Beruflich Dokumente
Kultur Dokumente
Coby Harmon
University of California, Santa Barbara
Westmont College
7-1
Accounting Information
Systems
Learning Objectives
After studying this chapter, you should be able to:
[1] Identify the basic concepts of an accounting information system.
[2] Describe the nature and purpose of a subsidiary ledger.
[3] Explain how companies use special journals in journalizing.
7-2
Preview of Chapter 7
Accounting Principles
Eleventh Edition
Weygandt Kimmel Kieso
7-3
7-4
Illustration 7-1
Principles of an efficient
and effective AIS.
Useful
Output
7-6
Advantages:
Entry-Level Software.
7-7
Audit trail
Internal control
Customization
Network Compatibility
7-8
7-9
Subsidiary Ledgers
Used to keep track of individual balances.
Two common subsidiary ledgers are:
1. Accounts receivable (customers)
2. Accounts payable (creditors)
7-10
Illustration 7-2
Relationship of general ledger
and subsidiary ledgers
Subsidiary Ledgers
7-11
Illustration 7-2
Relationship of general and
subsidiary ledgers
LO 2
Subsidiary Ledgers
Advantages of Subsidiary Ledgers
1. Show in a single account transactions affecting one
customer or one creditor.
2. Free the general ledger of excessive details.
3. Help locate errors in individual accounts.
4. Make possible a division of labor.
7-12
7-13
Special Journals
Used to record similar types of transactions.
Illustration 7-5
7-14
Special Journals
Question
Each of the following is a subsidiary ledger except the:
a. accounts receivable ledger.
b. accounts payable ledger.
c. customers ledger.
d. general ledger.
7-15
Special Journals
Sales Journal
Illustration 7-6
2014
Perpetual inventory system, one entry at selling price in Sales Journal results
in a debit to Accounts Receivable and a credit to Sales. Another entry at cost
results in a debit to Cost of Goods Sold and a credit to Inventory.
7-16
Special Journals
Posting the Sales Journal
2014
Illustration 7-7
2014
2014
2014
2014
7-17
Special Journals
Posting the Sales Journal
2014
Illustration 7-7
2014
2014
2014
7-18
Special Journals
Proving the Ledgers
Illustration 7-8
7-19
Special Journals
Advantages of Sales Journal
7-20
Special Journals
Cash Receipts Journal
Illustration 7-9
2014
Special Journals
Posting
the Cash
Receipts
Journal
Not all of the
subsidiary or
general ledger
accounts are
shown on the
illustration to the
right. See
Illustration 7-9
for the complete
illustration.
7-22
Illustration 7-9
Illustration 7-9
Special Journals
Proving the Ledgers
7-23
Illustration 7-11
Special Journals
Question
Cash sales of merchandise are recorded in the
a. cash payments journal.
b. cash receipts journal.
c. general journal.
d. sales journal.
7-24
Special Journals
Question
Which of the following is not one of the credit columns in the
cash receipts journal:
a. Other accounts
b. Accounts payable
c. Accounts receivable
d. Sales
7-25
Special Journals
Illustration 7-13
Purchases Journal
2014
2014
2014
2014
7-26
Special Journals
Illustration 7-13
Purchases Journal
2014
2014
2014
Special Journals
Proving the Ledgers
Illustration 7-14
7-28
Special Journals
Question
All of the following are advantages of using subsidiary
ledgers except they:
a. show transactions affecting one customer or one
creditor in a single account.
b. free the general ledger of excessive details.
c. eliminate errors in individual accounts.
d. make possible a division of labor.
7-29
Special Journals
Cash Payments Journal
Illustration 7-16
2014
Special Journals
Cash Payments
Journal
Illustration 7-16
2014
2014
2014
2014
7-31
Special Journals
Illustration 7-16
2014
2014
2014
2014
2014
2014
2014
7-32
Special Journals
Proving the Ledgers
7-33
Illustration 7-17
Special Journals
Question
Credit purchases of equipment or supplies other than
merchandise are recorded in the:
a. cash payments journal.
b. cash receipts journal.
c. general journal.
d. purchases journal.
7-34
Special Journals
Question
Cash payments of merchandise are recorded in the:
a. cash payments journal.
b. cash receipts journal.
c. general journal.
d. purchases journal.
7-35
Special Journals
Effects of Special Journals on General Journal
7-36
Special Journals
Illustration 7-18
Journalizing and
posting the
general journal
7-37
A Look at IFRS
Key Points
7-38
A Look at IFRS
Key Points
7-39
2.
3.
4.
A Look at IFRS
Key Points
7-40
A Look at IFRS
Looking to the Future
The definitional structure of assets, liabilities, equity, revenues, and
expenses may change over time as the IASB and FASB evaluate their
overall conceptual framework for establishing accounting standards. In
addition, high-quality international accounting requires both
high-quality accounting standards and high-quality auditing. Similar to
the convergence of U.S. GAAP and IFRS, there is a movement to
improve international auditing standards. The International Auditing
and Assurance Standards Board (IAASB) functions as an independent
standard-setting body. It works to establish high-quality auditing and
assurance and quality-control standards throughout the world. Whether
the IAASB adopts internal control provisions similar to those in SOX
remains to be seen. You can follow developments in the international
audit arena at http://www.ifac.org/laasb/.
7-41
LO 4
A Look at IFRS
IFRS Self-Test Questions
Information in a companys first IFRS statements must:
a. have a cost that does not exceed the benefits.
b. be transparent.
c. provide a suitable starting point.
d. All the above.
7-42
A Look at IFRS
IFRS Self-Test Questions
Indicate which of these is false.
a. The use of subsidiary ledgers is the same under IFRS
and GAAP.
b. GAAP and IFRS use the same accounting principles.
c. The use of special journals is the same under IFRS
and GAAP.
d. At conversion, companies should retrospectively adjust
the financial statements presented following IFRS.
7-43
A Look at IFRS
IFRS Self-Test Questions
The transition date is the date:
a. when a company no longer reports under its national
standards.
b. when the company issues its most recent financial
statement under IFRS.
c. three years prior to the reporting date.
d. None of the above.
7-44
Copyright
Copyright 2013 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for
errors, omissions, or damages, caused by the use of these
programs or from the use of the information contained herein.
7-45