Computer Software Has Become an Important Element in Every Company's

question 14

Essay

Computer software has become an important element in every company's accounting information system today.Most companies are now using computers to process their accounting information.
Required:
List the common types of software packages used for the financial accounting functions and explain what each is designed to provide.

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Definitions:

Outstanding Stock

The number of shares of a corporation that have been issued and are currently owned by shareholders.

Net Income

The amount of profit remaining after all expenses, including taxes and interest, have been deducted from total revenues.

Valuation Allowance

An accounting technique used to offset or reduce the carrying value of certain tax assets if it's more likely than not that they will not be realized.

Unrealized Gain

The increase in value of an asset or investment that has not been sold or exchanged, thus not yet generating cash.