Accounting information systems
People, records, methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers.
Accounts payable ledger
Subsidiary ledger listing individual creditor accounts.
Accounts recievable ledger
Subsidiary ledger listing individual customer accounts.
Batch processing
Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month.
Cash disbursements journal
Special journal normally used to record all payments of cash.
Cash receipts journal
Special journal normally used to record all receipts of cash.
Check register
Another name for cash disbursements journal when the journal has a column for check numbers.
Columnar journal
Journal with more than one column.
Compatability principle
Information system principle that prescribes an accounting system to conform with a company's activities, personnel, and structure.
Components of accounting systems
Five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.
Computer networks
Linkage giving different users and different computers access to common databases and programs.
Controlling account
General ledger account, the balance of which equals the sum of the balances in its related subsidiary ledger.
Control principle
Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities.
Cost-benefit principle
Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity.
Enterprise resource planning software (ERP)
Programs that manage a company's vital operations, which range from order taking to production to accounting.
Flexibility principle
Information system principle that prescribes an accounting system ba able to adapt to changes in the company, its operations, and needs of decision makers.
General journal
All-purpose journal for recording the debits and credits of transactions and events.
Information processors
Component of an accounting system that interprets, transforms, and summarizes information for use in analysis and reporting.
Information storage
Component of an accounting system that keeps data in a form of accessible to information processors.
Input devices
Means of capturing information from source documents that enables its transfer to information processors.
Internal controls
All policies and procedures used to protect assets, ensure reliable accounting, promote efficieant operations, and urge adherence to company policies.
Online processing
Apporach to inputting data from source documents as soon as the information is available.
Output devices
Means by which information is taken out of the accounting system and made available for use.
Purchases journal
Journal normally used to record all purchases on credit.
Relevance principle
Information system principle prescribing that its reports be useful, understandable, timely, and pertinent for decision making.
Sales journal
Journal normally used to record sales of goods on credit.
Schedule of accounts payable
List of the balances of all accounts in the accounts payable ledger and their total.
Schedule of accounts recievable
List of all balances for all accounts in the accounts recievable ledger and their total.
Segment return on assets
Segment operating income divided by segment average assets for the period.
Special journal
Any journal used for recording and posting transactions of a similar type.
Subsidiary ledger
List of individual sub-accounts and amounts with a common characteristic.