After completing this chapter you should be able to: Identify the basic concepts of an accounting information system, describe the nature and purpose of a subsidiary ledger, explain how companies use special journals in journalizing. | Prepared by Coby Harmon University of California, Santa Barbara Westmont College 7-1 7 Accounting Information Systems Learning Objectives After studying this chapter, you should be able to: [1] Identify the basic concepts of an accounting information system. [2] Describe the nature and purpose of a subsidiary ledger. [3] Explain how companies use special journals in journalizing. 7-2 Preview of Chapter 7 Accounting Principles Eleventh Edition Weygandt Kimmel Kieso 7-3 Basic Concepts of AIS Accounting information system (AIS) collects and processes transaction data and communicates financial information to decision makers. Includes: Documents that provide evidence of transactions. 7-4 All steps in the accounting cycle. Manual or computerized accounting system. LO 1 Identify the basic concepts of an accounting information system. Basic Concepts of AIS Cost Effectiveness - Benefits must outweigh the costs. Illustration 7-1 Principles of an efficient and effective AIS. Useful Output Flexibility - The system should be sufficiently flexible to meet the resulting changes in the demands made upon it. 7-5 LO 1 Identify the basic concepts of an accounting information .
