1. The document discusses different types of software including system software like operating systems and utility programs, as well as application software that can be prewritten or custom. 2. It explains the basic functions of an accounting information system including gathering data from transactions, manipulating the data, storing it, and preparing documents. 3. A sample accounting information system described is a distribution system that processes data from customers, suppliers, and management to perform the core tasks of an AIS.

1. Business Software
Packages

2. Software
Generic term for organized collections of data and instructions.

3. 1. System Software
2. Application Software
Two Basic Types of Software

4. System Software performs certain fundamental tasks that all users of
a particular computer require.
These are tasks that relate to the hardware and not to the
applications that the firm performs
There are three (3) basic types of System Software:
1. Operating Systems
2. Utility Programs
3. Language Translators
System Software

5. The Operating System manages the computer’s processes,
functioning as an interface connecting the user, the software that
processes the firm’s data and the hardware
Examples are:
-UNIX
-Windows
-Linux
-Mac OS
Operating System

6. 1. Schedule Tasks
2. Manage Hardware and Software Resources
3. Maintain System Security
Password – a group of characters that identifies users as being
authorized to have access to the system
4. Enable Multiple user Resource Sharing
Multitasking – an OS feature that handles the scheduling and
execution of programs for many users at the same time
5. Handle Interrupts
Interrupt – a technique used by OS to suspend temporarily the
processing of one program to allow execution of another program
Basic Functions of an OS

7. A utility program is a routine that enables the user to perform
certain basic data processing operations that are not unique to a
particular user’s applications.
Utilities enable users to copy files, erase files, sort the contents of
files, merge two or more files together, and preapre removable
storage media for use.
Other utilities allow lost or bad files recovery, monitor system
performance and even control the flow of data bet. Users and
computers.
Utility Programs

8. Translators, programming languages that translate the programmer’s
instructions into those of the computer, were developed to proved a
more friendly way to instruct the computer.
Examples are: COBOL, C, C++, Java and Visual Basic
Language Translators

9. A fourth-generation language is one that expresses what is to be
done by the computer without explicitly defining how the tasks will
take place.
Database Management System software contains 4GL in the form of
query languages and report generator languages.
Fourth Generation Languages (4GL)

10. Application Software processes the firm’s data.
Two basic types:
1. Prewritten
2. Custom
Application Software

11. Prewritten Application Packages also known as off-the-shelf
application software, are produced by suppliers and sold to users.
To use it, the users need only to install the software on their
hardware, with little or no modification.
Two important benefits:
1. It is available NOW
2. Less expensive than custom software
Prewritten Application Software

12. Custom Application Software, as it name suggests, are software
written by business’ own computer programmers or consulting group
of programmers to meet its needs.’
Custom Application Software

13. Computer software that is simple and intuitive to use is frequently
said to be user friendly.
The term may elicit a negative connotation in that it implies that the
application has been made very simplistic so that anyone can use it.
Actually, it means that the application has been carefully engineered
so that the varied talents and skills ofa wide range of users can be
accommodated.
The Role of User-Friendly Software

14. Accounting Software
Information System

15. Data Processing (DP) is the manipulation or transformation of such
symbols as numbers and letters for the purpose of increasing their
usefulness.
Transaction Processing (TP), is data processing applied in business
data.
The two terms can be used interchangeably.
What is Data Processing?

16. A firm’s data processing tasks are performed
by an accounting information system (AIS)
that gathers data describing the firm’s
activities, transforms the data into
information and makes the information
available to users both inside and outside the
firm.
Accounting Information System

18. The AIS performs four basic data processing tasks:
1. Data Gathering
2. Data Manipulation
3. Data Storage
4. Document Preparation
Data Processing Tasks

19. As the firm provides products and services to its environment, each
action is described by a data record. When the action involves an
environmental element, it is called a transaction, hence the term
transaction processing.
The data processing system gathers the data that describe each of the
firm’s internal actions and its environmental transactions.
Data Gathering

20. It is necesarry to manipulate the data to transform it into
information. Data manipulation operations include:
1. Classifying
2. Sorting
3. Calculating
4. Summarizing
Data Manipulation

21. In a small firm there can be hundreds of transactions and actions each
day; in a large firm there are thousands.
Each transaction is described by several data elements. All of this
data must be kept somewhere until it is needed., and that is the
purpose of data storage.
Data Storage

22. The AIS produces outputs for individuals and organizations both inside
and outside the firm. The output is triggered in two ways:
• By an action
Outputs are produced when something happens. An example
is the bill that is prepared each time a customer order is filled.
• By a time schedule
Outputs are produced at a particular time. An example is a
payroll check that is prepared each Friday.
Document Preparation

23. There are several characteristics of data processing that clearly
distinguish the AIS from other Computer Based Information
Systems:
1. Performs necessary tasks
2. Adheres to relatively standardized procedures
3. Handles detailed data
4. Has a primarily historical focus
5. Provides minimal problem-solving information
Characteristics of the AIS

24. A good example of an AIS is the one that is used by
distribution firms – firms that distribute products or
services to their customers.
We call the system the distribution system.
A Sample Accounting Information System

25. System Overview

26. Distribution
System
Customers
Suppliers
Management