Application of accounting principles.

There may be circumstances in which the exercise use discretion is highly important
during recording, classifying and summarizing of financial data. Some practical
principles were devised for helping accountants to exercise that judgement, as they
give conceptual instructions for the implementation of the basic accounting system
on the four basic principles of accounting are crucial. They also provide an
accounting information processing cycle measurement, recording and reporting
phase. The four basic principles are:
• Historical Cost Principle
• Revenue Recognition Principles
• Matching principles
• Full-disclosure principles.
Computerized accounting systems are introduced to offer crucial advantages,
including speed and operation accuracy including the ability to examine the
company's financial situation in real time There are several features available with a
standard computerized accounting program. An organization's principal purpose is to
process financial information on organization operations and create financial
statements at the conclusion of its accounting period.
In the past, many companies physically held their records in books to write up a
report from the directors and auditors. This form of record keeping was lengthy,
sluggish and susceptible to human translation mistakes. In those days, the
computers found it relatively possible utilizing the manual technique because of the
tiny amount of accounting data. As the number and exposure of data to mistakes
was significantly increased owing to the complexity of these accounting systems, it
was necessary to have a system for the storing and processing of accounting data
with improved speed, storage and processing capacities. This led to the invention
and development of software programs for accounting.
Input screens have been built for convenience of use while running a computerized
accounting system. In contrast to a manually operated double entry system where
two or three entries are needed, every transaction has only to be entered once. In
other words, when a business transaction is entered on a computer, it is
simultaneously documented in a variety of accounting documents. A computerized
accounting system saves time and effort, decreases arithmetic mistakes considerably
and allows for more timely information than the manual approach.
Computers can also be designed to record certain changes at the end of the period
automatically. The financial statements may be prepared by most software systems
once it has been confirmed that the balance of the accounts is accurate. The closing
process can also be done by the computer at the end of the period. However,
human judgement is necessary to properly examine the entering data in the
computer system. Furthermore, the expertise and evaluation of the accountant is
often necessary to identify the necessary modifications at the end of the reporting
period. 

Reference:
Akensiro, S. A & Adetoso, J. A. (2016) The Effects of Computerized Accounting
System on the Performance of Banks in Nigeria. Journal of Economics and
Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.7,
No.14