Question

Illustrate the data processing cycle and explain each phase in relation to an accounting information system with appropriate example at each stage.

DATA -(INPUT)- Processing (storage)-Output- Information

Answer 1

Data is like a garbage. You'd better know what you are going to do with it before you collect it.

Data processing is simply the conversion of Raw data to meaningful information through a process. Data is technically manipulated to produce results that lead to a resolution of a problem or an improvement of an existing situation.

Input - input is the task where verified data is coded or converted into machine readable form so that it can be processed through an apolapplica. Data entry is done through keyboard scanner etc or data entry from an existing resources. This process requires speed and accuracy.

Eg- converting paoer files into digital records.

Processing - after accounting information has been input into the accounting system it must be processed. Processing accounting data involved calcilcalcu, classification, summerizasumm and consolidation.

Output - an accounting information systems generates many different types of output. Some of the output of the accounting information system as documents exchanged with trading partners such as customers and vendors.