info system
TRANSCRIPT
Anthony D.J. Matutino
Fundamentals of Information Systems and Systems DevelopmentIntroduction
“Inaccurate accounting records often contribute to business failures. Failure to understand accounting information can result to
poor business decision.” -G.V.Lising Jr.
Information System
Information
Non-quantitative Information Quantitative Information
Non-accounting Information Accounting Information
Operating Information Financial Accounting Management Accounting Tax Accounting
The need for information
quantitative – is information that is expressed in numbers
non quantitative – samples are visual impressions, conversations, television progs etc
accounting is primarily concerned with QUANTITATIVE INFO
Accounting is one of the several types of quantitative information
Four categories of information operating information financial accounting information management accounting information tax accounting information
INFORMATION
Non-quantitative information Quantitative information
Accounting information
Operating information
Financial accounting
Management accounting
Tax accounting
Non accounting information
OPERATING INFORMATION constitutes by far the largest quantity of accounting information.
FINANCIAL ACCOUNTING INFORMATION is intended for both managers and also for the use of parties external to the organization, including shareholders (and trustees) in profit organizations), banks, and other creditors, government agencies, investment advisers, and the general public.
MANAGEMENT ACCOUNTING INFORMATION – accounting information specifically prepared to aid managers. This information is used in three management functions
planning implementation control
PLANNINGis the process of deciding what actions should be taken care in the
future.
An important form of planning is BUDGETING – the process of planning overall activities of the organization for a specified period of time, usually a year. A primary objective of budgeting is to coordinate the separate plans made for various segments of the organization so as to ensure that these plans harmonize with each other
Planning involves making DECISIONS recognizing the problem specifying and ranking the criteria to be used to determine the
best solutions identifying alternative ways of addressing the problem or
opportunity analyzing the consequences of each alternative comparing these cosequences
IMPLEMENTATION – making plans does not itself ensure that managers will implement the plans. Each manager also must make more detailed implementation plans to encompassed in the budget
CONTROL – manage / perform properly
Accounting information is used in the control process
as means of communication motivation attention getting appraisal
System
Set of detailed methods, procedures, and routines established or formulated to carry out a specific activity, perform a duty, or solve a problem. –BusinessDictionary.com
Elements of System
Inputs and outputs Processor Control Environment Feedback Boundaries/interface
Planning Implementation Control
Plan revision
Appropriate action
Feedback
Acknowledgement and Sources: Fundamentals of Accounting by Agamata &
Berbano Accounting: Text and Cases by Robert N.
Anthony Accounting Principles by Kieso and Weygant Basic Accounting by G.V.Lising Jr BDO International Deloitte (www.iasplus.com) Wikipedia (http://en.wikipedia.org) BusinessDictionary.com
Thank you!