Accountancy Need of Computers in Accounting : The advent of globalisation has resulted in the rise in business operations. Consequently, every medium and large sized organisations require well-established information system in order to generate information required for decision-making and achieving the organisational objectives. This made information technology to play vital role in supporting business operations. MIS and Accounting Information System : A management information system provides information necessary to take decisions and manage an organisation effectively.
Accounting information system on the other hand identifies, collects, processes and communicates economic information about an entity to a wide variety of users. Accounting Reports : Information supplied to meet a particular need is called report. An accounting report must fulfil the following conditions : • Relevance • Timeliness • Accuracy • Completeness • Summarisation Questions for Practice Short Answers . State the different elements of a computer system.
. List the distinctive advantages of a computer system over a manual system. . Draw block diagram showing the main components of a computer.
. Give three examples of a transaction processing system. . State the relationship between information and decision.
. What is Accounting Information System? . State the various essential features of an accounting report.
. Name three components of a Transaction Processing System. . Give example of the relationship between a Human Resource Information System and MIS.
Long Answers . ‘An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives’. In the light of this statement, explain the relationship between information and decisions. Also explain the role of Transaction Processing System in facilitating the decision-making process in business organisations.
. Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS. .
‘An accounting report is essential a report which must be able to fulfil certain basic criteria ‘ Explain? List the various types of accounting reports. . Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
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