Applications of Computers in Accounting
Computer System- Meaning, Elements and Components
After going through this lesson, you shall be able to understand the following concepts.
• Components of Computer
• Limitations of Computer System
In the modern days, computer has gained its own importance in every sphere. It has taken over all the markets, businesses and professions. It has become a major requirement for every business sector today. It is generally regarded as lifeline of modern business- like blood is required for efficient functioning of our body, in the same way computers are required for the smooth running of any type of business. In accounting context too, computers are used to process large amount of data to perform speedy calculations and to generate various accounting reports.
Definition of Computers
International Standard Organisation has defined computers as follows:
"A computer is a data processor that can perform substantial computations, including numerous arithmetic and logic operations, without intervention of human operator during the run."
Meaning and Elements of Computer System
It is an electronic machine that is used to process raw data into meaningful information required by the users. It works on a set of instructions that are programmed into it in the form of software which helps them in processing the data and producing information as per the requirement. A computer system is mainly composed of six elements namely, hardware, software, people, procedures, data and connectivity. The detailed explanation of all these elements is given below.
1. Hardware- It includes all the physical components of a computer such as keyboard, mouse, monitor, processor, etc. These components can be touched and the user inputs commands using these components.
2. Software- A set of programs that enables a computer to perform its tasks or commands given by the user. There are following six types of software.
a. Operating System- It is an integrated set of specialised programs that are meant to manage and control the resources of a computer. They make the computer user–interactive, i.e. user-friendly. It means that operating system forms an interactive link between the user and the computer hardware. For example, Windows, Linux, etc.
b. Utility P…
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