Accounting Information Systems
Before understanding Accounting Information Systems, we must understand about Accounting information which means the information describes in the form of accounting data that is meaningful to all of the Users of Financial Statements such as owners or shareholders, internal management, employees, customers, government agencies, etc. For example, Net Income for the year, Balances of Assets , Liabilities and Equity , Cash Inflow and Outflows, etc. are calculated that provides relia ble fi na ncial i nformatio n a bout compa ny's fi na ncial positio ns a nd Cash flows duri ng the accou nti ng period. Accounting Information must be provided economically, All the costs utilized for producing it must be cost effective. For example, the company installed technology like Quickbooks, then the cost of installation should be less than the output i.e., Prevention of Errors and Frauds, maximization of Net Income at minimum cost. Types of Accounting Information ...