Accounting Information Systems, 6th Edition by James Hall

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By James Hall

The 6th variation of ACCOUNTING details platforms presents thorough and up to date assurance of accounting info platforms and similar applied sciences. It positive aspects an early presentation of transaction cycles, in addition to an emphasis on ethics, fraud, and the trendy production setting. The ebook makes a speciality of the desires and tasks of accountants as finish clients of platforms; structures designers; and auditors. This variation offers entire built-in insurance of Sarbanes-Oxley because it impacts inner controls and different appropriate subject matters tormented by this laws, in addition to reorganized dialogue of transaction cycles that make the stability among handbook- and computer-based structures extra obvious.

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Additional resources for Accounting Information Systems, 6th Edition

Example text

First, accounting captures and records the financial effects of the firm’s transactions. These include events such as the movement of raw materials from the warehouse into production, shipments of the finished products to customers, cash flows into the firm and deposits in the bank, the acquisition of inventory, and the discharge of financial obligations. Second, the accounting function distributes transaction information to operations personnel to coordinate many of their key tasks. Accounting activities that contribute directly to business operations include inventory control, cost accounting, payroll, accounts payable, accounts receivable, billing, fixed asset accounting, and the general ledger.

For example, a particular customer’s name, address, and account balance is one occurrence (or record) within the AR class. To find a particular record within the database, we must be able to identify it uniquely. 1 This unique identifier attribute is the primary key. Because no natural attribute (such as customer name) can guarantee uniqueness, we typically assign artificial keys to records. The key for the AR records in Figure 1-6 is the customer account number. This is the only unique identifier in this record class.

We will use this framework to identify the domain of AIS and distinguish it from MIS. Keep in mind that Figure 1-3 is a conceptual view; physical information systems are not typically organized into such discrete packages. More often, MIS and AIS functions are integrated to achieve operational efficiency. The distinction between AIS and MIS centers on the concept of a transaction, as illustrated by Figure 1-4. The information system accepts input, called transactions, which are converted through various processes into output information that goes to users.

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