Info System

Anthony D.J. Matutino

Fundamentals of Information Systems and Systems DevelopmentIntroduction

“Inaccurate accounting records often contribute to business failures. Failure to understand accounting information can result to

poor business decision.” -G.V.Lising Jr.

Information System

Information

Non-quantitative Information Quantitative Information

Non-accounting Information Accounting Information

Operating Information Financial Accounting Management Accounting Tax Accounting

The need for information

quantitative – is information that is expressed in numbers

non quantitative – samples are visual impressions, conversations, television progs etc

accounting is primarily concerned with QUANTITATIVE INFO

Accounting is one of the several types of quantitative information

Four categories of information operating information financial accounting information management accounting information tax accounting information

INFORMATION

Non-quantitative information Quantitative information

Accounting information

Operating information

Financial accounting

Management accounting

Tax accounting

Non accounting information

OPERATING INFORMATION constitutes by far the largest quantity of accounting information.

FINANCIAL ACCOUNTING INFORMATION is intended for both managers and also for the use of parties external to the organization, including shareholders (and trustees) in profit organizations), banks, and other creditors, government agencies, investment advisers, and the general public.

MANAGEMENT ACCOUNTING INFORMATION – accounting information specifically prepared to aid managers. This information is used in three management functions

planning implementation control

PLANNINGis the process of deciding what actions should be taken care in the

future.

An important form of planning is BUDGETING – the process of planning overall activities of the organization for a specified period of time, usually a year. A primary objective of budgeting is to coordinate the separate plans made for various segments of the organization so as to ensure that these plans harmonize with each other

Planning involves making DECISIONS recognizing the problem specifying and ranking the criteria to be used to determine the

best solutions identifying alternative ways of addressing the problem or

opportunity analyzing the consequences of each alternative comparing these cosequences

IMPLEMENTATION – making plans does not itself ensure that managers will implement the plans. Each manager also must make more detailed implementation plans to encompassed in the budget

CONTROL – manage / perform properly

Accounting information is used in the control process

as means of communication motivation attention getting appraisal

System

Set of detailed methods, procedures, and routines established or formulated to carry out a specific activity, perform a duty, or solve a problem. –BusinessDictionary.com

Elements of System

Inputs and outputs Processor Control Environment Feedback Boundaries/interface

Planning Implementation Control

Plan revision

Appropriate action

Feedback

Acknowledgement and Sources: Fundamentals of Accounting by Agamata &

Berbano Accounting: Text and Cases by Robert N.

Anthony Accounting Principles by Kieso and Weygant Basic Accounting by G.V.Lising Jr BDO International Deloitte (www.iasplus.com) Wikipedia (http://en.wikipedia.org) BusinessDictionary.com

Thank you!