Q1: Computerized System of Accounting
You have been working at a local travel agency as a secretary. Your agency has signed a contract with a local corporate company that will triple current sales revenues. The owner of your agency decides to computerize the accounting system. He realizes you are an accounting major and asks you to meet him to discuss this decision. He specifically wants to know the following:
- The benefits of using a computerized system as compared to the current manual system
- The top two competing software products beneficial in a service industry and the approximate cost of each product
- The kind of training that might be needed by the staff, and which members of the staff should be trained
Q2: The Accounting Equation
In a computerized environment you learn about the relationship between Peachtree and the fundamental accounting principles and processes. Although many of the accounting processes are automated with Peachtree, the user still needs to know the accounting basics principles in order to fully utilize the system. In this regard, discuss the following:
- The accounting system is based on the accounting equation. Explain this accounting equation and describe its components.
- Describe the concept of debit and credit. How are they used in accounting?
- Describe the numbering system used to number each account in computerized accounting.