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Accounting System Structure

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LP1 Assignment: Accounting System Structure
End of Chapter - Question #1

A.) An accounting information system is a computer-based method for tracking accounting activity storage by collecting the data, processing it, and reporting the information back to use internally and externally within a company.

B.) The FASB conceptual framework is a guide for the accounting principles that I follow on a daily basis in every class I am taking. The FASB works as more of a building block for the AIS. The constraints, principles, assumptions, qualitative characteristics, elements of financial statements, and objective to financial reporting is what builds the AIS. Every business works with an AIS, you just may not see it. Any place you go to has a working AIS that functions from the FASB conceptual framework. With that said, the financial reporting is then consistent. This gives way for faithful representation in an organization.

C.) Inputs - revenues, receipts, checks, payroll, etc.. Processes - how the AIS is going to be processes the inputs into vital information. Outputs - financial statements for internal and external reporting purposes. Storage - whether it is paper form, electronically, or both, it is easily able to be pulled up for analysis if a problem should arise. Also, it includes information for inventory, customers, and vendors. Lastly, Internal Controls - having daily backups of data and making sure there is separation of duties. One person working with processes the payroll should not be the one who is also working with customers or vendors. Separating the tasks ensures there is no fraudulent acts in the midst of an organization.

D.) Sponsored information is to sell products and services and are not necessarily 100% biased and could limit the information on their sites. Practitioner/public information is usually more trustworthy and objective over

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