Ch05 Accounting Systems and Internal Controls, intro accounting, 21st edition warren reeve fess eng

ChapterChapter 55
Accounting Systems andAccounting Systems and
Internal ControlsInternal Controls
Accounting, 21st
Edition
Warren Reeve Fess
PowerPoint Presentation by Douglas Cloud
Professor Emeritus of Accounting
Pepperdine University
© Copyright 2004 South-Western, a division
of Thomson Learning. All rights reserved.
Task Force Image Gallery clip art included in this
electronic presentation is used with the permission of
NVTech Inc.

Some of the action has been automated,
so click the mouse when you see this
lightning bolt in the lower right-hand
corner of the screen. You can point and
click anywhere on the screen.
Some of the action has been automated,
so click the mouse when you see this
lightning bolt in the lower right-hand
corner of the screen. You can point and
click anywhere on the screen.

1. Define an accounting system and
describe its implementation.
2. List the three objectives of internal
control, and define and give examples of
the five elements of internal control.
3. Journalize and post transactions in a
manual accounting system that uses
subsidiary ledgers and special journals.
ObjectivesObjectivesObjectivesObjectives
After studying thisAfter studying this
chapter, you shouldchapter, you should
be able to:be able to:
After studying thisAfter studying this
chapter, you shouldchapter, you should
be able to:be able to:

4. Describe and give examples of additional
subsidiary ledgers and modified special
journals.
ObjectivesObjectivesObjectivesObjectives
5. Apply computerized accounting to the
revenue and collection cycle.
6. Describe the basic features of e-commerce.

BasicBasic
AccountingAccounting
SystemSystem
BasicBasic
AccountingAccounting
SystemSystem

ImplementationImplementation
DesignDesign
AnalysisAnalysis
FF
EE
EE
DD
BB
AA
CC
KK

Objectives of InternalObjectives of Internal
ControlControl
Objectives of InternalObjectives of Internal
ControlControl
1. assets are safeguarded and used
for business purposes.
2. business information is accurate.
3. employees comply with laws and
regulations.
To provide reasonable assurance that:

1. Control environment
2. Risk assessment
3. Control procedures
4. Monitoring
5. Information and communication
Elements of Internal ControlElements of Internal Control

Management philosophy and
operating style influences the
control environment.
Management philosophy and
operating style influences the
control environment.

1. Control environment
2. Risk assessment
3. Control procedures
4. Monitoring
5. Information and communication
Elements of Internal ControlElements of Internal ControlElements of Internal ControlElements of Internal Control

Once risks are identified, they can be
analyzed to estimate their significance, to
assess their likelihood of occurring, and to
determine actions that will minimize them.
Once risks are identified, they can be
analyzed to estimate their significance, to
assess their likelihood of occurring, and to
determine actions that will minimize them.

Control ProceduresControl ProceduresControl ProceduresControl Procedures
 Competent Personnel
 Rotating Duties
 Mandatory Vacations
 Separating Responsibilities for
Related Operations
 Separating Operations,
Custody of Assets, and
Accounting
 Proofs and Security Measures

SeparatingSeparating
Responsibilities forResponsibilities for
Related OperationsRelated Operations
SeparatingSeparating
Responsibilities forResponsibilities for
Related OperationsRelated Operations1. Orders may be placed on the basis of
friendship with a supplier, rather than on
price, quality, and other objective factors.
2. The quantity and quality of supplies received
may not be verified, thus causing payment
for supplies not received or poor-quality
supplies.
3. Supplies may be stolen by the employee.
4. The validity and accuracy of invoices may be
verified carelessly.
Otherwise, the followingOtherwise, the following
abuses are possible:abuses are possible:
Otherwise, the followingOtherwise, the following
abuses are possible:abuses are possible:

Independent
check
Independent
check
Independent
check
Custody ofCustody of
AssetsAssets
AccountingAccountingOperationsOperations

Clues to Potential ProblemsClues to Potential ProblemsClues to Potential ProblemsClues to Potential Problems
1. Abrupt changes in lifestyle.
2. Close social relationships with suppliers.
3. Refusing to take a vacation.
4. Frequent borrowing from other employees.
5. Excessive use of alcohol or drugs.
Warning signs with regard to people:

1. Missing documents or gaps in transaction
numbers.
2. An unusual increase in customer refunds.
3. Differences between daily cash receipts and
bank deposits.
4. Sudden increase in slow payments.
5. Backlog in recording transactions.
Warning signs from the accounting system:
Clues to Potential ProblemsClues to Potential ProblemsClues to Potential ProblemsClues to Potential Problems

Cash 11
Accts. Pay. 21
General Ledger
Accts. Rec. 12
Supplies 14
General Ledger and Subsidiary LedgersGeneral Ledger and Subsidiary LedgersGeneral Ledger and Subsidiary LedgersGeneral Ledger and Subsidiary Ledgers
Accounts Receivable
Subsidiary Ledger
A B C D
Customer Accounts
Accounts Payable
Subsidiary Ledger
A B C D
Creditor Accounts

BUYINGBUYING
SELLINGSELLING
Special Journals
Providing services on account
Revenue journalRevenue journalrecorded inrecorded in
Receipt of cash from any source
Cash receipts journalCash receipts journalrecorded inrecorded in
Purchase of items on account
Purchases journalPurchases journalrecorded inrecorded in
Payment of cash for any purpose
Cash payments journalCash payments journalrecorded inrecorded in

The Revenue JournalThe Revenue JournalThe Revenue JournalThe Revenue Journal
All sales on account are recorded inAll sales on account are recorded in
this journal. Each sales invoice isthis journal. Each sales invoice is
listed in numerical order.listed in numerical order.
All sales on account are recorded inAll sales on account are recorded in
this journal. Each sales invoice isthis journal. Each sales invoice is
listed in numerical order.listed in numerical order.
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6

Revenue Journal
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
Performed services on credit toPerformed services on credit to
MyMusic.com, $2,200.MyMusic.com, $2,200.
Performed services on credit toPerformed services on credit to
MyMusic.com, $2,200.MyMusic.com, $2,200.
2006
Mar. 2 615 MyMusicClub.com 2 2 0 0 00

Revenue Journal
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
Notice that only one line isNotice that only one line is
required to make the entry.required to make the entry.
Notice that only one line isNotice that only one line is
required to make the entry.required to make the entry.
2006

Posting from the Revenue JournalPosting from the Revenue JournalPosting from the Revenue JournalPosting from the Revenue Journal
Revenue Journal
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
To update the MyMusicClub.com account,To update the MyMusicClub.com account,
the $2,200 debit is posted to the accountsthe $2,200 debit is posted to the accounts
receivable subsidiary ledger.receivable subsidiary ledger.
To update the MyMusicClub.com account,To update the MyMusicClub.com account,
the $2,200 debit is posted to the accountsthe $2,200 debit is posted to the accounts
2006

Revenue Journal
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
2006
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
MyMusicClub.com
Mar. 2 R35 2,200 2,200
2006

Revenue Journal
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
2006
MyMusicClub.com
Mar. 2 R35 2,200 2,200
2006
This procedure is repeated for each postingThis procedure is repeated for each posting
to the accounts receivable subsidiary ledger.to the accounts receivable subsidiary ledger.

Revenue Journal
Page 35
1
2
3
4
5
6
2003
1
2
3
4
5
6
Assume that similar entries wereAssume that similar entries were
journalized and posted during thejournalized and posted during the
month of March.month of March.
Assume that similar entries wereAssume that similar entries were
journalized and posted during thejournalized and posted during the
month of March.month of March.
6 616 RapZone.com 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 MyMusicClub.com 3 0 0 0 00
2006

Revenue Journal
Page 35
1
2
3
4
5
6
2006
1
2
3
4
5
6
6 616 RapZone.com 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
On March 31, the revenue journal isOn March 31, the revenue journal is
totaled and ruled.totaled and ruled.
On March 31, the revenue journal isOn March 31, the revenue journal is
totaled and ruled.totaled and ruled.
31 9 6 0 0 00

Revenue Journal
Page 35
1
2
3
4
5
6
2006
1
2
3
4
5
6
6 616 RapZone.com 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
Next, the revenue journal’s totalNext, the revenue journal’s total
($9,600) is posted to the general ledger.($9,600) is posted to the general ledger.
Next, the revenue journal’s totalNext, the revenue journal’s total
($9,600) is posted to the general ledger.($9,600) is posted to the general ledger.
31 9 6 0 0 00
Posting the Revenue Journal TotalPosting the Revenue Journal TotalPosting the Revenue Journal TotalPosting the Revenue Journal Total

ACCOUNT Accounts Receivable Account No. 12
Balance
Dr. Cr.
Date Dr. Cr.Item
Post.
Ref.
2006
Mar. 1 Balance 3 400 00
GENERAL LEDGER
31 9 600 00 13 000 00R35
Revenue Journal, page 35

By placing the account number here, we
indicate that $9,600 has been debited to
Accounts Receivable in the general ledger.
Revenue Journal
Page 35
1
2
3
4
5
6
2006
1
2
3
4
5
6
6 616 RapZone.com 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
31 9 6 0 0 00
(12)(41)

ACCOUNT Fees Earned Account No. 41
Balance
Dr. Cr.
Date Dr. Cr.Item
Post.
Ref.
GENERAL LEDGER
2006
Mar. 31 R35 9 600 00 9 600 00

Revenue Journal
Page 35
1
2
3
4
5
6
2006
1
2
3
4
5
6
6 616 RapZone.com 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
31 9 6 0 0 00
(12)(41)
Placing “41” here indicates that $9,600 has
been posted to the credit side of Fees
Earned in the general ledger.

The Cash Receipts JournalThe Cash Receipts Journal

All transactions that
involve the receipt of cash
are recorded in the cash
receipts journal.
All transactions that
involve the receipt of cash
are recorded in the cash
receipts journal.
The Cash Receipts JournalThe Cash Receipts JournalThe Cash Receipts JournalThe Cash Receipts Journal

Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNAL
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
NetSolutions received $400 cashNetSolutions received $400 cash
on March 1 for the month’s rent.on March 1 for the month’s rent.
NetSolutions received $400 cashNetSolutions received $400 cash
on March 1 for the month’s rent.on March 1 for the month’s rent.
2006

Other Accounts
During March, NetSolutions collectedDuring March, NetSolutions collected
cash from three customers.cash from three customers.
During March, NetSolutions collectedDuring March, NetSolutions collected
cash from three customers.cash from three customers.
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
Page 14
2006

Each account under “AccountsEach account under “Accounts
Receivable Cr.” is posted to the accountsReceivable Cr.” is posted to the accounts
Each account under “AccountsEach account under “Accounts
Receivable Cr.” is posted to the accountsReceivable Cr.” is posted to the accounts
Posting the Cash Receipts JournalPosting the Cash Receipts JournalPosting the Cash Receipts JournalPosting the Cash Receipts Journal
Other Accounts
19 Web Cantina 3,400 3,400
30 RapZone.com 1,750 1,750
Page 14
2006

Other Accounts
Page 14
19 Web Cantina 3,400 3,400
30 RapZone.com 1,750 1,750
Web Cantina
Mar. 1 Bal. 3,400
18 R35 2,650 6,050
2006
3,400
2,650
2006
19

Other Accounts
Page 14
19 Web Cantina 3,400 3,400
30 RapZone.com 1,750 1,750
Web Cantina
Mar. 1 Bal. 3,400
18 R35 2,650 6,050
2006
3,40019 CR14
2,650
2006
√

After all journalizing and
posting to the accounts
receivable subsidiary ledger for
the month is complete, the
columns are totaled.
After all journalizing and
posting to the accounts
receivable subsidiary ledger for
the month is complete, the
columns are totaled.

19 Web Cantina √ 3,400 3,400
28 MyMusicClub.com √ 2,200 2,200
30 RapZone.com √ 1,750 1,750
31 400 7,350 7,750
Other Accounts
Page 14
2006
The total “Cash Dr.” columnThe total “Cash Dr.” column
equals the total of the twoequals the total of the two
credit columns.credit columns.
The total “Cash Dr.” columnThe total “Cash Dr.” column
equals the total of the twoequals the total of the two
credit columns.credit columns.

19 Web Cantina √ 3,400 3,400
30 RapZone.com √ 1,750 1,750
31 400 7,350 7,750
Other Accounts
Page 14
The three circled items areThe three circled items are
posted to the general ledger.posted to the general ledger.
Let’s postLet’s post Accounts ReceivableAccounts Receivable..
The three circled items areThe three circled items are
posted to the general ledger.posted to the general ledger.
Let’s postLet’s post Accounts ReceivableAccounts Receivable..
2006
Account: Accounts Receivable No. 12
GENERAL LEDGER
Mar. 1 Bal √ 3,400
31 R35 9,600 13,000
2006

19 Web Cantina √ 3,400 3,400
30 RapZone.com √ 1,750 1,750
31 400 7,350 7,750
Other Accounts
Page 14
2006
Account: Accounts Receivable No. 12
GENERAL LEDGER
Mar. 1 Bal √ 3,400
31 R35 9,600 13,000
2006
7,350 5,65031 CR14

19 Web Cantina √ 3,400 3,400
30 RapZone.com √ 1,750 1,750
31 400 7,350 7,750
Other Accounts
Page 14
2006
( ) (12)√

The $7,750 total in the
Cash Debit column is
posted to Cash in a similar
manner.
The $7,750 total in the
Cash Debit column is
posted to Cash in a similar
manner.

The $400 credit to Rent Revenue
could have been posted earlier, but
posting it at the same time as other
general ledger accounts is proper.
The $400 credit to Rent Revenue
could have been posted earlier, but
posting it at the same time as other
general ledger accounts is proper.

A completely posted cash
receipts journal is shown
in the next slide.
A completely posted cash
receipts journal is shown
in the next slide.

19 Web Cantina √ 3,400 3,400
30 RapZone.com √ 1,750 1,750
31 400 7,350 7,750
Other Accounts
Page 14
Posted Cash Receipts JournalPosted Cash Receipts JournalPosted Cash Receipts JournalPosted Cash Receipts Journal
42
( ) (12) (11)
2006
√

AccountsAccounts
ReceivableReceivable
ControlControl
AccountAccount
If the accounts receivable
account in the general ledger
only shows summary totals,
where are the individual
customer balances?
If the accounts receivable
account in the general ledger
only shows summary totals,
where are the individual
customer balances?
ACCOUNT Accounts Receivable No. 12
GENERAL LEDGER
Mar. 1 Bal 3,400
31 R35 9,600 13,000
7,350 5,65031 CR14
√

RapZone.com
3/6 R35 1,750 1,750
3/30 CR14 1,750 ----
Web Cantina
3/2 R35 2,200 2,200
3/27 R35 3,000 5,200
3/28 CR14 2,200 3,0003,000
3/1 Bal. 3,400
3/18 R35 2,650 6,050
3/19 CR14 3,400 2,6502,650
Accounts
Receivable
Subsidiary
Ledger
AccountsAccounts
ReceivableReceivable
ControlControl
AccountAccount
MyMusicClub.com
ACCOUNT Accounts Receivable No. 12
GENERAL LEDGER
Mar. 1 Bal 3,400
31 R35 9,600 13,000
7,350 5,65031 CR14
√

The purchases journal is
designed for recording all
purchases on account.
The purchases journal is
designed for recording all
purchases on account.

On March 3, 2003, NetSolutionsOn March 3, 2003, NetSolutions
purchased supplies from Howardpurchased supplies from Howard
Supplies, $600.Supplies, $600.
Journalizing in the Purchases JournalJournalizing in the Purchases JournalJournalizing in the Purchases JournalJournalizing in the Purchases Journal
PURCHASES JOURNAL
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600
2006

PURCHASES JOURNAL
Accts. Other
Page 11
To keep the accounts payableTo keep the accounts payable
subsidiary ledger current, this entrysubsidiary ledger current, this entry
is posted on March 3.is posted on March 3.
2006
Accounts Payable Subsidiary Ledger
Date Item P.R. Dr. Cr. Balance
Howard Supplies
Mar 3 600 600
2006
Posting the Purchases JournalPosting the Purchases JournalPosting the Purchases JournalPosting the Purchases Journal

PURCHASES JOURNAL
Accts. Other
Page 11
Accounts PayableAccounts Payable andand SuppliesSupplies
will be posted as totals.will be posted as totals.
2006

PURCHASES JOURNAL
Accts. Other
Page 11
On March 7, NetSolutionsOn March 7, NetSolutions
purchased supplies from Donnellypurchased supplies from Donnelly
Supplies, $420.Supplies, $420.
2006
7 Donnelly Supplies 420 420

PURCHASES JOURNAL
Accts. Other
Page 11
2006

PURCHASES JOURNAL
Accts. Other
Page 11
2006
On March 12, NetSolutions purchasedOn March 12, NetSolutions purchased
office equipment from Jewett Businessoffice equipment from Jewett Business
Systems, $2,800.Systems, $2,800.
12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800
Because there isn’t a special column forBecause there isn’t a special column for
Office EquipmentOffice Equipment, this purchase was, this purchase was
recorded under “Other Accounts Dr.”recorded under “Other Accounts Dr.”

PURCHASES JOURNAL
Accts. Other
Page 11
2006
Now, let’s look at the rest of March’s entriesNow, let’s look at the rest of March’s entries
(assume that all postings to the accounts payable(assume that all postings to the accounts payable
subsidiary ledger have been made).subsidiary ledger have been made).
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies 960 960

PURCHASES JOURNAL
Accts. Other
Page 11
2006
At the end of March, all columns are totaledAt the end of March, all columns are totaled
and equality of debits and credits is verified.and equality of debits and credits is verified.
At the end of March, all columns are totaledAt the end of March, all columns are totaled
and equality of debits and credits is verified.and equality of debits and credits is verified.
Totaling the Purchases JournalTotaling the Purchases JournalTotaling the Purchases JournalTotaling the Purchases Journal
31 6,230 3,430 2,800
$6,230 = $3,430 + $ 2,800$6,230 = $3,430 + $ 2,800$6,230 = $3,430 + $ 2,800$6,230 = $3,430 + $ 2,800

The next step is to post to theThe next step is to post to the
general journal.general journal.
PURCHASES JOURNAL
Accts. Other
Page 11
2006
31 6,230 3,430 2,800

PURCHASES JOURNAL
Accts. Other
Page 11
2006
31 6,230 3,430 2,800
ACCOUNT Accounts Payable No. 21
GENERAL LEDGER
Mar. 1 Bal 1,230
6,230 7,46031 P11

PURCHASES JOURNAL
Accts. Other
Page 11
2003
31 6,230 3,430 2,800
GENERAL LEDGER
Mar. 1 Bal 1,230
6,230 7,46031 P11
(21)

PURCHASES JOURNAL
Accts. Other
Page 11
2003
31 6,230 3,430 2,800
(21)
SuppliesSupplies is posted as a total of $3,430is posted as a total of $3,430
to general ledger account 21.to general ledger account 21. OfficeOffice
EquipmentEquipment is posted individually.is posted individually.
(14)
18

PURCHASES JOURNAL
Accts. Other
Page 11
2006
31 6,230 3,430 2,800
(21) (14)
18
( )
NetSolutions had only one entry in theNetSolutions had only one entry in the
“Other Accounts Dr.” column. If there were“Other Accounts Dr.” column. If there were
others, they would be posted individually.others, they would be posted individually.
Therefore, the total is not posted. A checkTherefore, the total is not posted. A check
mark indicates that the total was not posted.mark indicates that the total was not posted.

All payments are
recorded in the cash
payments journal.
NetSolutions makes all
payments by check.
All payments are
recorded in the cash
payments journal.
NetSolutions makes all
payments by check.

Let’s make all of the
cash payment journal
entries for March.
Let’s make all of the
cash payment journal
entries for March.

CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
On March 2, NetSolutions paidOn March 2, NetSolutions paid
the rent for March by issuingthe rent for March by issuing
Check No. 150 for $1,600.Check No. 150 for $1,600.
2006
Mar. 2 150 Rent Expense 1,600 1,600

Other Accounts
PAGE 7
On March 15, issued Check No. 151 toOn March 15, issued Check No. 151 to
Grayco Supplies on account, $1,230.Grayco Supplies on account, $1,230.
2006
15 151 Grayco Supplies 1,230 1,230

Other Accounts
PAGE 7
Let’s post to the accounts payableLet’s post to the accounts payable
subsidiary ledger at this time to keepsubsidiary ledger at this time to keep
the creditor’s account current.the creditor’s account current.
2006
Accounts Payable Subsidiary Ledger
Grayco Supplies
Mar. 3 Bal. 1,230
Date Item P.R. Dr. Cr. Balance
1,230 ---15 CP7
√

Other Accounts
PAGE 7
On March 21, issued Check No.On March 21, issued Check No.
152 as payment on account to152 as payment on account to
Jewett Business Systems, $2,800.Jewett Business Systems, $2,800.
2006
21 152 Jewett Business Sys. 2,800 2,800
√

Other Accounts
PAGE 7
On March 22, issued Check No.On March 22, issued Check No.
153 as payment on account to153 as payment on account to
Donnelly Supplies, $420.Donnelly Supplies, $420.
2006
22 153 Donnelly Supplies. 420 420
√
√

Other Accounts
PAGE 7
On March 30, issued Check No. 154 asOn March 30, issued Check No. 154 as
payment for utility bill, $1,050.payment for utility bill, $1,050.
2006
30 154 Utilities Expense 1,050 1,050
√
√
√

Other Accounts
PAGE 7
On March 31, issued CheckOn March 31, issued Check
No. 155 on account to HowardNo. 155 on account to Howard
Supplies, $600Supplies, $600
2006
31 155 Howard Supplies 600 600
√
√
√

Other Accounts
PAGE 7
The journal is ruled, summed, andThe journal is ruled, summed, and
verified for equality of debits andverified for equality of debits and
the “Cash Cr.” column.the “Cash Cr.” column.
2006
31 2,650 5,050 7,700
√
√
√
√

Individual items in the “Other Accounts Dr.”Individual items in the “Other Accounts Dr.”
column are posted. Then the totals for “Accountscolumn are posted. Then the totals for “Accounts
Payable Dr.” and “Cash Cr.” are posted.Payable Dr.” and “Cash Cr.” are posted.
Other Accounts
PAGE 7
2006
31 2,650 5,050 7,700
(21) (11)
52
54
√
√
√
√
( )√

Accounts PayableAccounts Payable
Accounts Payable
Control
Accounts Payable
Control

Donnelly Supplies
Grayco Supplies
Howard Supplies
Mar 2 P11 420 420
19 P11 1,450 1,870
22 CP7 420 1,450
Accounts
Payable
Subsidiary
Ledger
Accounts PayableAccounts Payable
(Controlling)(Controlling)
GENERAL LEDGER
Mar. 1 Bal 1,230
31 P11 6,230 7,460
31 CP7 5,050 2,410
Mar 1 Bal. 1,230
15 CP7 1,230 0
--
Mar 3 P11 600 600
27 P11 960 1,560
31 CP7 600 960
Jewett BusinessJewett Business
Systems also hasSystems also has
a zero balance, soa zero balance, so
that account wasthat account was
omitted for spaceomitted for space
reasons.reasons.

Advantages of a Computerized
Accounting System Over a
Manual Accounting System
Advantages of a Computerized
Accounting System Over a
Manual Accounting System
1. Computerized systems simplify the record-
keeping process.
2. Computerized systems are generally more
accurate.
3. Computerized systems provide management
current account balance information to
support decision making.

The Revenue and Collection
Cycle in QuickBooks
Cycle in QuickBooks
From Exhibit 10, page 203 of textbook
Mail invoice to
customer

Cycle in QuickBooks Continued
Cycle in QuickBooks Continued
From Exhibit 10, page 203 of textbook

Advanced Areas Where theAdvanced Areas Where the
Internet is Being Used forInternet is Being Used for
Business PurposesBusiness Purposes
Advanced Areas Where theAdvanced Areas Where the
Internet is Being Used forInternet is Being Used for
Business PurposesBusiness Purposes
Supply chain management (SCM)
Customer relationship management (CRM)
Product life-cycle management (PLM)

The EndThe End
Chapter 5Chapter 5

Ch05 Accounting Systems and Internal Controls, intro accounting, 21st edition warren reeve fess eng

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Ch05 Accounting Systems and Internal Controls, intro accounting, 21st edition warren reeve fess eng