ACC 113 Lecture Notes - Lecture 22: E-Commerce, Bookkeeping, Accrual

• School: Tunxis Community College
• Department: Accounting
• Course: ACC 113
• Professor: Muccino

Document Summary

Electronic commerce (e-commerce) is a challenge to financial accounting and internal control, because of the absence of paper trail that has traditionally supported accounting records. E. g. moving away from cash and cheque, but using lots of credit cards or eftpos. Employees are being paid by deposits in personal bank accounts. Needs to be compatibility between computing systems for proper recognition of accounting systems on both sides of transactions. Trust in electronic media to make system work. Tendency for records and payments to be speedier and separate from movements of product, means in-transit items can be a challenge to control and reconcile. Not only financial statements must be right, but also the underlying records for business partners enquiries to be answered reliably. Paradox: e-commerce works without paper but demands a good trail of evidence. Bookkeeping, and its associated record-keeping, provide the underlying data on which accounting"s information is built.