Question

How is blockchain useful for accounting information systems (AIS)?

Answer 1

The block chain means dividing the entire data into blocks and by connecting each and every block the information can be understand to the user of the system or block chain system.

Uses of block chain system for accounting information systems

1. In the accounting system the entire data is segregated as blocks based on their nature .

2. These blocks are arranged as per their nature and collectively the information is useful to the user of the system

3. In accounting we have many types of data and those data cannot be mugged up and does not leads to confusion in understandability.

4. For preparation of financial statements of the organisation the segregated data is very important i.e the assets information and liabilities

5. In financial statements the items should be classified as per there nature if we make this as per blocks then those are very helpful at the time of preparation of financial statements i.e in depth fixed assets and current assets and equity and current liabilities.

6. In this type of system the maintenance of journal and ledgers and trial balances and financial statements are also segregated .

7 if any user asked for the specific data then it is very helpful to give that data to them very quickly.

These are some of the benefits of using block chain in accounting information systems.

I hope, all the above mentioned points and explanations are useful and helpful to you.

Thank you.