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Ch07 Presentation Transcript

  • 1. 7-1 Computerized Accounting Systems Financial Accounting Information for Decisions 6th edition Ingram and Albright 7 PowerPoint Presentation by Douglas Cloud Professor Emeritus of Accounting Pepperdine University © Copyright 2007 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star Logo, and South-Western are trademarks used herein under license. Task Force Image Gallery clip art included in Task Force Image Gallery clip art included in this electronic presentation is used with the this electronic presentation is used with the permission of NVTech Inc. permission of NVTech Inc.
  • 2. 7-2 Objectives Objectives Once you have completed Once you have completed this chapter, you should this chapter, you should be able to— be able to—
  • 3. 7-3 Objectives Objectives 1. Identify the primary components of a computerized accounting system. 2. Describe the components of a computerized accounting system used to process data and produce useful information. 3. Describe how data are processed in various modules of an accounting system. Continued Continued
  • 4. 7-4 Objectives Objectives 4. Explain the use of relational databases to perform accounting functions. 5. Describe how a database system can be used to create a simple accounting system.
  • 5. 7-5 Objective Objective 1 Identify the primary components of a computerized accounting system.
  • 6. 7-6 Components of a Computerized Components of a Computerized Accounting System Accounting System Systems that integrate most of the Systems that integrate most of the business information functions as a business information functions as a basis for management decisions are basis for management decisions are referred to as enterprise resource referred to as enterprise resource planning (ERP) systems. planning (ERP) systems.
  • 7. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-7
  • 8. 7-8 Components of a Computerized Components of a Computerized Accounting System Accounting System The sales module receives order data from customers and maintains accounts receivable information.
  • 9. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-9
  • 10. 7-10 Components of a Computerized Components of a Computerized Accounting System Accounting System The purchasing and inventory management module provides purchase order data to vendors. Vendors are those who supply Vendors are those who supply specific products to a company. specific products to a company.
  • 11. 7-11 Components of a Computerized Components of a Computerized Accounting System Accounting System The purchasing and inventory management module maintains accounts payable and inventory information.
  • 12. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-12
  • 13. 7-13 Components of a Computerized Components of a Computerized Accounting System Accounting System The human resources module maintains data about employees, including hours worked and wage rates. It is used for preparing payroll and It is used for preparing payroll and payroll tax information. payroll tax information.
  • 14. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-14
  • 15. 7-15 Components of a Computerized Components of a Computerized Accounting System Accounting System The production module tracks the flow of costs through the manufacturing process.
  • 16. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-16
  • 17. 7-17 Components of a Computerized Components of a Computerized Accounting System Accounting System The asset management module identifies long-term asset costs, their expected useful lives, and where these assets are located in the company.
  • 18. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-18
  • 19. 7-19 Components of a Computerized Components of a Computerized Accounting System Accounting System The financial management module keeps track of debt, repayment schedules, interest rates, and shareholder information.
  • 20. Exhibit 1 Exhibit 1 Components of an Accounting Information System 7-20
  • 21. 7-21 Components of a Computerized Components of a Computerized Accounting System Accounting System The general ledger/financial reporting module provides information for use by external stakeholders, including shareholders and government regulators.
  • 22. 7-22 Subsidiary Accounts Subsidiary Accounts Subsidiary accounts include Subsidiary accounts include transactions for individual customers, transactions for individual customers, suppliers, or products. Records for all suppliers, or products. Records for all subsidiary accounts of a particular type subsidiary accounts of a particular type are maintained in a subsidiary ledger. are maintained in a subsidiary ledger.
  • 23. 7-23 Subsidiary Accounts Subsidiary Accounts A subsidiary accounts receivable A subsidiary accounts receivable ledger would consist of all the ledger would consist of all the individual customers accounts, individual customers accounts, with data about purchases and with data about purchases and payments for each customer. payments for each customer.
  • 24. 7-24 Control Accounts Control Accounts Control accounts are summary accounts Control accounts are summary accounts that maintain totals for all subsidiary that maintain totals for all subsidiary accounts of a particular type. accounts of a particular type. Example: The balance for Accounts Example: The balance for Accounts Receivable control account is Receivable control account is the sum of the balances of all the sum of the balances of all customer accounts. customer accounts.
  • 25. 7-25 Control Accounts Control Accounts Records for each control Records for each control account are maintained in a account are maintained in a company’s general ledger. company’s general ledger.
  • 26. 7-26 Objective Objective 2 Describe the components of a computerized accounting system used to process data and produce useful information.
  • 27. 7-27 Exhibit 2 Exhibit 2 Data Processing in a Computerized Information System
  • 28. 7-28 Using computer Using computer networks, such as networks, such as the Internet, to the Internet, to make customer make customer sales is referred sales is referred to as E-business. to as E-business. Application Application software includes software includes the computer the computer program that program that permit data to be permit data to be recorded and recorded and processed. processed.
  • 29. 7-29 A database is a set A database is a set of computerized files of computerized files in which company in which company data are stored in the data are stored in the form that facilitates form that facilitates retrieval and retrieval and updating of the data. updating of the data. A database A database management system management system controls database controls database functions to ensure functions to ensure data are recorded data are recorded properly and are properly and are accessed only by accessed only by authorized users. authorized users.
  • 30. Exhibit 4 Exhibit 4 A Computer Network 7-30
  • 31. 7-31 A computer network is a set of hardware devices that are linked so they can exchange data among themselves using software.
  • 32. 7-32 Objective Objective 3 Describe how data are processed in various modules of an accounting system.
  • 33. 7-33 Exhibit 5 Exhibit 5 Customer Customer A Sales Processing Module sales order Sales Sales Customer files Sales files invoice cash goods Accounting Accounting General Ledger files Shipping Shipping Inventory files
  • 34. 7-34 The Sales Module The Sales Module Good internal controls requires Good internal controls requires that the personnel who account that the personnel who account for the cash should not also have for the cash should not also have physical access to the cash. physical access to the cash.
  • 35. 7-35 The Sales Module The Sales Module Accounts Accounts receivable and receivable and sales revenue sales revenue transactions are transactions are recorded at the recorded at the time goods are time goods are shipped to shipped to customers. customers. Cash and accounts Cash and accounts receivable receivable transactions are transactions are recorded when recorded when cash is received. cash is received.
  • 36. Exhibit 6 Exhibit 6 Vendor Vendor A Purchasing and Inventory Management Module purchase order Purchasing Purchasing Vendor files Accounting Accounting General Ledger files Receiving Receiving Inventory files invoice cash goods 7-36
  • 37. 7-37 The Purchasing and Inventory The Purchasing and Inventory Management Module Management Module The interaction of a The interaction of a company and its suppliers company and its suppliers is known as supply-chain is known as supply-chain management. management.
  • 38. 7-38 Exhibit 7 Exhibit 7 Employee Employee A Human Resources Module Time worked Cash Cash and payroll tax information Governments Governments Production Production Production files Accounting Accounting General Ledger files Personnel Personnel Employee files
  • 39. 7-39 The Human Resources Module The Human Resources Module The human The human resource function resource function in a business is in a business is responsible for responsible for hiring and training hiring and training employees. employees. The data needed to The data needed to account for account for employee activities employee activities involve involve employees’ hours employees’ hours and their wages or and their wages or salaries. salaries.
  • 40. 7-40 Exhibit 8 Exhibit 8 Sales Sales A Production Module Orders/ forecast Manufacturing Manufacturing Inventory files Employee files Cost Cost accounting accounting Stores/ Stores/ warehouse warehouse General Ledger files Plant Asset files
  • 41. 7-41 The Production Module The Production Module A special accounting function, A special accounting function, known as cost accounting, known as cost accounting, keeps track of the costs of keeps track of the costs of resources used in the resources used in the manufacturing process. manufacturing process.
  • 42. 7-42 Objective Objective 4 Explain the use of relational databases to perform accounting functions.
  • 43. 7-43 Relational Database Relational Database A relational database is a set of A relational database is a set of related files that are linked so related files that are linked so that files can be updated and that files can be updated and information can be retrieved information can be retrieved from the files efficiently. from the files efficiently.
  • 44. 7-44 Relational Database Relational Database A table is a file that A table is a file that contains data represented contains data represented as rows and columns. as rows and columns. Each column identifies a Each column identifies a particular attribute of the particular attribute of the entity or process entity or process described in the table. described in the table. Each Each attribute in attribute in the table is the table is referred to as referred to as a field. a field.
  • 45. 7-45 Relational Database Relational Database Each table contains Each table contains one or more primary one or more primary keys that uniquely keys that uniquely identifies the entities identifies the entities or processes recorded or processes recorded in the rows of the in the rows of the table. table. The primary The primary key is used to key is used to connect the connect the tables into tables into relationships. relationships.
  • 46. 7-46 Relational Database Relational Database The primary key in one table The primary key in one table connects to the primary key or a connects to the primary key or a foreign key in another table. A foreign key in another table. A foreign key is a field that is a foreign key is a field that is a primary key in a different table. primary key in a different table.
  • 47. 7-47 Objective Objective 5 Describe how a database system can be used to create a simple accounting system.
  • 48. 7-48 Copying and Opening Copying and Opening the Database the Database It is highly It is highly recommended that the recommended that the database be copied to database be copied to a hard drive before it a hard drive before it is used. is used.
  • 49. 7-49 Copying and Opening Copying and Opening the Database the Database It is a good idea It is a good idea to make several to make several FavoriteCookies1.mdb, FavoriteCookies1.mdb, copies of the copies of the FavoriteCookies2.mdb, FavoriteCookies2.mdb, database under database under and so on and so on different names. different names.
  • 50. 7-50 Database Contents Database Contents Tables contain the data stored in the system. Queries are short programs that permit a user to obtain data from one or more tables. Forms provide a means for entering or reading data stored in the database. Reports provide summary information intended primarily to be printed. Continued Continued
  • 51. 7-51 Database Contents Database Contents Macros are sequences of steps a user performs to complete a particular task. Pages provide a means of creating web documents for accessing a database. Modules are computer programs to provide higher level functions in the database.
  • 52. 7-52 Exercise 7-2 Exercise 7-2 Click the button to skip this exercise. If you experience trouble making the button work, type 62 and press “Enter.” Complete the following sentence with the appropriate term: 1. A _____________ is a set of computerized database files in which company data are stored in a form that facilitates retrieval and updating of the data. Continued Continued Press “Enter” or left click the mouse for solution.
  • 53. 7-53 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 2. A _________________ is a set of related relational database files that are linked so the files can be updated and information can be retrieved from the files efficiently. Press “Enter” or left click the mouse for solution.
  • 54. 7-54 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 3. An accounting record of each (control) account and the balance of each such is called the _______________________. general ledger Continued Continued Press “Enter” or left click the mouse for solution.
  • 55. 7-55 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 4. A _______________________________ database management system controls database functions to ensure data are recorded properly and can be accessed only by those authorized to record, update, or retrieve the data. Continued Continued Press “Enter” or left click the mouse for solution.
  • 56. 7-56 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 5. A computer program that permits data to be recorded and processed is one kind of ____________________. application software Continued Continued Press “Enter” or left click the mouse for solution.
  • 57. 7-57 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 6. Financial data about individual items of importance in a company are recorded in subsidiary accounts ________________________. Continued Continued Press “Enter” or left click the mouse for solution.
  • 58. 7-58 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 7. Summary accounts that maintain totals for all subsidiary accounts of a particular type are called ________________________. control accounts Continued Continued Press “Enter” or left click the mouse for solution.
  • 59. 7-59 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 8. Systems that integrate most of the business information functions are referred to as enterprise resource planning (ERP) system ___________________________________. Continued Continued Press “Enter” or left click the mouse for solution.
  • 60. 7-60 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 9. The interaction of a company and its supplysuppliers is known as ___________ chain management ____________________. Continued Continued Press “Enter” or left click the mouse for solution.
  • 61. 7-61 Exercise 7-3 Exercise 7-3 Complete the following sentence with the appropriate term: 10. The use of computer networks, such as the Internet, to provide for customer sales is E-business referred to as____________. Continued Continued Press “Enter” or left click the mouse for solution.
  • 62. 7-62 CHAPTER 7 THE END THE END
  • 63. 7-63