Importance Of Data In Accounting And Parties Interested In Accounting Information

The term “data” refers to basic details or numerical facts about an event or transaction. Data is stored and maintained on a computer or network. Computer software such as high-tech financial accounting processes this electronic data. Data is also kept as hard copy or paper print. Since accounting confines itself to transactions and events that are of a financial nature, accounting data will consist of facts, of a financial nature, relating to the transactions and events of the business entity for the accounting period. Moreover, accounting data must be supported by documentary evidence. Thus, documents, known as vouchers, support the data. Data in its raw form is usually unstructured and disjointed. It is not understandable. Therefore, accounting processes raw data into a complete form of “information” to make it useful and meaningful, capable of being used in the decision-making process by various users of accounting information.

Thus accounting data…

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