Computerised Accounting System
Optional Unit V, an alternative to Analysis of Financial Statements.
About this unit
This optional unit is an alternative to Analysis of Financial Statements. It explains how computers are used to record, store and process accounting data and to produce reports. You study the concept and types of computerised accounting, how accounts are organised and coded, how an accounting information system supports decisions, and how spreadsheets are used to prepare schedules, reports and charts for business data.
Key ideas
- Computerised accounting system (CAS): concept, types, features, advantages and limitations.
- Chart of accounts, codification and hierarchy of account heads.
- Accounting information system and its subsystems.
- Spreadsheet basics: cells, formulae, functions, references and pivot tables.
- Depreciation, loan repayment and payroll schedules.
- Graphs and charts for presenting business data.
How to prepare
Learn the types of software and coding methods with an example of each. Practise writing spreadsheet formulae and functions such as SUM, IF, SLN and PMT, and understand relative and absolute cell references. Expect conceptual questions and simple calculations on depreciation, instalments and pay.
Topics in this chapter
Concept and types of computerised accounting
Concept, types, features, advantages and limitations of a computerised accounting system (CAS).
5 questionsStructure of CAS
Chart of accounts, codification and hierarchy of account heads.
5 questionsAccounting Information System
Meaning and role of an accounting information system.
5 questionsSpreadsheets in accounting
Spreadsheet features, generating accounting information, pivot-table reports and common spreadsheet errors.
5 questionsSchedules with spreadsheets
Depreciation schedules, loan repayment schedules and payroll accounting.
5 questionsGraphs and charts for business data
Presenting business data visually.
5 questions