Tag: elements of accounts

The output device is assigned task of translating the processed data from machine coded form to a human readable form. Recently, a new device being perfected is the speech synthesizer, which is capable pf producing verbal output that sounds like human speech.

The control unit is entrusted with the responsibility of controlling and coordinating the activities of all other units of the computer system. Specifically, it performs the following functions:
a. Read instructions out of memory unit;
b. Decode such instructions;
c. set up the routing of data, through internal circuitry/wiring to the desired place at right time; and
d. Determine the input device from where to get next instructions after the instructions in hand has been executed.

The output device is assigned the task of translating the processed data from machine coded form to a human readable form. The commonly used output devices include: external devices like monitor also called as Visual Display Unit (VDU), printer, graphic plotter for producing graphs etc.

Data validation ensures the accuracy and reliability of input data by comparing the same with some predetermined standards or known as data. This validation is performed by error detecting and error correction procedures. 

A transaction could be internal or external. When a department requisitions material supplies from store, an internal transactions is said to have occurred. However, when the purchase department purchases materials from a supplier, an external transaction take place. The scope of financial accounting is confined to external transactions only.

Central processing unit is the main part of the computer hardware that actually processes data according to instructions it receives. It controls the flow of data by directing the data to enter the system, places the data into its memory, retrieves the same as and when needed and directs the output of data according to a set of stored instructions. Hence, CPU is also called as brain of computer.

Data validation ensures the accuracy  and reliability of input data by comparing the same with some predetermined standards or known data. This verification is performed by error detection and error correction procedures.

Transaction Processing Systems (TPS) are among the earliest computerised systems catering to the requirements of large business enterprises. The purpose of typical TPS is to record, process, validate and store transactions that occur in the various functional area of a business for subsequent retrieval and usage.

Real-time processing provides offline outcome in the form of information and reports without time lag between the transaction and its processing. The accounting reports are generated by query language popularly called Structured Query Language (SQL).

Accounting Information System (AIS) identifies, collects, processes, and communicates economic information about an entity to a wide variety of users. Every accounting system is essentially a part of the Accounting Information System (AIS) which in turn is a part of the broader system, viz. the organisation's Management Information System.