Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
CHAPTER 8
to understand the purpose of data coding and to be able to identify the respective features,
advantages, and disadvantages of the various numeric and alphabetic coding schemes;
to understand the operational features of the general ledger system, the financial reporting
system, and the management reporting system;
to be able to identify the principal operational controls governing the general ledger,
financial reporting, and management reporting systems;
to understand the effect of decision type and management level on information needs;
to know the different report types and the attributes common to all reports;
Page 8-1
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
I.
B.
C.
!
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II.
sequential codes,
block co des,
group cod es,
alpha betic cod es, and
mnemo nic cod es.
Page 8-2
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
A.
B.
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!
!
GLS Procedures
Fig. 8-5, on page 417, is a flowchart of the GLS
update process. It is very simp le and should contain
no surprises.
III.
Page 8-3
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
IV.
V.
Computer-Based GL/FRS
Two approaches to automating the GL/FRS are presented:
batch processing with sequential files and batch with direct
access files. Financial rep orts are norm ally perio dic;
therefore, there is little need for real-time systems.
A.
B.
VI.
Page 8-4
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
this material for gra nted. R ead carefully all that is
involved in eac h of the four steps:
1.
2.
3.
4.
Management Principles
Depend ing on your experience with management
courses, this section may be a review or it may be
eye-opening. Of particular value are the little sections
implications fo r the M RS.
C.
Page 8-5
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
D.
Problem Structure
It should not be surprising that there are different
types of prob lems. T he text d iscusses three elements
or aspects of problems that determine whether a
problem can be regarded as structured or
unstructured. These elements are:
!
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!
E.
i.
ii.
Page 8-6
James A. Hall
Accounting Information Systems, 4th. Ed.
Chapter
GL, Fin. Rept. & MRS
Notes
assistance of an information p rofessio nalthe ability
to get the information now.
The discussion of report attributes expands on ideas
introduced in chap ter 1. R ecall the reference to
Statem ent of Financial Accounting Concepts
Num ber 2.
F.
Responsibility Accounting
Responsibility accounting is based on the concept
that managers are accountable only for items that they
can control. This section may revisit material from
your cost accounting or managerial accounting
course. It emphasizes the importance of setting
financial goals (that nasty word budget, again) and
measuring and reporting performance.
Part of the responsibility question leads to the
identification of three types of respo nsibility centers:
cost center, pro fit centers, and investme nt centers.
Even if you have met these concepts before, be sure
you understand them. They have definite implications
for information systems.
G.
Behavioral Considerations
This chapter has discussed the management reporting
system and how it can help managers and
organizations make better decisions. But, decisions
are made by people and people are not as rational as
programmed information systems. This last section
raises several q uestions of a behavioral nature.
Goal congruence refers to the need to m atch the goals
of individuals (and the related measures of
performance) to overall organizationa l goals.
As information systems have become more complex
and soph isticated, the po ssibility arises that too much
information is generated and provided to decision
makersa situation called information overload. [This
may occur in some of your accounting courses!!!] In
add ition, if inappropriate performance measures are
selected, inap propriate decisio ns are m ade. Read all
of this material carefully.
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