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Financial Accounting by P. C. Tulsian

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18 CHAPTER

Use of Computers in Accounting

MEANING OF A COMPUTER

A computer is an electronic machine which operates on given instructions and PROCESSES the INPUT DATA, to covert it into some OUTPUT (i.e., INFORMATION). Let us consider a simple real life example to make ‘Rice Pulao’ in the kitchen to understand the meaning of DATA, INFORMATION AND PROCESSING.

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Thus,

  1. DATA is collection of facts and figures which has no meaning when collected. For example, somebody asks names of the students of your class and enters these in the computer without any sequence.
  2. PROCESSING is the sequence of actions taken on data to convert it into information which ...

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