Question

What do you understand by accounting data? Discuss the stages through
which it is finally transformed for being presented as information in financial
statements.

Answer 1

Accounting data refers to the information that generates results in order to take managerial decisions. The stages by which it is finally transformed are provided below.

Explanation:

Accounting data refers to the information that generates results and helps the companies and managements in order to take managerial decisions. It is gathered in the form of vouchers that are added in the computer's storage device with the help of a pre-designed data entry.

The processing of data involves a tactic of gathering, sorting, relating, determining, and computing of the data. It provides companies a sense to make useful decisions.

The stages by which it is finally transformed in order to get presented as an information in the financial statements are as follows:

i. Source documents

ii. Input of the data

iii. Data storage

iv. Manipulation of the data