Application of Computers in Accounting — Flashcards

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A computer performs recording, classification, summarisation, and interpretation by analysis of accounting data. It is not limited to payroll. It also helps in preparing ledger accounts, trial balance…

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Automation of accounting process means carrying out the accounting process with the help of computers. It includes preparing vouchers, recording transactions, posting to ledger, drawing trial balance,…

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TPS is the first stage of a computerised accounting system. It records, processes, validates, and stores transactions for later retrieval and use. It is concerned with financial transactions only.

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TPS is important because it handles the basic financial transaction data on which the rest of the accounting system works. It forms the base for recording, checking, storing, and reporting transaction…

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The main steps are: data collection, data editing, data verification, data manipulation, data storage, report generation, and query reports. These steps help in turning raw transaction data into usefu…

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Data collection is the step in which all data needed to complete one or more transactions is gathered. This may be done manually or with devices like scanners and point of sale equipment.

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Data verification is the process of checking data for errors and correcting them if any mistake is found. It helps make sure the stored transaction data is accurate.

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All three are examples of TPS. Ordering processing handles client orders, payroll applications handle wages and salaries, and automatic teller machines handle bank transactions through specialised com…