Events that affect an organization's accounting system. Some events will mature into accounting transactions while others may not.
Information that meets the legitimate needs of external users, communicates among parties transacting business with one another, and provides a basis for
informed management decisions. It can be expressed in monetary terms as well as ratios, percentages, or units and includes any data that are either directly or indirectly reflected in the financial statements
whether in this or in future periods.
accounting information system
A system that delivers accounting information. Its purposes are: to meet an organization's statutory reporting requirements; to provide relevant
and accurate accounting information to those who need it and when they need it; to conduct or at least enable most business processes ranging from the recording of sales orders to the reconciliation of bank
accounts after liabilities have been paid; and to protect the organization from possible risks stemming from abuse of accounting data or of the system itself.
Economic events that affect an organization-s accounting equation.
Events of an organization that may not necessarily affect its accounting equation and therefore may never mature into accounting transactions.
electronic data interchange (EDI)
The transmission of business documents in machine-readable form between two organizations known as "trading partners."
enterprise resource planning (ERP) software
Software that groups an organization's accounting function with finance, sales, manufacturing, and human resources into a coherent, integrated system
making financial and operational data available to personnel throughout the organization.
A business activity. Business events, or activities, comprise business processes.
Coding that is used to uniquely identify events recorded in an accounting information system. An event may be a transaction event, such as a sale, or a nontransaction event, such as the receipt and acceptance of a sales order.
events-based accounting system
An accounting system that captures not only the debit and credit aspects of transactions but other information about transactions and also captures events other than transactions that are relevant to the operation of the organization.
An auditor who performs a public service by expressing an opinion about the "fairness" of a client's financial statements. The auditor's opinion gives stockholders, creditors, and others confidence that an
organization's financial statements provide a basis for investment decisions.
Reporting by an organization to parties outside of the organization.