Jim Price and Elaine Bijard are taking an accounting systems course at their local university. They are intrigued with the rapid advances in technology and communication that are occurring in the computer world. Today’s lecture was especially thought provoking. Professor Hansen stated that it is no longer necessary or even desirable to record business events in sequential order as has

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Jim Price and Elaine Bijard are taking an accounting systems course at their local university. They are intrigued with the rapid advances in technology and communication that are occurring in the computer world. Today’s lecture was especially thought provoking. Professor Hansen stated that it is no longer necessary or even desirable to record business events in sequential order as has been traditionally done in accounting journals. The better approach is to capture all data related to a business event in a computer database, including accounting, marketing, and production data, and to prepare reports for many different users from a single source. The database would be a management information database, not just one for accounting reports. Jim argues that such an approach would make it more difficult for accountants to keep control of input and ensure the integrity of their financial reports, but Elaine feels that the sooner the accountants recognize the potential, the better they can serve management’s varied needs. What advantages and disadvantages do you see coming from a database approach to recording? How can Jim’s objections be met?

Related Book For answer-question

Intermediate Accounting

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

ISBN: 978-0324592375