Heagy PPTs c3
Chapter 3
Essential Elements and Basic Activities of
Accounting Systems
Learning Objectives
Discuss the significant similarities between paperbased accounting systems and computerized accounting systems.
Identify the essential elements of a paper-based accounting system.
Understand the basic activities of a paper-based accounting system.
Learning Objectives (cont.)
Identify the essential elements of a computerized accounting system.
Understand the basic activities of a computerized accounting system.
Compare batch posting in a computerized accounting system to real-time posting.
Why Review Paper-based
Accounting Systems?
Paper-based Accounting Systems:
- Provide a simple and familiar context in which to understand the issues of computerized accounting system. Similarities Between Paper-based and
Computerized Accounting Systems
Essential elements:
- Where data are captured, recorded, processed, stored, and reported?
Basic activities:
- How data are captured, recorded, processed, stored, and reported in the essential elements?
Paper-Based Accounting Systems
Essential Elements:
-
Source documents
Accounts
Chart of accounts
Journals (special and general)
Ledgers (subsidiary and general)
Outputs
Paper-Based Accounting Systems
(cont.)
Source Documents Samples:
-
Purchase order
Bill of lading
Cash receipts prelist
Time card
Paper-Based Accounting Systems
(cont.)
Accounts:
- Classifies monetary measurements of business activities of a similar nature
- Number varies with needs of the organization
Chart of Accounts:
- List of all account names and codes
Paper-Based Accounting Systems
(cont.)
Journals:
- Book of Original Entry
* Special
* General
Ledgers:
- Transaction data by account
* General
* Subsidiary
Paper-Based Accounting Systems
(cont.)
Accounting System Outputs Samples:
-
Sales order
Sales invoice
Schedule of aged accounts receivable
Receiving report
Paper-Based Accounting Systems
(cont.)
Essential Elements and Basic Activities of
Accounting Systems
Learning Objectives
Discuss the significant similarities between paperbased accounting systems and computerized accounting systems.
Identify the essential elements of a paper-based accounting system.
Understand the basic activities of a paper-based accounting system.
Learning Objectives (cont.)
Identify the essential elements of a computerized accounting system.
Understand the basic activities of a computerized accounting system.
Compare batch posting in a computerized accounting system to real-time posting.
Why Review Paper-based
Accounting Systems?
Paper-based Accounting Systems:
- Provide a simple and familiar context in which to understand the issues of computerized accounting system. Similarities Between Paper-based and
Computerized Accounting Systems
Essential elements:
- Where data are captured, recorded, processed, stored, and reported?
Basic activities:
- How data are captured, recorded, processed, stored, and reported in the essential elements?
Paper-Based Accounting Systems
Essential Elements:
-
Source documents
Accounts
Chart of accounts
Journals (special and general)
Ledgers (subsidiary and general)
Outputs
Paper-Based Accounting Systems
(cont.)
Source Documents Samples:
-
Purchase order
Bill of lading
Cash receipts prelist
Time card
Paper-Based Accounting Systems
(cont.)
Accounts:
- Classifies monetary measurements of business activities of a similar nature
- Number varies with needs of the organization
Chart of Accounts:
- List of all account names and codes
Paper-Based Accounting Systems
(cont.)
Journals:
- Book of Original Entry
* Special
* General
Ledgers:
- Transaction data by account
* General
* Subsidiary
Paper-Based Accounting Systems
(cont.)
Accounting System Outputs Samples:
-
Sales order
Sales invoice
Schedule of aged accounts receivable
Receiving report
Paper-Based Accounting Systems
(cont.)