Lecture Accounting principles (11E): Chapter 7 - Coby Harmon

After completing this chapter you should be able to: Identify the basic concepts of an accounting information system, describe the nature and purpose of a subsidiary ledger, explain how companies use special journals in journalizing.
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Lecture Accounting principles (11E): Chapter 7 - Coby HarmonPrepared byCoby HarmonUniversity of California, Santa BarbaraWestmont College7-17Accounting InformationSystemsLearning ObjectivesAfter studying this chapter, you should be able to:[1] Identify the basic concepts of an accounting information system.[2] Describe the nature and purpose of a subsidiary ledger.[3] Explain how companies use special journals in journalizing.7-2Preview of Chapter 7Accounting PrinciplesEleventh EditionWeygandt Kimmel Kieso7-3Basic Concepts of AISAccounting information system (AIS) collects andprocesses transaction data and communicates financialinformation to decision makers.Includes:Documents that provide evidence of transactions.7-4All steps in the accounting cycle.Manual or computerized accounting system.LO 1 Identify the basic concepts of an accounting information system.Basic Concepts of AISCost Effectiveness - Benefitsmust outweigh the costs.Illustration 7-1Principles of an efficientand effective AIS.UsefulOutputFlexibility - The system shouldbe sufficiently flexible to meetthe resulting changes in thedemands made upon it.7-5LO 1 Identify the basic concepts of an accounting information system.