Summarize the primary information flows within the business environment, and evaluate the relationship between traditional accounting records and their magnetic equivalents in computer-based systems.
Information Flows And Recording The Transactions
Before the existence of computer system information was manually generated and recorded. This process has consumed lot of time, efforts and resources. Therefore, there was a need to introduce a computer-based information system to overcome these problems.
Answer and Explanation:
The primary information flows within the organization were by using paper documents but now the computer has changed the way the information used to flow within the organization. Now, the information is generated electronically. This has completely changed the accounting.
Where traditional accounting involved recording transaction, passing journal entries, making ledger posting, preparing trial balance, profit & loss a/c and balance sheet. Now the transaction effected digitally is automatically recorded using more advanced accounting software that has decreased the chances of error and increased the cost-effectiveness.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from UExcel Business Information Systems: Study Guide & Test PrepChapter 12 / Lesson 2