An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions.
The accounting cycle is an 8-step process that begins with identifying transactions, recording them in journals, posting to ledgers, making adjustments, preparing a trial balance, financial statements, closing temporary accounts, and a post-closing trial balance. This ensures accurate tracking of financial activities and reporting of the business's performance and position.
An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions.
The accounting cycle is an 8-step process that begins with identifying transactions, recording them in journals, posting to ledgers, making adjustments, preparing a trial balance, financial statements, closing temporary accounts, and a post-closing trial balance. This ensures accurate tracking of financial activities and reporting of the business's performance and position.
An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions.
The accounting cycle is an 8-step process that begins with identifying transactions, recording them in journals, posting to ledgers, making adjustments, preparing a trial balance, financial statements, closing temporary accounts, and a post-closing trial balance. This ensures accurate tracking of financial activities and reporting of the business's performance and position.
An accounting information system (AIS) collects, stores, processes, and reports financial data to manage transactions and produce financial statements. It helps businesses track finances, manage resources, ensure compliance, and make informed decisions.
The accounting cycle is an 8-step process that begins with identifying transactions, recording them in journals, posting to ledgers, making adjustments, preparing a trial balance, financial statements, closing temporary accounts, and a post-closing trial balance. This ensures accurate tracking of financial activities and reporting of the business's performance and position.
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Jenna R.
Culajara 1. Explain accounting information system
• An accounting information system (AIS) is a system that collects, stores, processes, and reports financial and accounting data for an organization. It integrates various components such as databases, software applications, procedures, and controls to manage financial transactions and produce financial statements. AIS helps businesses track their financial activities, manage resources, ensure compliance with regulations, and make informed decisions based on accurate and timely financial information. 2. Describe and paste a sample picture of the following Business Documents
• A. SALES INVOICE/PURCHASE INVOICE - The purchase invoice tracks a company’s
expenses and cash outflow. On the other hand, a sales invoice is issued by the seller, and it shows when they expect the payment
• B. OFFICIAL RECEIPT -An official receipt is an accounting record documenting a
successful sale transaction, which means, this is issued after payment for goods or services has been received by the seller from the buyer. • C. CHECK- typically refers to reviewing various paperwork or records related to a business. This can include financial statements, invoices, contracts, purchase orders, employee records, and other relevant documents to ensure accuracy, compliance, and completeness. It involves verifying information, detecting errors or discrepancies, and ensuring that the documents adhere to organizational policies and legal requirements.
• D. CASH REGISTER SLIP- When you go into a shop and make a cash purchase you will usually get a cash register / till slip in receipt for what you buy • E. BANK DEPOSIT SLIP- A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip states the date, the name of the depositor, the depositor's account number, and the amounts being deposited
• F. BANK WITHDRAWAL SLIP- A withdrawal slip is a written request to the bank to pay the account holder the specified sum. The funds are deducted from the specified account number. A bank withdrawal slip, like a deposit slip, is a record of your banking transaction. It makes it easier for the bank to keep track of your withdrawals.
• G. STATEMENT OF ACCOUNT – A statement of accounts is a document that reflects all
transactions that took place between you and a particular customer for a given period of time. Generally business owners send statements of accounts to their customers to let them know how much they owe for sales that took place on credit during that period. • H. PROMISSORY NOTE – The promissory note is a legal document that is signed by a borrower who promises to pay a debt in the form and manner as described in the note. The note may include a personal guarantee, which is a promise by the borrower to pay the lender • I. CASH VOUCHER- A cash voucher is a document that serves as proof of a cash transaction. It is typically used in accounting and bookkeeping to record and validate cash payments made for various expenses, such as office supplies, utility bills, or other miscellaneous expenses
• J. PETTY CASH VOUCHER - A petty cash voucher is a document that records the expenses of an organization. Petty cash funds are small amounts for incidental expenses like office supplies and employee reimbursements. It help track and document expenses paid from the petty cash fund. 3. What is Accounting cycle?
• The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. It is a standard 8-step process that begins when a transaction occurs and ends with its inclusion in the financial statements and the closing of the books. 4. Enumerate and explain the step in Accounting cycle.
Step 1: Identify Transactions
The first step involves identifying and analyzing business transactions, which could include sales, purchases, expenses, and other financial activities.
Step 2: Recording Transactions
Once transactions are identified, they are recorded in the appropriate journals such as the general journal, sales journal, purchase journal, or cash disbursement journal.
Step 3: Posting to Ledger
After recording transactions in journals, the next step is to post the entries to the general ledger. Each account has its own ledger page, where individual transactions are summarized.
Step 4: Adjusting Entries
Adjusting entries are made at the end of the accounting period to ensure that all revenues and expenses are recorded in the correct period. This includes entries for accruals, deferrals, depreciation, and other adjustments.
Step 5: Preparing Trial Balance
A trial balance is prepared to ensure that debits equal credits after posting all transactions to the ledger. It helps in identifying errors and ensuring accuracy before preparing financial statements.
Step 6: Preparing Financial Statements
Based on the adjusted trial balance, financial statements such as the income statement, balance sheet, and statement of cash flows are prepared to provide an overview of the company's financial performance and position. Step 7: Closing Entries
Closing entries are made to transfer the balances of temporary accounts (revenue, expense, and dividend accounts) to the retained earnings account in order to prepare the accounts for the next accounting period.
Step 8: Post-Closing Trial Balance
After closing entries are made, a post-closing trial balance is prepared to ensure that all temporary accounts have been closed and only permanent accounts remain open.
"The Language of Business: How Accounting Tells Your Story" "A Comprehensive Guide to Understanding, Interpreting, and Leveraging Financial Statements for Personal and Professional Success"
"The Language of Business: How Accounting Tells Your Story" "A Comprehensive Guide to Understanding, Interpreting, and Leveraging Financial Statements for Personal and Professional Success"
