Electronic Processing of Data

Date: 2015-10-07; view: 481.

Mechanical processing of data has improved record keeping and ac­counting reporting and has reduced the costs of processing data. Computers provide still greater improvements in these areas and broken the role of accounting in the control and planning functions. The collec­tion of accounting data for electronic processing involves the same basic procedures as are used in manual and mechanical processing, but electronic processing lessens the amount of manual effort and expands the types of reports that accountants can develop. By electronic processing of data, it becomes possible to collect and process all data needed for reports on all types of business actions. In fact, the full use of the capacity of electronic data processing tends to transform the accounting records into a total business information system that provides information tor decisions and actions at all levels and for all areas of activities, both internal and external. Implementing an accounting system of this type is most complex, and involves preliminary studies of:

1. The information needs of all segments interested in a business entity.

2. The sources which may be used to collect data, and analyses to indicate the reliability of the data from the different sources.

3. Methods of analysis which will convert data into information ap­propriate for different purposes.

4. The electronic equipment to be used to carry out the processing required to develop all the needed informational reports.

Despite its complexity, an electronic data processing system involves only three basic operations:

1. Putting data into the system (the input function).

2. Operating on the data (the processing function).

3. Extracting information from the system (the output function).

Preliminary work involves collecting data on transactions and documentary evidence of economic activity. This information may then be transmitted to the computer by such media as:

1. Magnetic tape.

2. Magnetic ink characters.

3. Diskettes

Since the computer does not understand the English language, the data collected must be stated in terms of another language before they are submitted to the computer. The COBOL language is often used for this purpose, but even COBOL is not "understood" by the computer operating unit. It must be translated into a machine language, by the machine, and in the machine language the data are inserted into the computer.

Upon receipt of the accounting transactions data, the computer system stores it for future use in computing or reporting purposes. Typically, this information is stored in such devices as a:

1. Magnetic core.

2. Magnetic drum.

3. Magnetic disk.

This information can be withdrawn into the processing section of the computer as directed by programmed instructions. These instructions also tell the computing unit what to do with the extracted material. Ba­sically, the computing unit can compare two types of things and perform the operations of addition, subtraction, multiplication, and division. But from these basic operations, a detailed ledger may be maintained which is constantly up to date. Also, depreciation may be computed and re­corded, inventories may be costed in detail according to any type of inventory method, and so on. The computer can then perform every operation manually performed in a formal journal or ledger.

By withdrawing information from past storage, combining it with new data inputs, and processing the results, the computer develops new information which must be reported to users (the output function). This reporting may be done by such media as:

1. Magnetic tape

2. Diskettes

3. Printed information on paper in such form and arrangements that it can be understood by the user.

Details of methods for electronic processing of accounting data are varied, according to the type of machine used, but EDP is a very effective method for processing accounting data.

Answer the following questions:

1. What do computers provide in electronic data processing (EDP)?

2. What procedures are used in electronic processing of data?

3. What does the full use of the capacity of EDP tend?

4. Implementing an accounting system is most complex and what do preliminary studies involve?

5. What three basic operations does an electronic data processing system involve?

6. What does preliminary work involve?

7. What may the information be transmitted to the computer by?

8. What language is used in the computer before the data are submitted to it?

9. Where is the information stored upon receipt of accounting transactions data for future use?

10. What are the functions of programmed instructions?

XVII. Very oftn in written business English when you give the other person information which may seem negative or unhelpful you use unfortunately. In the same situation in spoken English we use I'm afraid.

Will you be able to suply by return? – I'm afraid we won't.

Have you received our order yet? – I'm afraid we haven't.

Can he ring me back before 5? – I'm afraid he can't.

Answer the questions using I'm afraid:

1. Is Mr. Peel Available, please?

2. Do you need further supplies yet?

3. Will you need any more before the end of the quarter?

4. Have you made a definite decision yet?

5. Would you be able to give us 7% rather than 5%?

6. Are the terms acceptable?

7. Have I remembered all the details?

8. Was the colour satisfactory matched?

9. I hope the goods arrived on time?

10. Will Mrs. Peters be back today?

11. Are you taking a stand at the fair this year?

12. Have you had a chance to speak to your colleagues yet?

13. You might have got one already (you have).

14. You may prefer to stay with your regular suppliers (you would).

Notice that in the last two examples the answer is grammatically positive but will be interpreted as negative. For this reason it is still appropriate to use I'm afraid.

XVIII. Very often in business the pasive is preferred:

NOT They held a meeting last week

BUT A meeting was held last week

Change these sentences into passive. Sometimes you will have to make other small changes too.

1. They have exported 30% of their production.

2. They are installing a new heating system.

3. We would appreciate your help in this matter.

4. They decided not to increase prices by more than 3%.

5. They showed him round the factory.

6. The Customs will examine the packages.

7. We have to consult the unions.

8. They fixed the date of the next meeting for November 11^th.

9. They read and approved the Minutes and the Chairman signed them.

10. Increased oil prices have caused a lot of headaches for industry.

11. One can question the accuracy of these figures.

12. We can arrange special facilities with our bank.

13. We would appreciate settlement within two weeks.

14. We enclose our latest brochure.

15. We have no record of having received these goods.

16. We have always paid promptly.

XIX. Choose the correct alternatives in each of the following sentences paying attention to the use of plurals, singulars and uncountables:

1. We would be greatful for your (advice, advices) on this matter.

2. Thank you for the (information, informations) concerning the schedule.

3. Could you supply the usual bank and trade (reference, references)?

4. Please accept our sincere (apology, apologies) for the delay.

5. We have excellent storage (facility, facilitites).

6. The annual (account is, accounts are) submitted to the Auditors by January 31^st.

7. We close our (book, books) on June 30 for the financial year.

8. We may draw your attention to the (content, contents) of our letter of June 4.

9. At least it will make a contribution to (overhead, overheads).

10. (Profit has, profits have) fallen in the last quarter.

11. I understand they are in (debt, debts) at the moment.

12. If you let us have a note of your (expense, expenses) we will be glad to reimburse you.

13. The (possibility, possibilities) for expansion (is, are) endless.

14. (Business is, businesses are) very slow at present.

15. We have no (knowledge, knowledges) of the proposal to increase import duty.

16. The Customs usually charge (duty, duties) even on small packages.

17. We have made substantial (progress, progresses) since we last wrote to you.

18. We could, on this occasion, accept payment in foreign (currency, currencies).

19. The parcel must be open, tied with (string, strings) not sealed with tape.

20. The (packaging, packagings) must be waterproof.

[1] В.Сопко. Бухгалтерський облік. Київ, 1999