Computers in Accounting Test - 8

Versatility is the character of a computer system is shown in the statement ‘ability to perform various tasks, simple as well as complex’. Computers are versatile machines and are capable of performing any task as long as it can be broken down into a series of logical steps.

Accuracy of a computer is consistently high and the degree of accuracy of a particular computer depends on the instructions and the type of processor.

Periodic statements which show financial position of a firm at a given time, or over a stated period, resulting from its business transactions and operations. Accounting reports are compilations of financial information that are derived from the accounting records of a business. 

Transaction processing system is the first stage of computerized accounting system. A transaction process system (TPS) is an information processing system for businesstransactions involving the collection, modification and retrieval of all transaction data.

Tally Accounting is a software used for accounting purposes. It is provided byTally Solutions and is a standard/readymade business accounting software.

Accounting software is a computer program build and setup up to store and manage the accounts and also perform arithmetic or accounting operation.

Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, general ledger, payroll, and trial balance. In financial accounting the processes of posting, totaling and preparing Trial balance are also performed where in computerized accounting, theses processes are performed through the software.

Connectivity is being acknowledged as a sixth element of the computer system. The manner in which a particular computer system is connected to others say through telephone lines, microwave transmission, satellite link, etc. is the element of connectivity.

An input document initiates an accounting transaction. An output document is generated by a system, whether it is an audit trail listing or a complex financial statement.

An accounting information system typically has six basic parts: People who use the system, including accountants, managers, and business analysts. Procedure and instructions are the ways that data are collected, stored, retrieved, and processed. A typical accounting system comprises 6 parts.