Submit Express Inc.Search Engine Marketing

what is accounting?

Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof

Etymology

The word "Accountant" is derived from the French word Compter, which took its origin from the Latin word Computare. The word was formerly written in English as "Accomptant", but in process of time the word, which was always pronounced by dropping the "p", became gradually changed both in pronunciation and in orthography to its present form

History of accounting

The earliest accounting records were found amongst the ruins of ancient Babylon, Assyria and Sumeria, which date back more than 7,000 years. The people of that time relied on primitive accounting methods to record the growth of crops and herds. Because there is a natural season to farming and herding, it is easy to count and determine if a surplus had been gained after the crops had been harvested or the young animals weaned

Islamic accounting

In the Qur’an, the word "account" (Arabic: hesab) is used in its generic sense, relating to one's obligation to account to God on all matters pertaining to human endeavour. According to the Qur’an, followers are required to keep records of their indebtedness (Sura 2, ayah 282), thus Islam thus provides general approval and guidelines for the recording and reporting of transactions

Accounting systems

Accounting systems are becoming increasingly granular. Early accounting systems would record access to specific computing systems. Modern accounting systems are able to record access to specific menu items or database cells.

25 Okt 2010

Accounting Information System

03.40 iphand

An accounting information
system is designed to record all
transactions of a business. An
accounting clerk enters all
business transactions into the
program and the transactions
automatically are posted to the
corresponding accounts. This is
important because any time
information is needed, it can
found on the computer and is
organized.
Accounts Payable
An accounting information
system allows for easier
payments made on accounts
payable. Many systems are
designed to pay all bills due with
a click of a button. A date is
selected and checks are
automatically made out for all
bills due. Most systems allow a
clerk to unselect certain bills if a
company is not ready to pay a
specific bill.
Accounts Receivable
This type of system also allows
for easier billing. Information is
recorded on the system and a
clerk chooses when to print bills.
This is done daily, weekly or
monthly, depending on the
business. The system generates
all bills efficiently and easily for
the clerk.
Financial Statements
An accounting information
system generates all financial
reports without the clerk
calculating anything. The dates
for the reports are entered into
the system and the computer
generates reports for that
specific period. This comes in
handy when a report from a
different period is needed
immediately. The system has the
capability of producing reports
for any period that the
information was recorded for.
Year-End Closing
Year-end closing is often a
tedious process for an
accountant. An unadjusted trial
balance is created, adjusting
entries are made and recorded,
an adjusted trial balance is
calculated, closing entries are
made, and, finally, a post-closing
trial balance is generated. This
process is complicated and time
consuming, but with an
accounting information system,
the computer does most of the
work on its own.