Saturday, August 15, 2009

accounting information system

An Accounting information system collects and processes transaction date and then disseminates the financial information to interested parties. accounting information systems vary widely form one business to another.
Various factors shape these systems:
- the nature of the businesses and the transactions in which it engages.
- the size of the firm the volume of data to be handled, and
- the information demands that management and other require.
accounting information system helps management answer such question as:
. how mush and what kind of debt is outstanding?
. were sales higher this period than last?
. what assets do we have?
. what were our cash inflows and outflows?
. did we make a profit last period?

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