1. Define the term ‘information system’.

Information system- Collection of computer hardware & software that can provide decision-making, control or other similar information based on underlying data, as well as capture & process organisational data

2. Distinguish between the different types of accounting information.

Financial accounting- Provides information to external users, typically in the form of summarised financial reports such as the income statement and statement of financial position. The information is based on historical data; a highly regulated branch of accounting.

Management accounting- Concerned with the provision of information to managers to help them make business decisions; management accounting aims to provide more detailed and timely information to internal users of accounting information.

3. How has information systems changed the role of accountants?

In smaller businesses there is reduced fee income for practising accountants & they have to do more analysis

In larger businesses they have more analytical roles & there are more standardised accounting processes

4. Give one typical user of accounting information.

Managers- Require accounting information to assist them in decision-making

5. Give another typical user of accounting information.

Investors (shareholders)- Require accounting information on the value of the investment they have made

6. Give a third typical user of accounting information.

Employees- Require accounting information on the ability of an organisation to meet their wage/salary expectations

7. Give a fourth typical user of accounting information.

Suppliers- Require accounting information to allow them to assess the likelihood of being repaid

8. Give a fifth typical user of accounting information.

Customers- Require accounting information to assess the ability of an organisation to continue supplying products/services

9. Give a sixth typical user of accounting information.

Government & regulatory agencies- Require accounting information to help manage the economy, collect taxes, etc

10. Give one feature of enterprise systems.

It is a standard software package, offering a level of customisation to enable configuration for most business types

11. Give another feature of enterprise systems.

It offers a high level of functionality following a process-oriented view of enterprises

12. Give a third feature of enterprise systems.

It provides a standardised graphical user interface across all application areas & modules, thereby allowing the user to easily work & learn across modules

13. Give one way how developments in accounting information systems has affected the roles of accountants in business.

Less of the mundane bookkeeping/reporting type of work is done, as software can manage a lot of this work

14. Give another way how developments in accounting information systems has affected the roles of accountants in business.

Accountants have taken on a business advisor role

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Lecture 7- Accounting software for smaller businesses