PowerPoint Authors:

Susan Coomer Galbreath, Ph.D., CPA

Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Winston Kwok, Ph.D., CPA
McGraw-Hill/I rwin Copyright 2011 by The McGraw-Hill Companies, I nc. All rights reserved.
Chapter 7
ACCOUNTING INFORMATION SYSTEMS
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FUNDAMENTAL SYSTEM PRINCIPLES
C1
Accounting
information
systems collect
and process data
from transactions
and events,
organize them in
useful reports,
and communicate
results to
decisions makers.
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COMPONENTS OF ACCOUNTING SYSTEMS
C1
Keyboards
Scanners
Modems
Bar-Code Reader
Hardware
Software
Professional Judgment
Increasingly, source documents are
electronic files creating a paperless
system.
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COMPONENTS OF ACCOUNTING SYSTEMS
C1
CD/DVD
Hard Drive
Tape
Paper Document
Printer
Monitor
Projectors
Web communications
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SPECIAL JOURNALS IN ACCOUNTING
C2
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SUBSIDIARY LEDGERS
Subsidiary ledgers are a listing of individual
accounts with common characteristics.
Characteristic
Controlling
Account
Subsidiary Ledger
Amounts due
from customers
Accounts
Receivable
Accounts Receivable
Ledger
Amounts owed
to creditors
Accounts
Payable
Accounts Payable
Ledger
C3
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ACCOUNTS RECEIVABLE LEDGER
After all items are posted, the balance in the accounts receivable controlling account is
equal to the sum of the balances in the accounts receivable subsidiary ledger.
C3
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SALES JOURNAL
P1
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PROVING THE LEDGERS
P2
The balance of the Accounts Receivable controlling
account in the general ledger should equal the accounts
in the accounts receivable subsidiary ledger.
A schedule of
accounts receivable
lists each customer
and the balance
owed.
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SALES TAXES
P1
Governmental agencies often
require sellers to collect sales
taxes from customers and to
periodically send these taxes
to the appropriate agency.
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SALES RETURNS AND ALLOWANCES
If a company has few sales returns, they may
be recorded in the General Journal.
A company with many sales returns may use
a Sales Returns and Allowances Journal.
P1
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P1
Cash Receipts Types
1. Cash from credit
customers
2. Cash from cash
sales
3. Cash from other
sources
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FOOTING, CROSSFOOTING, AND POSTING
P1

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P1
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PROVING THE LEDGER
P2
The balance of the Accounts Payable controlling
account in the general ledger should equal the
accounts in the accounts payable subsidiary ledger.
A schedule of
accounts payable
lists each supplier
and the balance
owed to them.
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P1
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GENERAL JOURNAL TRANSACTIONS
Adjusting
Entries
Purchase
Returns &
Allowances
Closing
Entries
P1
Sales
Returns &
Allowances
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COMPUTER TECHNOLOGY IN ACCOUNTING
Off-the-Shelf Software
Familiar accounting
programs such as
Peachtree and
QuickBooks are
designed to be user
friendly and menu
driven.
Integrated Software
Actions taken in one
part of the system
automatically affect
related parts. For
instance, when a
credit sale is entered,
several parts of the
system are
automatically updated.
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DATA PROCESSING IN ACCOUNTING
Online processing enters and
processes data immediately.

Batch processing accumulates
information for a period of time
and then processes all the data
at one time (daily, weekly, or
monthly).
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COMPUTER NETWORKS IN ACCOUNTING
Computer networks are links among computers
giving different users access to common
databases and programs.
Server
Work Stations
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ENTERPRISE RESOURCE
PLANNING SOFTWARE (ERP)
Programs that manage and integrate a
companys vital operations.
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A good AIS collects financial data for a
companys various segments.
SEGMENT RETURN ON ASSETS
A segment is a part of a
company that is
separately identified by its
products, services, or
geographic market.
A1
Companies Reporting Operations
by Segments
*Total exceeds 100% because companies can report more
than one segment.
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SEGMENT RETURN ON ASSETS
A1
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APPENDIX 7A: SPECIAL JOURNALS
UNDER A PERIODIC SYSTEM
P3
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APPENDIX 7A: SPECIAL JOURNALS
UNDER A PERIODIC SYSTEM
P3
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END OF CHAPTER 7