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

Prepared by<br /> Coby Harmon<br /> University of California, Santa Barbara<br /> Westmont College<br /> <br /> 7-1<br /> <br /> 7<br /> <br /> Accounting Information<br /> Systems<br /> <br /> Learning Objectives<br /> After studying this chapter, you should be able to:<br /> [1] Identify the basic concepts of an accounting information system.<br /> [2] Describe the nature and purpose of a subsidiary ledger.<br /> [3] Explain how companies use special journals in journalizing.<br /> <br /> 7-2<br /> <br /> Preview of Chapter 7<br /> <br /> Accounting Principles<br /> Eleventh Edition<br /> Weygandt Kimmel Kieso<br /> 7-3<br /> <br /> Basic Concepts of AIS<br /> Accounting information system (AIS) collects and<br /> processes transaction data and communicates financial<br /> information to decision makers.<br /> Includes:<br /> <br /> <br /> <br /> Documents that provide evidence of transactions.<br /> <br /> <br /> <br /> 7-4<br /> <br /> All steps in the accounting cycle.<br /> <br /> Manual or computerized accounting system.<br /> <br /> LO 1 Identify the basic concepts of an accounting information system.<br /> <br /> Basic Concepts of AIS<br /> Cost Effectiveness - Benefits<br /> must outweigh the costs.<br /> <br /> Illustration 7-1<br /> Principles of an efficient<br /> and effective AIS.<br /> <br /> Useful<br /> Output<br /> <br /> Flexibility - The system should<br /> be sufficiently flexible to meet<br /> the resulting changes in the<br /> demands made upon it.<br /> 7-5<br /> <br /> LO 1 Identify the basic concepts of an accounting information system.<br /> <br />