Principles Of Accounting Chapter 7

Front 1

Accounting Information System

Back 1

The processes that gather data, put them into useful form, and communicate the results to management.

Front 2

Cash Payments Journal

Back 2

A multicolumn special-purpose journal used to record payments of cash. Also called cash disbursements journal.

Front 3

Cash receipts journal

Back 3

A multicolumn special-purpose journal used to record transactions involving the receipt of cash.

Front 4

Compatibility principle

Back 4

the principle that holds that the design of an accounting information system must be in harmony with the organizational and human factors of the business.

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Controlling account

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An account in the general ledger that summarizes the total balance of a group of related accounts in a subsidiary ledger. Also called control account.

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Control principle

Back 6

the principle that holds that an accounting information system must provide all the features of internal control needed to protect the firm's assets and ensure that data are reliable.

Front 7

Cost-benefit principle

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The principle that holds that the benefits derived from an accounting information system must be equal to or greater than its cost.

Front 8

Data processing

Back 8

The means by which an accounting system gathers data, organizes them into useful forms for business decision making, and issues the resulting information to users.

Front 9

Electronic commerce (ecommerce)

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The conduct of business transactions on computer networks, including the internet.

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Electronic Data Interchange (EDI)

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Private links that facilitate the conduct of electronic commerce.

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Enterprise resource planning (ERP) systems

Back 11

comprehensive, computerized information systems that integrate financial and nonfinancial information about customers, operations, and suppliers in a single database.

Front 12

Event-to-knowledge (E2K) management

Back 12

A system that uses the Internet to get information to users within and outside a company in the quickest way after an event like a sale or a purchase has occured.

Front 13

Extensible Business Reporting Language (XBRL)

Back 13

A new computer language developed by accountants and others for the express purpose of identifying and communicating financial information.

Front 14

Flexibility principle

Back 14

The principle that holds that an accounting information system must be flexible enough to allow for growth in the volume of transactions and for organizational changes.

Front 15

General ledger systems

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A group of integrated software programs that accountants use to perform the major accounting functions.

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Graphical user interface (GUI)

Back 16

the employment of symbols, called icons, to represent operations, which makes software easier to use.

Front 17

Icons

Back 17

Symbols representing operations that appear on a computer screen as part of a graphical user interface.

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Internet

Back 18

the world's largest computer network.

Front 19

Manual data processing

Back 19

A system of accounting in which each transaction is entered manually from a source document into the general journal (input device) and each debit and credit is posted manually to the correct ledger account (processor and memory device) for the eventual preparation of financial statements.

Front 20

Purchases journal

Back 20

A single-column or multicolumn special-purpose journal used to record all purchases on credit.

Front 21

Sales journal

Back 21

A type of special-purpose journal used to record credit sales.

Front 22

Source documents

Back 22

The written evidence that supports each accounting transaction for each major accounting function.

Front 23

Special-purpose journal

Back 23

An input device in an accounting system that is used to record a single type of transaction.

Front 24

Spreadsheet

Back 24

A computerized grid of columns and rows into which the user places data or formulas related to financial planning, cost estimating, and other accounting tasks.

Front 25

Subsidiary ledger

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A ledger separate from the general ledger that contains a group of related accounts; the total of the balances in the subsidiary ledger accounts must equal the balance of the related controlling account in the general ledger.

Front 26

Supply-chain management

Back 26

A system that uses the Internet to track the supplies and materials a manufacturer will need on a day-to-day basis.