Accounting Information System Overview -Lecture 1

Accounting information system an overview

Accounting Information System an overview

Accounting information system ,e commerce and accounting information system case study solutions course is being taught in many university at undergraduate level to BBA.BCOM. MCOM, MIT, and many other classes.

Similarly In this category we will provide you best handouts of accounting information system course , AIS and E commerce from best recommend books like Addy Vassen, and Daniel.

Moreover Handouts will be the best source of preparation and learning.

What is Accounting?

It is the study which helps to measure ,record,identify and communicate with financial information for summarizing and verifying organization assets and its expanses. Moreover it reveals profit or loss for a given period, and the value and nature of a firm’s assets, liabilities and owners’ equity.

Information- processed form of data used for decision making. Information minimizes uncertainty

System- A System is a set of two or more interrelated and dependent components that interact to each other to achieve a goal. Moreover these components may be referred as a subsystem that performs a specific function important to and supportive part of the larger system. For example, A College has different subsystems like admission, examination, library, payroll etc.

What is Information System?

A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization.

Types of Information System

The “classic” view of Information systems found in the different textbooks consists of a pyramid of systems that relates the levels of employees of an organization, usually transaction processing systems at the bottom of the pyramid, followed by management information systemsdecision support systems, and ending with executive information systems at the top. Although the pyramid model remains useful, since it was first formulated a number of new technologies have been developed and new categories of information systems have emerged, however some of which no longer fit easily into the original pyramid model.

Accounting Information System (AIS)

An accounting information system (AIS) is a system of collecting, storing and processing financial and accounting data that is used by [decision maker]]s. Moreover an accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.

Components of an AIS

An AIS consists of five components:

  1. People who operates the system and perform different functions
  2. The procedures, both manual and automated/computerized, used for collecting, processing and storing data about the organization.
  3. All data about the organization’s business processes.
  4. The software used to process the organization data.
  5. Information technology infrastructure, including computers, peripherals devices and Information communication technology (ICT) devices.

Functions of AIS

Similarly AIS is used to accomplish three important functions of an organization:

  1. Collecting and storing data about the business activities of the process. For example recording of data when an agent performs participate in different activities of some events and affects resourece(s). Moreover this will help management, employees and interested outsiders to review what had happened.
  2. Transferring data into information that is mandatory for decision making that is key requirement of management to plan, execute and control activities.
  3. Provide suitable controls to safeguard the assets including its data to ensure data is available when needed and accurate and reliable.

Why AIS is essential

  1. AIS is essential for accomplishment of long run success
  2. It is also useful for recording of events provide monitoring of performance of an organization
  3. Accounting Information System is also used for the tracking of effects of events on resources under control
  4. For storing information of agents who are responsible of action taken

There are many functions of accounting information system . Similarly The functions offered by accounting information system are now available in many accounting information system software. Moreover You can use accounting information system software to accomplish or to complete your different accounting information system projects.


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Author: Habibullah Qamar

Its me Habib Ullah Qamar working as a Lecturer (Computer Sciences) in Pakistan. I have an MS(M.Phil) degree in computer sciences with specialization in software engineering from Virtual University of Pakistan Lahore. I have an experience of more than 15 years in the filed of Computer Science as a teacher. Blog Writing is my passion. I have many blogs, This one is special made with the aim of providing 100% Free online coaching and training to the students of under-graduate and postgraduate classes. Most of the students enrolled in computer sciences, information technology, software engineering and related disciplines find it difficult to understand core concepts of programming and office automation. They find difficult in understanding and solving their assignments.

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