Accounting Information Systems: The Processes and Controls, 2nd Edition

BASIC COMPUTER AND IT CONCEPTS (STUDY OBJECTIVE 5)

Nearly all accounting information systems rely on computer hardware and software to track business processes and to record accounting data. Therefore, it is important for you to have some understanding of basic computer terminology and concepts. Many details about IT systems are described in later chapters of this book, but some of the basic concepts are included in this chapter.

BASIC COMPUTER DATA STRUCTURES

Accounting data are stored in computer files, and an accountant should have some understanding of data structures in IT systems. Data are organized in a data hierarchy in computer systems, as follows:

1. Bit, or binary digit
2. Byte
3. Field
4. Record
5. File
6. Database

A bit is a shortened reference to binary digit. The bit is the smallest unit of information in a computer system. A bit can have only one of two values: zero or one. All data in a computer system are reduced to a set of bits, or zeros and ones. A byte is a unit of storage that represents one character. In most computer systems, a byte is made up of eight bits. For example, the character “A” would be represented in a computer system by a set of eight bits. Every character, including letters, numbers, and symbols, are represented by a byte.

A field is one item within a record. For example, last name is a field in a payroll record, and description is a field in an inventory record. A record is a set of related fields for the same entity. All fields for a given employee form ...