DESIGN AND IMPLEMENTATION OF ACCOUNTING SYSTEM (A CASE STUDY OF EXCEL ACCOUNTING SYSTEM)



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ABSTRACT

Every business requires an Accounting Information System (AIS) that is capable of offering timely and reliable information for decision-making in a commercial and competitive environment in order to be successful. Accounting software is a major instrument in AISs, offering timely, accurate and reliable information. The objective of this study is investigation of the existent gap between actual situation and expected situation of accounting softwares utilized by active firms in Zanjan, Iran based on features of AISs. The method of the research is "empirical" and data is gathered through "survey." To attain the objective of the research, the researcher has used six variables: general features, compatibility, flexibility, control, training and reporting capability. The researcher has employed Willcoxon test to examine the existent gap. Results of the research indicate existence of considerable gap in all the six variables.


TABLE OF CONTENT
        i.            CERTIFICATION
      ii.            DEDICATION
    iii.            ACKNOWLEDGEMENT
    iv.            ABSTRACT
      v.            TABLE OF CONTENTS
CHAPTER ONE
1.1       Introduction
1.2       Aims and objectives
1.3       Significant of the study
1.4       Justification of study
1.5       Limitation of the study
1.6       Scope of the study
1.7       Definition of terms

CHAPTER TWO
 Literature review
2.1       History of the existing system
CHAPTER THREE
System Analysis And Design
1.      Operation Of the existing system
2.      Analysis and finding
3.      Design Methodology
4.      Design Flow
5.      Inputs
6.      Outputs
7.      Processing tasks
CHAPTER FOUR
System Development and Implementation
1.      Input Design Specification
2.      Output Design Specification
3.      Flow Chart/Algorithm
4.      System Architecture
5.      Interface and System Requirement
6.      System Implementation
7.      Program Coding
CHAPTER FIVE
1.      Summary
2.      Conclusion
3.      Recommendation
References
Bibliography
Appendix(Source Codes)


CHAPTER ONE

1.1       INTRODUCTION

In accounting, finance and economics, an accounting identity is an equality that must be true regardless of the value of its variables, or a statement that by definition (or construction) must be true. Where an accounting identity applies, any deviation from numerical equality signifies an error in formulation, calculation or measurement. The term accounting identity may be used to distinguish between propositions that are theories (which may or may not be true, or relationships that may or may not always hold) and statements that are by definition true. Despite the fact that the statements are by definition true, the underlying figures as measured or estimated may not add up due to measurement error, particularly for certain identities in macroeconomics. The most basic identity in accounting is that the balance sheet must balance, that is, that assets must equal the sum of liabilities (debts) and equity (the value of the firm to the owner). In its most common formulation it is known as the accounting equation:
Assets = Debt + Equity
where debt includes non-financial liabilities. Balance sheets are commonly presented as two parallel columns, each summing to the same total, with the assets on the left, and liabilities and owners' equity on the right. The parallel columns of Assets and Equities are, in effect, two views of the same set of business facts.
As with other spreadsheets, Microsoft Excel works only to limited accuracy because it retains only a certain number of figures to describe numbers (it has limited precision). Excel nominally works with 8-byte numbers by default, a modified 1985 version of the IEEE 754 specification (Besides numbers, Excel uses a few other data types. Although Excel can display 30 decimal points, its precision for a specified number is confined to 15 significant figures, and calculations may have an accuracy that is even less due to three issues: round off, truncation, and binary storage. In the top figure the fraction 1/9000 in Excel is displayed. Although this number has a decimal representation that is an infinite string of ones, Excel displays only the leading 15 figures. In the second line, the number one is added to the fraction, and again Excel displays only 15 figures. In the third line, one is subtracted from the sum using Excel. Because the sum has only eleven 1's after the decimal, the true difference when ‘1’ is subtracted is three 0's followed by a string of eleven 1's. However, the difference reported by Excel is three 0's followed by a 15-digit string of thirteen 1's and two extra erroneous digits. Thus, the numbers Excel calculates with are not the numbers that it displays. Moreover, the error in Excel's answer is not just round-off error.

 1.2      AIM AND OBJECTS
The aim of this project is to design and implement an accounting software that will be able to calculation some mathematics calculation.


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