Class 11 Accountancy Chapter 12 Applications of Computers in Accounting

In today’s world, Computers In Accountancy, are used extensively for administration and office purpose. It is used to provide accurate and reliable information related to firms’ financial activities and status through advanced computerized accounting systems.

This accounting system handles vast information and data which are continuously updated. In the end, the data is presented to the management and the decision-makers of the company.

Elements of a Computer System

The computer system is made of six elements which are interrelated with each other and perform the task.

  • Hardware – In a computer system, the hardware is the physical features. Few hardware elements instruments are a printer, monitor, and keyboard, etc. The hardware helps the users to connect the software quickly, which is used to display the tasks result that is being performed.

The four types of hardware are input hardware, output hardware, processing and memory hardware, and secondary storage hardware

  • Software – Software is a group of programmes, also known as computer instructions, which assists the user to perform a particular task. Both software and hardware guide the user to interact with the computer system. Six main types of software are an operating system, application software, utility software, language processors, system software, and connectivity software
  • People – The third element is the user who is interacting with the computer system is also an element of it. There are three types of people programmers, system analyst, end-users.
  • Procedures – Procedure are a collection of instructions, written in code, to tell a computer how to accomplish and calculate a task, and run the software, etc. The three types of procedures in a computer system are a hardware-oriented procedure, software-oriented procedure, and internal procedures.
  • Data – Data are the facts and figures that we feed on the computer. These data are processed through the computer system as information and formed as organized data. This organized data is used by management for making various decisions.
  • Connectivity – The connectivity happens when the computer is linked to a network. It supports the sharing of files, information, and other services. Computers are usually connected to a network through Bluetooth, Wi-Fi, LAN cables, and satellites etc. The popular example of connectivity in a computer system internet.

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