7/28/2019 BSA1281

1/12

Inaccurate accounting records often

contribute to business failures. Failure to

understand accounting information can

result to poor business decision.-G.V.Lising Jr.

Fundamentals of Information

Systems and Systems Development

Introduction

7/28/2019 BSA1281

2/12

Information

Non-quantitative Information

Quantitative Information

Non-accounting Information Accounting Information

Operating Information

Financial Accounting

Management Accounting

Tax Accounting

7/28/2019 BSA1281

3/12

THENEEDFORINFORMATION

QUANTITATIVE is information that isexpressed in numbers

NON QUANTITATIVE samples are visualimpressions, conversations, television progsetc

Accounting is primarily concerned withQUANTITATIVE INFO

7/28/2019 BSA1281

4/12

Accounting is one of the several types ofquantitative information

Four categories of information

operating information

financial accounting information management accounting information

tax accounting information

7/28/2019 BSA1281

5/12

INFORMATION

Non-quantitativeinformation

Quantitative information

Accountinginformation

Operatinginformation

Financialaccounting

Managementaccounting

Tax accounting

Non accountinginformation

7/28/2019 BSA1281

6/12

OPERATING INFORMATION constitutes by far

the largest quantity of accounting

information.

FINANCIAL ACCOUNTING INFORMATION isintended 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.

7/28/2019 BSA1281

7/12

MANAGEMENT ACCOUNTING INFORMATION

accounting information specifically prepared

to aid managers. This information is used in

three management functions

planning

implementation

control

7/28/2019 BSA1281

8/12

PLANNING

is the process of deciding what actionsshould be taken care in the future.

An important form of planning isBUDGETING the process of planningoverall activities of the organization for aspecified period of time, usually a year. A

primary objective of budgeting is tocoordinate the separate plans made forvarious segments of the organization soas to ensure that these plans harmonize

with each other

7/28/2019 BSA1281

9/12

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 theproblem or opportunity

analyzing the consequences of eachalternative

comparing these consequences

7/28/2019 BSA1281

10/12

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

7/28/2019 BSA1281

11/12

System Set of detailed methods, procedures, and

routines established or formulated to carryout a specific activity, perform a duty, or solve

a problem.BusinessDictionary.com

Elements of System

Inputs and outputs

Processor

Control

Environment

Feedback

Boundaries/interface

7/28/2019 BSA1281

12/12

Planning Implementation Control

Planrevision

Appropriateaction

Feedback