Mind Map Gallery Accounting Information System

Accounting Information System

This is a mind map of the Accounting Information System. You can make and share your own mind maps easily. Just try EdrawMind mind mapping software for free! An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve, and report its financial data so it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and tax agencies.

Edited at 2022-10-14 16:17:07

kael dlr

Accounting Information System

kael dlr

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Outline

Accounting Information System

What is it?

combination of personel, records, procedures for financial information

Way of tracking all accounts & activity

AIS uses Generally Accepted Accounting Principles

Process

Accounting process

Translates business transactions into accounting information

Accounting information

Made as a reference to aid in decision making

Decision makers

makes decisions based on accounting information

Economic Activities

Are collected, recorded, analyzed and interpreted through the accounting process

Should:

Process info efficiently (Cost-benefit principle)

Protect assets (Control Principle)

Harmonize (Compatibility Principle)

Accomodate growth (Flexibility)

Types:

Manual systems

Computer based (cash register)

Database (includes accounting equations)

Definitions

Assets

Current Assets

Cash - Can be accepted at face value

Cash equivalents - highly liquid investemnts

Notes receivable (mas grabe) - Pledge by customer (lender takes posession of valueable property)

Accounts Receivable (Mas light)

Claims against customer for purchase on credit

Inventories

Laman

Prepaid expenses

Prepaid rent

Insurance

Non Current Assets

Property, Plant, & Equipment

goods that are expected to last for 1 year

Accumulated Depreciation

Pagbawas ng value

Intangible assets (no physical substance)

Patent, Copyright, Trademarks, Franchises

Liabilities

Current

Account Payable

Obligation of entity from purchase

Notes payable

Entity is in a pledge

Accured Liabilities

Unpaid expenses

Unearned revenue

Payment received for unrendered service

Non- Current

Mortgage

long term debt (hosues)

Bonds Payable

Financing amidst debt

Equity

Capital

Initial investment of the owner

Withdrawal

Kumuha mula sa business

Income Summary

temp account for closure at the end of the accounting period

Income

Revenue

Performance of Service

Sales

Sale of goods

Expense

Financial Statement

Elements

Permanent Accounts / Balance sheet accounts

Asset

controlled inflow of economic benefits

Current

Cash, accounts/notes receivable, inventory, prepaid assets

Non-Current

long-term notes, PPE, intangibles

Contra-assets

Allowance for errors, Depreciation

Liability

Obligation, outflow of economic benefits

Current

Accounts/notes payable, accured liabilities, unearned revenue

Non-Current

Long term, mortgage, bonds

Equity

Residual interest in (asset-liability)

Owner's capital/withdrawal, income summary

Temporary Accounts / Income statement accounts

Income

+ asset, - liability, increase in equity

Revenue (service), Sales (merchandising), interest, other income

Expenses

- asset, + liability, decrease in equity

Utilities expenses, transportation, salary, etc