Question

Figure 16-1 Context Diagram of the General Ledger and Reporting System

Figure 16-2 Level 0 Data Flow Diagram of the General Ledger and Reporting Cycle (annotated to include threats)

Figure 16-3 Typical Design of Online General Ledger and Reporting System

Answer 1

Solution:-

Figure 16-1 Context Diagram of the General Ledger and Reporting System:-

One of the primary functions of the general ledger and reporting system is to collect and organize data from the following sources:

1. Each of the accounting cycle subsystems described in Chapters 12 through 15 provides information about regular transactions.
2. The treasurer provides information about financing and investing activities, such as the issuance or retirement of debt and equity instruments and the purchase or sale of investment securities.
3. The budget department provides budget numbers.
4. The controller provides adjusting entries.

The general ledger and reporting system must be designed to produce regular periodic reports and to support real-time inquiry needs.

Figure 16-2 Level 0 Data Flow Diagram of the General Ledger and Reporting Cycle (annotated to include threats):-

• Circle 1.0:- Update general ledger
• Circle 2.0:- Post adjusting entries
• Circle 3.0:- Prepare financial statements
• Circle 4.0:- Produce managerial reports

Figure 16-3 Typical Design of Online General Ledger and Reporting System:-

The first three activities in Figure 16-2(Circles 1.0, 2.0, and3.0) represent the basic steps in the accounting cycle, culminating in the production of the traditional set of financial statements.