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In: Accounting

As a new employee of a local accounting firm, your first client is Orlando University Bookstore....

As a new employee of a local accounting firm, your first client is Orlando University Bookstore. Jack Stone, the manager, would like some advice on several aspects of the bookstore’s accounting information systems. Submit a 2 page report detailing the bookstore’s need for an AIS, the benefits of the system and how this data will be used to create financial reports.

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Expert Solution

An accounting information system collects data, processes it and then communicates the information to its users. It is a very important and useful tool for making decisions and maintaining accurate records.Orlando book store would greatly benefit from it. Not only will it help in keeping a record of books sold, it will also help to keep a record of the books in stock. Furrther, billing shall be made easier with barcode scanning. Time and efforts shall be saved due to adoption of this system.

The benefits of the system are mentioned below:

-The data will have to be keyed in by an accountant and will be automatically posted to the correct account. This will result in a high degree of automation which further results in accuracy.

-The payment for books purchased shall be made much easier , as an accounting information has logics built into the system where all bills are paid on the due date. Manual tracking is not required.

-The receivables for books purchased can also be collected easily. Immediate generation of bills is possible. Further, if books are ever sold on credit, aging of the account is automatically prepared.

-Report generation of various types shall be possible on the click of a button. An AIS is capable of producing different types of report for various periods immediately/

-For the bookstore's month end or year end closing activities, most of the work shall be done by the AIS.

As the data which is input in the system's logic is available at the click of a button, it is possible to present it in various forms using financial reports. Requests can be made by the accountant using the system and financial reports shall be readily available. For example, profit and loss account of a particular period, even a month, can be generated easily.

ekkarill92 answered 1 year ago
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