Learning Objectives

Notes

11.1              To recognize the use of computers in business.  (TL)

The computer should be viewed as a tool in the accounting process that performs routine clerical functions.  Examples may be given to students.

11.2              To describe the data processing cycle and determine how data is processed by a computer.

Students should be aware of the cycle through which data is processed (source document preparation, input, processing, output, and using the output for analysis).  They may relate this cycle to the documents and procedures used in the accounting cycle for the service firm. 

Students should be aware that computer programs are written in languages that have been created to streamline the process of giving instructions to a computer.  At the operation level, a computer requires very explicit, simple instructions which are very tedious for humans to create.  Computers are very fast. 

Compare batch processing and on line processing as it may be used in accounting.  Examples of each type of processing is necessary for a complete explanation.

11.3              To define software and explain the various types and purposes of accounting software.  (TL)

There may be several elements to an accounting package including payroll, inventory, accounts receivable, and accounts payable.  These elements may be purchased separately or may be built in as part of an entire package.  It may support journalizing, updating ledgers, invoicing, customer statements, generating periodic reports, etc.

Specific uses of a spreadsheet include forecasting, modelling, and planning.  Students may experience spreadsheet software applications through examining the different effects of sales prices, sales volumes, costs, etc.

Word Processing may be used to generate financial reports or for general accounting correspondence.

Data bases can be used in accounting for:  mailing lists, personnel data, employee earnings records, inventory records, etc.

Communications packages can be used in accounting for general information exchange between branches or suppliers.  Mention the power of tapping into a data base which may give cost prices, interest rates, potential suppliers, etc.

11.4              To identify the key issues to be aware of when dealing with software copyright and site licensing.

The power of graphics in accounting is to supply illustration charts and graphs.

Many guidelines will be in the software materials or manuals.  Students should be aware of site licensing and penalties for infringement of copyright.

11.5              To examine the importance of restricting entry to data by using a password / security system.

Students should realize that passwords are a method of internal control.  Many large businesses may also restrict employee access to certain areas to certain times during the day.  Any area where money is transferred electronically is a potential environment for white collar crime.

A guest from the community may be invited to discuss computer security and the restricting of information within their organization.  Alternatively, students may visit a business/institution and experience some of the security measures that are enforced.

In pairs, students may research and prepare five-minute oral reports on fraud and embezzlement cases that have made the headlines.  A discussion could follow on how these cases could be avoided by the organizations concerned.  For a variation to this activity, students may imagine themselves in the organization(s) involved.  What would they do to prevent further problems?  Students may respond in a memo or journal writing.

11.6              To recognize the order and sequence necessary to start up a computer system, load and access software, and end a computer session.  (IL)

Students should be familiar with the procedures of booting (starting) the machine or starting up a network, loading and accessing a software application, and safely ending a session.

Menus and sub menus should be explained.  How does the user of the software move or access each menu?  A template or help function may assist. 

This objective may be accomplished in several ways.  To become familiar with the operations of the software package, the student may work through a directed example with the help of the teacher, may follow a prepared example from a manual, or may work through a tutorial.

11.7              To become familiar with the step by step procedure necessary to process the accounting cycle of a service firm.  (CCT)

The focus should not be on acquiring new accounting knowledge, but on becoming familiar with the software.

The procedures for operating a general ledger program may include the following:

·         configure and enter company data
·         enter chart of accounts
·         code and create accounts
·         make opening entries
·         code and journalize transactions on various menus and make back up copies
·         print reports and make back up copies
·         post to ledger(s) and make back up copies
·         carry out end of the period reports, print reports, and make back up copies.

11.8              To review the accounting cycle of a service firm relating manual activities to those that may be performed using an accounting package.

As the students review the accounting cycle, they may decide which activities can be performed by the software package.  The students should understand that the computer performs routine clerical functions.

11.9              To design an accounting system for a service firm using General Ledger Accounting software as a tool.  (CCT)

This objective may be accomplished by using a textbook project, a practice set, or a teacher created simulation.  Current source documents should be used whenever possible. 

Students should design the accounting system using software, analyze transactions, prepare all statements, and follow control procedures.  Students should strive to input transactions directly into the computer; however, an input form may be completed to help organize transaction information.  A sample of a general input form that may be used is given in Appendix C. 

The source documents and simulations should reflect the background of the students.  For example, if this module is being taught in rural Saskatchewan, source documents should be applicable.  If students are of aboriginal backgrounds, suitable transactions should be supplied.

11.10           To examine computerized accounting systems in the community to find which steps in the accounting cycle are being computerized.  (TL)

Students should be shown how to make corrections on the computer when errors are made.  One of the main purposes of this exercise is to enable students to examine their own work and make decisions when a problem arises.  Students must realize that real problems in offices do not have "ready made" solutions.  Encouraging process skills is a major focus of this instructional objective.

Students may find computerized accounting systems in the community that control inventory, process accounting data, process payroll, and others.

Why is the computer used?  What are the advantages or disadvantages?  Is the cost of the hardware and software justifiable?

A research project, student activity or classroom discussion should aim to summarize this module and make the students more aware of how the computer is used as a tool to aid the accounting process.