Mechanics of Accounting Data Processing

Date: 2015-10-07; view: 478.

Accounting processing of data includes the identification, collection, classification, aggregation, reclassification, summarization, and communi­cation of significant economic data. The processing may be performed manually, mechanically, or electronically. The three methods differ in more than the mechanics of processing, however, for the data which are processed tend to vary with the processing methods used. That is, the substance of accounting information tends to vary with the pro­cessing method used.

For hundreds of years, accounting data have been processed man­ually. As business has developed and the need for more extensive pro­cessing of data has arisen, mechanical processing has become common­place, and adding machines, calculators, accounting machines, and punched card systems have become part of the accounting mecha­nism. Mechanical processing of data is, of course, a relatively recent development but it had scarcely proven itself before electronic pro­cessing came into being. Electronic data processing is expanding rapidly and undoubtedly will be used much more in the future. In fact, electronic data processing promises to expand the scope of accounting information so that external as well as internal information will be reported. That is, the informational needs of management include infor­mation on government policies, general economic developments, cus­tomers' attitudes, and other developments external to the company. There is a need for a systematic way of identifying, collecting, classifying, summarizing, and communicating this information. Electronic data processing may enable accountants to include this type of infor­mation as part of the substance of accounting. In addition, electronic data processing may enable accountants to process a greater amount of information on company activities. However, all three methods of processing accounting data are used today.

Notes:

Answer the following questions:

e) What does accounting data processing include?

f) How may the processing be performed?

g) Does the substance of accounting information depend on the processing method used?

h) What has become the accounting mechanism when manual processing was substituted for?

i) What came into being after mechanical processing of data?

j) What are the advantages of electronic data processing?

k) Are all three methods of processing accounting data used today?

X. Read and translate the following text: