Ch7 Accounting Information Systems

What is an Accounting System? An accounting system includes the methods and procedures used by a business to collect, classify, summarize, and report financial data for use by management and external users. What is the Accounts Payable Subsidiary Ledger? The Accounts Payable subsidiary ledger contains the individual ledger accounts of all suppliers, vendors, and creditors. What is a Cash Payments Journal? The Cash Payments Journal is a special journal in which all the cash payments made by check are recorded. What is a Cash Receipts Journal? The Cash Receipts Journal is a special journal in which all cash receipts are recorded. What is a Controlling Account? The Controlling account is the account in the general ledger that summarizes the balances of all the accounts in a subsidiary ledger. Another name used is “Control Account.” What is the General Journal?The General Journal is the two-column form used for entries that do not “fit” in any of the special journals. What is the General Ledger? The General Ledger is the primary ledger that contains all of the balance sheet and income statement accounts. What is the Purchases Journal? The Purchases Journal is the special journal in which all items purchased on account are recorded. What is the Revenue Journal? The Revenue journal is the special journal in which all sales and services on account are recorded. What are Special Journals? Special Journals are designed to be used for recording transactions that are similar and therefore grouped to save time and effort in the recording process. What is a Subsidiary Ledger? A Subsidiary ledger is a ledger that contains individual accounts with a common characteristic. What is a Schedule of Accounts Receivable Subsidiary Ledger? A Schedule of Accounts Receivable is a list that contains the names and unpaid balances of customers. The total of the schedule must agree with the Accounts Receivable control account. What is a Schedule of Accounts Payable Subsidiary Ledger? A Schedule of Accounts Payable is a list that contains the names and open balance that a company owes to its creditors. The total of this schedule must agree with the Accounts Payable controlling account. What are the Titles of the four earlier chapters we’ve studied? Chapter 1, Accounting in Action Chapter 2, The Recording Process Chapter 3, Adjusting the Accounts Chapter 4, Completing the Accounting Cycle. Chapter 5, Accounting for Merchandising Operations Chapter 6, Inventories Ch1 Accounting in Action Ch2 Recording Process Ch3 Adjusting the Accounts Ch4 Completing the Accounting Cycle Ch5 Merchandising Operations Ch6 Inventories Ch7 Accounting Information Systems Ch8 Internal Control and Cash Ch9 Accounting for Receivables Ch10 PP&E, Natural Resources, and Intangible Assets Ch11 Current Liabilities and Payroll Ch12 Partnerships Ch13 Corporations Ch14 Corporations:Dividends, RE Ch15 Long Term Liabilities Ch16 Investment Ch17 Statement of Cash Flows Ch18 Financial Statement Analysis Plato and Accounting Price/Earnings Ratio Plant Assets Luca Pacioli and DaVinci The secrets of 'no-doze' prose: Mary Duffy's Sentence Openers

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