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ACCT110 Ch 7
Accounting Information Systems
| Term | Definition |
|---|---|
| Accounting information systems | People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers. |
| Accounts payable ledger | Subsidiary ledger listing individual creditor(supplier) accounts. |
| Accounts receivable ledger | Subsidiary ledger listing individual customer accounts. |
| Batch processing | Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month. |
| Cash disbursements journal | Special journal normally used to record all payments of cash; also called cash payments journal. |
| Cash receipts journal | Special journal normally used to record all receipts of cash. |
| Check register | Another name for a cash disbursements journal when the journal has a column for check numbers. |
| Columnar journal | Journal with more than one column. |
| Compatibility principle | Information system principle that prescribes an accounting system to conform with a company’s activities, personnel, and structure. |
| Components of accounting systems | Five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices. |
| Computer network | Linkage giving different users and different computers access to common databases and programs. |
| Control principle | Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities. |
| Controlling account | General ledger account, the balance of which (after posting) equals the sum of the balances in its related subsidiary ledger. |
| Cost-benefit principle | General ledger account, the balance of which (after posting) equals the sum of the balances in its related subsidiary ledger. |
| Enterprise resource planning (ERP) software | Programs that manage a company’s vital operations, which range from order taking to production to accounting. |
| Flexibility principle | Information system principle that prescribes an accounting system be able to adapt to changes in the company, its operations, and needs of decision makers. |
| General journal | All-purpose journal for recording the debits and credits of transactions and events. |
| Information processor | Component of an accounting system that interprets, transforms, and summarizes information for use in analysis and reporting. |
| Information storage | Component of an accounting system that keeps data in a form accessible to information processors. |
| Input device | Means of capturing information from source documents that enables its transfer to information processors. |
| Internal controls | All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. |
| Online processing | Approach to inputting data from source documents as soon as the information is available. |
| Output devices | Means by which information is taken out of the accounting system and made available for use. |
| Purchases journal | Journal normally used to record all purchases on credit. |
| Relevance principle | Information system principle prescribing that its reports be useful, understandable, timely, and pertinent for decision making. |
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