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Hardware and Software Selection - Essay Example

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In the paper “Hardware and Software Selection” the author analyzes accounting of two cycles: the processing cycle and the reporting cycle. In the past the method was achieved by recording transactions in a journal and then transferring the information into areas called accounts. …
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Hardware and Software Selection

Download file to see previous pages... This meant making sure there were no errors. First there was a trial balance. It was a way of ensuring the values at the end of the period were equal. This was called debits equal credits. The next step was to proceed with what saw called closing of the books. This process made it possible to create two main documents. First was the income statement the income statement told if the business made money or lost money was referred to as the processing cycle.
Computer Technology
Next came the impact of computer information systems. It became necessary to introduce a new concept. The new concept is called modules. The computer made it possible to avoid errors in the transfer process between cycles. Today, many systems move the information immediately and automatically from recording to impact on the reporting result.
The computer system is made up of five parts (O’Leary T.J. and L.L 2006).(1)People (2)procedures (3)Software (4)hardware (5)data. It is now possible for people to work in different segments of the accounting documentation because of the functional modules introduced.
Some modules can be invoicing, accounts receivable accounts payable payroll general ledger. The type of business determines the level of complexity. The emphasis here will have to be on people. We must consider who will be operating it and who will be using the output information. Next we turn to the software. ...Download file to see next pagesRead More
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