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UNIVERSITY OF CALOOCAN CITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

Definition of terms

To have a deeper understanding on this study, the following terms were

theoretically and operationally defined.

Accounting Information System. The collection, storage and processing of

financial and accounting data used by internal users to report information to

investors, creditors and tax authorities. (Jake Frankenfield, 2018)

Computerized Accounting System. Consists of software designed to track

all of your company's accounting transactions, with the goal of producing

financial output for monthly reports, annual financial statements, tax return

information and other report configurations used to analyze your company’s

operations, efficiency and profitability. (Cynthia Gaffney, 2018)

Diffusion of Innovation. A theory that seeks to explain how, why, and at what

rate new ideas and technology spread. (Everett Rogers, 1962)

Double Entry. A fundamental concept underlying present-day bookkeeping

and accounting, states that every financial transaction has equal and opposite

effects in at least two different accounts. (Investopedia, 2019)

Effectiveness. The capability of producing a desired result or the ability to

produce desired output. When something is deemed effective, it means it has

an intended or expected outcome, or produces a deep, vivid impression.

(Wikipedia, 2019)

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UNIVERSITY OF CALOOCAN CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY

Financial Reports. Set of documents prepared usually by government

agencies at the end of an accounting period. It generally contains summary of

accounting data for that period, with background notes, forms, and other

information. (BusinessDictionary, 2018)

Financial Statements. Records that convey the business activities and the

financial performance of a company. Financial statements include the balance

sheet, income statement, and cash flow statement. (Investopedia, 2019)

Investment. A monetary asset purchased with the idea that the asset will

provide income in the future or will later be sold at a higher price for a profit.

(Investopedia, 2018)

Manual Accounting System. A bookkeeping system where records are

maintained by hand, without using a computer system. Instead, transactions

are written in journals, from which the information is manually rolled up into a

set of financial statements. (Accounting Tools, 2018)

Posting. The balances in sub-ledgers and the general journal are shifted into

the general ledger. (Accounting Tools, 2017)

Recording. Basic phase of accounting that is also known as bookkeeping. In

this phase, all financial transactions are recorded in a systematically and

chronologically manner in the appropriate books or databases. (Chris Newton,

2019)

Summarizing. Involves summarizing the data after each accounting period,

such as a month, quarter or year. The data must be presented in a manner

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UNIVERSITY OF CALOOCAN CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY

which is easy to understand and use by both external and internal users of the

accounting statements. Graphs and other visual elements are often used to

complement the text data. (Chris Newton, 2019)

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