ACC 229: Accounting Laboratory/Workshop II Practice Flashcards

Comprehensive practice flashcards covering terms, definitions, and concepts from the ACC 229 lecture notes, including computer basics, AIS/MIS, Excel, Sage 50, and IFRS.

ACC 229

The course code for Accounting Laboratory/Workshop II, a compulsory 1-unit course focused on the practical application of computers in preparing financial transactions.

Computer

An advanced electronic device that takes raw data as input from the user, processes it under the control of a set of instructions called a program, and gives the result as output while saving it for future use.

Input

The process of entering raw data and programs into the computer system in an organized manner for processing.

Storage

The process of saving data and instructions permanently in primary or secondary units to provide space before and after processing.

Processing

The task of performing arithmetic and logical operations on data by the Central Processing Unit ($\text{CPU}$) based on specific instructions.

Output

The process of producing results from data to obtain useful information, stored initially inside the computer before being presented in human-readable form.

Arithmetic Logical Unit (ALU)

The functional unit of the computer that performs actual processing of data and instructions, including addition, subtraction, multiplication, division, logic, and comparison.

Control Unit (CU)

The component that acts as a supervisor, coordinating operations using time signals and determining the sequence in which programs and instructions are executed.

Central Processing Unit (CPU)

A combination of the $\text{ALU}$ and the $\text{CU}$, often referred to as the brain of the computer system because it makes major decisions and directs functions.

Real-time Processing

A processing mode where files are updated exactly as transactions occur, such as a cash withdrawal from an $ATM$ immediately updating a bank account.

On-line Processing

A state where files are permanently accessible to be updated by the computer system.

Versatility

The capacity of a computer to perform completely different types of work, such as preparing payroll slips and subsequently managing inventory.

System Software

Background programs that facilitate the optimal use of hardware and provide an environment for running application software, such as the Operating System ($\text{OS}$).

Application Software

Programs designed to perform specific functions for a user, acting as a mediator between the end-user and the system software (e.g., Word-processing or Spreadsheet software).

Data

Raw facts, events, numbers, and transactions that have been collected and recorded but are not yet processed into a meaningful form.

Information

Processed data that has been transformed into a meaningful, coherent, and concise form, often presented as charts, diagrams, or tables.

Quantitative Information

Information dealing with the magnitudes, variability, or absolute values of variables, such as annual sales or prices of goods.

Qualitative Information

Information related to the attributes of an entity in respect to quality factors, often used for comparative measurements like finished product standards.

Information System

A combination of people, hardware, software, and data resources that collects and transforms data to provide managers with information for decision making.

GIGO Effect

Stands for 'Garbage-in Garbage-Out', referring to the concept that feeding wrong data into a system will result in the production of wrong information.

Accounting Information System (AIS)

A system used by business to collect, store, manage, process, and report financial data, typically consisting of people, procedures, data, software, infrastructure, and internal controls.

Management Information System (MIS)

An integrated man-machine system that provides various categories of information (TPS, IPS, DSS) to support managerial planning and control functions.

Transaction Processing System (TPS)

A category of $\text{MIS}$ designed for processing the large volume of day-to-day transactions in an organization, primarily aiding junior-level management.

Decision Support System (DSS)

An interactive model-based system that helps improve the analytical capability of decision makers for real-life situations.

Expenditure Subsystem

An $\text{AIS}$ cycle consisting of activities involved in buying and paying for goods or services used by the organization.

Revenue Subsystem

An $\text{AIS}$ cycle consisting of activities involved in selling goods or services and collecting payment for those sales.

Computerized Accounting System (CAS)

The system of maintaining accounts using computers, involving processing transactions through hardware and software to produce accounting records.

Live-ware

A term used to describe the 'People' component of a computerized accounting system, including system analysts, programmers, and operators.

Connectivity

The component of a computer system that allows two or more computers to share information and resources like files, printers, or internet through cables or satellites.

Accounting Packages

Application software that records and processes accounting transactions within functional modules to produce full financial reports like Profit or Loss statements.

Inventory Sub-System

A module in an accounting package that generates transactions related to the purchase, holding, and issuing of inventories.

Coding

The process of writing instructions in a programming language to solve problems or automate tasks, using specific rules, syntax, and semantics.

Chart of Accounts (COA)

A critical component of financial accounting consisting of a structured list of all Asset, Liability, Equity, Revenue, and Expense accounts in the General Ledger.

Financial Reporting Council of Nigeria (FRCN)

The regulatory body established by the Act of 2011 to develop, publish, and enforce accounting and financial reporting standards in Nigeria.

International Financial Reporting Standards (IFRS)

A global framework of accounting standards developed by the $\text{IASB}$ to enhance transparency, comparability, and reliability of financial information.

Payroll

A list of employees receiving wages or salaries, showing gross earnings, deductions, and the net amount payable for a specific period.

Gross Pay

The total emolument, salary, or weekly wage that an employee earns in a particular period before any statutory or other deductions are made.

Statutory Deductions

Mandatory deductions from gross pay required by law, such as taxes, $\text{ESI}$, and Provident Fund.

Microsoft Excel

An electronic spreadsheet software package used for row and column arithmetic, fast calculations, and data visualization via charts.

Cell

The rectangular box in a spreadsheet at the intersection point between a row and a column.

Sum Function

A predefined formula in Excel with the syntax $\text{SUM}(\text{arguments})$ used to add values or ranges of cells.

Sage 50

A popular accounting software solution available in flavors such as Pro, Complete, Premium, and Quantum, used for electronic financial transaction processing.