Question

1. What are the two major reports required of an accounting information system?

2. Why are they required? Discuss in 80–100 words.

Thank you

Answer 1

What are the two major reports required of an accounting information system?

As to Day Business world, Accounting information system occupied crucial rule in generating and analysing the Various reports which is generated by the accounting information. They are many reports which starts from the accounting information to costing and then tax reports then to analysing reports, then to compliance reports then to verification reports but generally some common reports required by all business organisations which constitute a basic information to generate other ancillary reports. Those reports are Sales reports, Purchase reports, Payroll reports, General Expenses reports, Tax Related information…etc

Why are they required?

Sales reports: which consists of Buyer information and Quantity and price details and Item/Inventory Details which represents the Sales Revenue which is occupied highest position in any industry.

Purchase Reports: It consists of what, where, how much quantity that we purchased from different sellers

Payroll information: It is very important for any business as it consists of employee’s salaries and wages paid during the period and accrued or arised during the period.

General Expenses: Which consists of expenses incurred by company while running the business. Every Company must required to produce and analyse the expenditure for controlling Purposes.

Tax Related Information: Tax related information now days very much important in order timely payment and return filling, Failing which result in severe actions by respective Authorities.