9706 · 3.4.1
Computerised Accounting Systems flashcards
Revision flashcards for Cambridge 9706 Computerised Accounting Systems (syllabus 3.4.1). Flip, recall, then mark a real past-paper question.
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Data Integrity
The maintenance and assurance of the accuracy and consistency of data over its entire life-cycle. In accounting, it means the financial data is reliable, complete, and correct.
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Parallel Running
The process of operating a new computerised system alongside the old manual or computerised system for a period of time. The outputs are compared to ensure the new system is working correctly before the old system is retired.
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Chart of Accounts
A list of all the financial accounts in the general ledger of a business, organised and numbered. It provides the structure for recording transactions in a computerised accounting system.
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Opening Balances
The balances of asset, liability, and equity accounts at the beginning of an accounting period. When transferring to a new system, these are the closing balances from the old system.
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Audit Trail
A chronological record of system activities that enables the reconstruction and examination of the sequence of events. In accounting software, it tracks who made what entry and when, which is crucial for error detection and fraud prevention.
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System Configuration
The initial setup of a new computerised accounting system. This includes creating the company file, defining the chart of accounts, and inputting master data for customers, suppliers, and employees.
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Cut-off Date
The specific date chosen to stop recording transactions in an old accounting system and start recording them in a new one. Closing balances at this date become the opening balances in the new system.
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Data Verification
The process of checking data for accuracy and completeness after it has been transferred to a new system. This can involve comparing reports from the old and new systems or having a second person review the input.