Chap 10 - Accounting Information Systems and Business Processes: Part I Flashcards
What are the 8 steps in the accounting system?
- Record transaction in a journal.
- Post journal entries to a ledger.
- Prepare an unadjusted trial balance.
- Record and post adjusting entries.
- Prepare an adjusted trial balance.
- Prepare financial statements.
- Record and post closing journal entries.
- Prepare a post-closing trial balance.
What is a specialized journal?
Sales, Cash Receipts, Purchases, Cash Disbursements are examples. Include entries for all but a few transactions such as depreciation.
What is a subsidiary ledger?
Sub ledger of the general ledger. A/R > different companies that have an account with the company. A/P > different companies the company has an account with.
What is an alphanumeric code?
codes that use numbers and letters to record accounting transactions
i.e. instead of posting the the Materials Inventory acct you would post to the 123456 acct
AIS systems use block codes. What are they?
Current assets would be 101, 102, 103, 104 Current liablities would be 401, 402, 403, 404
What are the two common business processes?
Sales and purchasing
What does the sales process begin and end with?
Begins with a customer order and ends with the collection of cash from customer.
What are important source documents for the sales process?
Customer order sales invoices remittance advices shipping notices customer checks
What are primary outputs of the sales process?
reports such as cash receipt report, bad debt report, customer listing report
What are some objectives of the purchasing process?
Tracking purchases of goods and/or services from vendors
Tracking amounts owed
Maintaining vendor records
Controlling inventory
Making timely and accurate vendor payments
Forecasting purchases and cash outflows
What are some objectives of the sales process?
Tracking sales of goods and/or services to customers
Filling customer orders
Maintaining customer records
Billing for goods and services
Collecting payment for goods and services
Forecasting sales and cash receipts
What are primary source (inputs) documents for the purchasing process?
purchase requisitions purchase orders receiving reports purchase invoices bill of lading
What are some outputs for the purchasing process?
Financial statement information, vendor checks, check register, discrepancy reports, cash requirements forecast, sales analysis reports
Flowchart symbols
.
What is BPO?
Business Process Outsourcing. Companies cutting cost by outsourcing their processes to other countries.
