Term
| Name two source documents (input) for a manual data-processing system and a computer data-processing system and the method by which these are inserted onto a source document. |
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Definition
Manual data-processing system: Everything hand written, eg. reciepts, cheque butts
Computer data-processing system:
It could be scanned (if appropriate software is on hand and connected to the cash register), but it is also entered using a keyboard and a chart of account number. eg. cheque butt, invoice |
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Term
| Name three advantages of using an accounting software package/computer package |
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Definition
-Less storage space needed to store files, information etc
-Information output is timely for decision making; wouldnt take a long time to input data into a computer programme, as it would to write up all information by hand
-Less employees needed; the computer automatically enters transactions into and up-dates records |
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Term
| What is the data processing process/ order of balance day adjustments? |
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Definition
| Input > Processing > Output > Storage |
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Term
| State three processes for updating information for both Manual and computer processing stages |
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Definition
Manual: -Journals
-Ledger accounts
-Trial balance
Computer: -Ledger account
-Automatic up-date
-CPU (central processing unit) |
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Term
| State three different forms of financial statements that could be found in the output section of the data processing/ balance day adjustments equation for both the manual and computer processing stages |
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Definition
M: -Performance, position Cash flows
-Statments to debtors
-Budgets
These are prepared by hand.
C: -Purchase orders
-Sales reports
-Statements to debtors
These can be viewed on the monitor screen of the computer (VDU) or printed out on paper. |
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Term
| What phrase MUST you always use when describing a method of recording transactions in a manual accounting system? |
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Definition
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Term
| What is the name of the item of computer hardware that processes accounting information? |
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Definition
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Term
| Explain how transactions are processed in a manual accounting system. |
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Definition
| By hand the information from various source documents is transfered into journals, to ledger accounts to trial balances. This makes a summary of all information gathered. |
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Term
| Explain why computer accounting systems are faster to use than a manual. |
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Definition
-Automatically updates itself: this means that you do not have to fill in transactions yourself, the computer does this for you.
-Can automatically calculate various sums which means you do not have to add/subtract the different values, which overall saves time |
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Term
| Key differences of storage of financial documents between manual and computer systems |
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Definition
M: -Kept in filing cabinet/lever-arch file or another type of physicall organisational method
C: -Stored electronically on a hard drive
-Stored on discs/ back up files |
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Term
| One means of obtaining output on a computer manual system once processing is complete: |
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Definition
| Viewing the monitor of a computer (VDU - visual display unit) |
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Term
Is this true or false + explain why:
"Computers have replaced accountants" |
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Definition
| No, as computers have just been used to make the processing of financial data faster and more accurate. This means that accountants will then in turn will have a greater period of time to make more useful decisions for their business. |
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Term
| How many years must all source documents be kept for tax purposes? |
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Definition
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Term
| When is the trial balance calculated? |
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Definition
| At the end of each financial year |
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Term
| What are some examples of software packages that help to speed up the processing of transactions? |
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Definition
-MYOB
-Moneyworks
-Microsoft Office |
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Term
| Describe how accounting information is processed for a computer data processing system |
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Definition
| The central processing unit (cpu) will perform calculations automatically, and the accounting program used will update ledger accounts and final statements when each transaction is entered |
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