Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
Accounting information system is an important component of the organisation MIS in an organisation. It receives information and provides information to the other functional MIS. The following example illustrates the relationship and data interface between the various sub - components of MIS.
(i) Accounting Information System, Manufacture System and Human Resource Information System From the figure given below we can go through the relationship between the three information systems, viz manufacturing information system accounting information system and the human resource information system. The manufacturing departments receives the list of workers from the Human Resource (HR) department.
It sends the details of production achieved by the workers on the basis of which the HR department directs the finance and accounts (F&A) department to pay the wages. The details of the wages paid and statutory dues are also sent by the F&A departments to the production department also to the HR department to monitor the performance of workers.
The HR department communicates to the other departments about the good/bad performance on the basis of which decision on various operational matters may be taken.
(ii) AIS and Marketing Information System Consider the business process in the Marketing and Sales departments involving the following activities
(a) Inquiry
(b) Contact creation
(c) Entry of orders
(d) Dispatch of goods
(e) Billing to customers
The accounting sub-system transaction cycle include the processing of sales order, credit authorisation custody of the goods, inventory position, shipping information receivables etc, It also keeps a track of the customer accounts e.g. Aging Report which should be generated by the system.
(iii) AIS and Manufacturing Information System Business process in the production department may involve the following activities
(a) Preparation of plans and schedules
(b) Issue of material requisition forms and jobs cards
(c) Issue of inventory
(d) Issue of order for procurement of raw materials
(e) Handling of vendors invoices
(f) Payments to vendors
Hence, it can be said that a computerized accounting system is a sub component of the accounting information system which transforms the financial data into meaningful information and communicates the information to the decision - makers. The reports demanded may be routine or specific ones.and the other functional information system in an organisation.
State the relationship between information and decision.
List the distinctive advantages of a computer system over a manual system.
State the various essential features of an accounting report.
Draw block diagram showing the main components of a computer.
Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
‘An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives’. In the light of this statement, explain the relationship between information and decisions. Also explain the role of the Transaction Processing System in facilitating the decision-making process in business organisations.
Fill in the correct words :
1. The user oriented programmes designed and developed for performing certain specific tasks are called as ...........
2. Language syntax is checked by software called as ...........
3. The people who write programmes to implement the data processing system design are called as ...........
4. ........... is the brain of the computer.
5. ........... and ........... are two of the important requirements of an accounting report.
6. An example of responsibility report is ...........
What is Accounting Information System?
Name three components of a Transaction Processing System.
State the different elements of a computer system.
Name any two types of commonly used negotiable instruments.
Why is it necessary to record the adjusting entries in the preparation of final accounts?
State the meaning of incomplete records?
What is ‘Depreciation’?
Briefly state how the cash book is both journal and a ledger.
State the meaning of a trial balance?
State the four basic requirements of a database applications.
Define accounting.
Why is it necessary for accountants to assume that business entity will remain a going concern?
State the need for the preparation of bank reconciliation statement?
Name and explain different types of reserves in detail.
Select the Correct Answer:
A bank reconciliation statement is prepared by:
(a) Creditors (b) Bank
(c) Account holder in a bank (d) Debtors
The periodic total of purchases return journal is posted to :
(i) Purchase account
(ii) Profit and loss account
(iii) Purchase returns account
(iv) Furniture account
Fill in the Correct Words :
(a) Cash book is a ......... journal.
(b) In Journal proper, only......... discount is recorded.
(c) Return of goods purchased on credit to the suppliers will be entered in ...... Journal.
(d) Assets sold on credit are entered in .........
(e) Double column cash book records transaction relating to ......... and .........
(f) Total of the debit side of cash book is ......... than the credit side.
(g) Cash book does not record the ......... transactions.
(h) In double column cash book ......... transactions are also recorded.
(i) Credit balance shown by a bank column in cash book is .........
(j) The amount paid to the petty cashier at the beginning of a period is known as ......... amount.
(k) In purchase book goods purchased on ......... are recorded.
Total of these transactions is posted in purchase account :
(i) Purchase of furniture
(ii) Cash and credit purchase
(iii) Purchases return
(iv) Purchase of stationery
Complete the following work sheet:
(i) If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
(iii) Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii) The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept.
Describe the events recorded in accounting systems and the importance of source documents in those systems?
What practical difficulties are encountered by a trader due to incompleteness of accounting records?
Describe the informational needs of external users.
Explain the development and role of accounting.