Data in accounting is the term used to describe the basic fads introduced as the input to a system e.g rate of pay and hours worked by an employee. ACCOUNTING DATA is all the information and data contained in journals, ledgers and other records that support financial statements, e.g. spreadsheets. It may be in computer readable form or on paperINFORMATION
Information means when data is processed to produce useful output. e.g assembling of data into meaningful form, e.g payroll.
This is a term used to describe the series of actions taken to produce useful information from raw data. It is a process of collecting all items of data together to produce meaningful information.
STAGES OF DATA PROCESSING
Many systems especially those associated with information can be divided into three main parts:
- Input data
- Processing data
- Output data
Example: If you are required to add 4 and 18 together using a calculator
The computer works out that 4+18
The figure "22" is displayed
This is the stage that deals with the receiving and recording of data to the processor for processing e.g time sheet for payroll preparation.
This stage deals with the actual processing of data. it include accessing, calculating, summarizing and sorting of records e.g detail of gross pay, tax and net pay
The raw data will now come out as information. This is the production of the end product e.g payrolls
METHOD OF DATA PROCESSING
There are three method of data processing, they are:
- Manual data processing
- Mechanical data processing
- Electronic data processing
MANUAL DATA PROCESSING
The manual data processing is a process of using physical energies in performing mathematical operations. Here, human labour is used for data processing which makes processing to be slow, inaccurate and costly
MECHANICAL DATA PROCESSING
The mechanical data processing was a further development of manual processing. This method is faster and more accurate than manual. The tools are, Abacus, calculator, pascal adding machines, Difference and analytical engine, etc.
ELECTRONIC DATA PROCESSING
The electronic method makes it possible for manual and mechanical to be substituted with electronics computers. The processing is faster than the mechanical method. The stored programs concept allows meditation to be done during programs execution.The programs can be stored and modified with good speed (speed of light). Some machines used for electronic processing are ENIC, EDVAC, EDSAC, etc