Computerised Accounting

Question 0

ICT types and Applications

Answer 0

Software used in small businesses includes:

• general applications (such as spreadsheets, databases etc)
• applications created specifically for accounting purposes, such as computerised accounting systems

Question 1

Computerised accounting systems

Answer 1

A computerised accounting system involves the use of computer hardware and software to perform the recording and reporting functions that would otherwise have been done manually

Question 2

Accounting packages

Answer 2

Dedicated accounting purposes, incorporating a version of the accounting process.
Once the data is entered, the accounting records are updated automatically, and reports can be generated easily

Question 3

Chart of Accounts

Answer 3

The chart of accounts is an index to the ledger that identifies and classifies each individual ledger account using an account number or code

Question 4

Benefits of chart of accounts

Answer 4

• allows accounts to be located easily by reference to their number
• it enables staff without accounting knowledge to enter transactions accurately
• reports can be prepared more easily, as each account is classified as an expense, revenue, CA, NCA, CL, NCL or OE so you know which report the account goes in

Question 5

Costs in Chart of Accounts

Answer 5

• hardware/software
• staff/owner training takes time and money
• the time needed to establish the system