Accounting Information System

Running head: ACCOUTING INFORMATION SYSTEM
Accounting Information System
Name of student:
Name of the University
Author’s note

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ACCOUTING INFORMATION SYSTEM
EXECUTIVE SUMMARY:
This report is providing the complete details of Adam & Co.’s accounting information
system. The company is mainly conducted its performance through the using of centralized
accounting information system. In the first part of this report is presenting the components of
the accounting information system. Next, to such details, this report is providing the details of
objectives of such information system. Next to such objectives this report is pointing the
various expenditure cycle of Adam & Co., including the flow charts of each period.

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ACCOUTING INFORMATION SYSTEM
Table of Contents
Introduction:...................................................................................................................4
Elements of Accounting Information system:................................................................5
Objectives of Accounting Information system:.............................................................8
Expenditure Cycles of Adam & Co:..............................................................................9
Conclusion:..................................................................................................................14
References:...................................................................................................................15

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ACCOUTING INFORMATION SYSTEM
Introduction:
Financial statement is considered as one of the important financial component for an
organization. In case to maintain the overall financial record of an organization, it is required
to prepare a proper financial statement. In previous days the financial transactions are
maintained manually, however in the present situation due to up gradation in technology,
financial transactions can be automatically maintained (Al-Hawari 2017)
An accounting information system is generally the system, through which an
organization keep track of records in all its financial transactions properly. In the present
scenario every organization is required to maintain an effective accounting information
system so that the organization can record its each and every transaction in a proper and
chronological ordered. An information system relating to accounting is mainly represented
the financial statements of an organizations. Such accounting system is mainly conducted
through the using of bookkeeping system. In case to maintain the revenues and expenses of
an organization, such system is used to prepare income statement and for the purpose of
evaluating the assets and liabilities it’s prepare the balance sheet during the particular period
(Ali, Bakar and Omar 2016). Through the preparation of the above financial statements the
accounting information system provides proper guidance to maintain every financial
transaction and also to make an effective managerial business decisions.
An accounting information system generally divided into three categories on behalf of
accounting transactions (Nekoee, Zadeh and Moradi 2017). Those are;
Manual system: Normally the business, which is small and older, is using such system in
case to maintain company’s overall financial transactions. In such system an organization
normally keeps its records manually.