Accounting Information Systems

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Recommended: Role and purpose of accounting information systems

Financial Accounting Accounting systems is very important tool for any type business such as corporation, Partnership, and Sole proprietorship. Accounting systems is also referred to as Accounting Information system. Accounting Information systems is process of collecting and processing transaction data and communicating with decision makers. Every business should have Accounting Information system because it helps us answer questions such as should we expend our company overseas? Do we have enough payroll for our employees? Accounting information systems can also help us understand what types of inventory we should use. As we learn more about accounting information systems throughout this paper we will discuss basic structures of assets, liabilities, and stock holder’s equity. We will also discuss four basic financial statements and effects of Revenues, expenses and dividends. Finally we will also discuss difference between net income and cash flow. In order for business owners to find success they need to know a lot of skills such as knowledge about the accounting system. Without the accounting system, the business owner would not know if he is making profit or loss. An accounting system will also include: data collection, data organization, accounting database, financial statements and reports, analysis. Assets are resources with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future economic benefit. Assets are recorded in the balance sheet and are generated to increase cash flow. They are the items on a balance sheet showing the book value of property owned. Assets can be anything physical such as cash, machinery, inventory, land and building. "Liabilitie... ... middle of paper ... ...per how important accounting systems has been for business such as corporation, Partnership, and Sole proprietorship. We defined what accounting information system is and how it works in business. We discussed why every business should have Accounting Information system because it helps us answer questions such as should we expend our company overseas? Do we have enough payroll for our employees? Accounting information systems can also help us understand what types of inventory we should use. As we discussed basic structures of assets, liabilities, and stock holder’s equity. We will also discussed four basic financial statements and effects of Revenues, expenses and dividends. Finally also discussed difference between net income and cash flow. We learned why business owner should have accounting information systems and what impact it could have on his business.

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