPLES
Accounting
information
systems collect
and process data
from transactions
and events,
organize them in
useful reports,
and communicate
results to
decisions makers.
7-2
7-3
COMPONENTS OF ACCOUNTING SYSTEMS
Increasingly, source documents are
electronic files creating a “paperless”
system.
•Keyboards •Hardware
•Scanners •Software
•Modems •Professional Judgment
•Bar-Code Reader
7-4
COMPONENTS OF ACCOUNTING SYSTEMS
•Printer
•Monitor
•Projectors
•Web communications
•CD/DVD
•Hard Drive
•Tape
•Paper Document
7-3
7-5
SPECIAL JOURNALS IN ACCOUNTING
7-6
SUBSIDIARY LEDGERS
Controlling
Characteristic Subsidiary Ledger
Account
Amounts due Accounts Accounts Receivable
from customers Receivable Ledger
Amounts owed Accounts Accounts Payable
to creditors Payable Ledger
Subsidiary ledgers are a listing of individual
accounts with common characteristics.
7-4
7-7
ACCOUNTS RECEIVABLE LEDGER
After all items are posted, the balance in the accounts receivable controlling account is
equal to the sum of the balances in the accounts receivable subsidiary ledger.
7-8
SALES JOURNAL
Sales Journal
7-5
7-9
PROVING THE LEDGERS
A schedule of
accounts receivable
lists each customer
and the balance
owed.
The balance of the Accounts Receivable controlling
account in the general ledger should equal the accounts
in the accounts receivable subsidiary ledger.
7 - 10
SALES TAXES
Governmental agencies often
require sellers to collect sales
taxes from customers and to
periodically send these taxes
to the appropriate agency.
7-6
7 - 11
SALES RETURNS AND ALLOWANCES
If a company has few sales returns, they may
be recorded in the General Journal.
A company with many sales returns may use
a Sales Returns and Allowances Journal.
7 - 12
Cash Receipts Types
1. Cash from credit
customers
2. Cash from cash
sales
3. Cash from other
sources
Cash
Receipts
Journal
7-7
7 - 13
FOOTING, CROSSFOOTING, AND POSTING
7 - 14
Purchases
Journal
7-8
7 - 15
PROVING THE LEDGER
A schedule of
accounts payable
lists each supplier
and the balance
owed to them.
The balance of the Accounts Payable controlling
account in the general ledger should equal the
accounts in the accounts payable subsidiary ledger.
7 - 16
Cash
Disbursements
Journal
7-9
7 - 17
GENERAL JOURNAL TRANSACTIONS
Adjusting
Entries
Closing
Entries
Purchase
Returns &
Allowances
Sales
Returns &
Allowances
7 - 18
COMPUTER TECHNOLOGY IN ACCOUNTING
Off-the-Shelf Software Integrated Software
Familiar accounting Actions taken in one
programs such as part of the system
Peachtree® and automatically affect
QuickBooks® are related parts. For
designed to be user
instance, when a
friendly and menu
driven. credit sale is entered,
several parts of the
system are
automatically updated.
7-10
7 - 19
DATA PROCESSING IN ACCOUNTING
➢ Onlineprocessing enters and
processes data immediately.
➢ Batch processing accumulates
information for a period of time
and then processes all the data
at one time (daily, weekly, or
monthly).
7 - 20
COMPUTER NETWORKS IN ACCOUNTING
Server
Work Stations
Computer networks are links among computers
giving different users access to common
databases and programs.
7-11
7 - 21
ENTERPRISE RESOURCE
PLANNING SOFTWARE (ERP)
Programs that manage and integrate a
company’s vital operations.
7 - 22
SEGMENT RETURN ON ASSETS
A good AIS collects financial data for a
company’s various segments.
Companies Reporting Operations
by Segments
A segment is a part of a
company that is
separately identified by its
products, services, or
geographic market.
*Total exceeds 100% because companies can report more
than one segment.
7-12
7 - 23
SEGMENT RETURN ON ASSETS
Segment return Segment operating profit or income
on assets = Segment average assets
Nestlé’s best performing segment in terms of return on assets
is Zone Asia, Oceania, and Africa. This is especially
impressive considering this segment ranks second in terms of
the amount of assets.
7 - 24
END OF CHAPTER 7
