Accounting information system – meaning

The accounting information system is the system which provides quantitative information about the effects of transactions and other events on accounting entity.

An accounting information system is generally a computer-based method for tracking accounting activities in conjunction with information technology resources. It combines the application of generally accepted accounting principles with the use of information technology resources.

An accounting information system generally depends on size and complexity of the entity’s activities however across all entities accounting information system involves processing and storing data related to balances and transactions in of the entity. The data stored in the system includes revenue, expenses, employees information, tax information etc.

The various output of accounting information system includes reports such as accounts receivable ageing reports, depreciation schedules for fixed assets and trial balance for financial reporting.

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