Single Entry and Double Entry Accounting

Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c

How Technology Affects Managerial Communication

Two developments in information and communication technology seem to be having the most significant impact on current managerial communication: networked computer systems and wireless capabilities.

Networked Systems
1. An electronic mail system is a mail system that allows high-speed exchange of written messages through the use of computerized text-processing and communication networks.
a.  Electronic mail has advantages.
1)  It is a time-saver.
2)  It leads to exchanges of information among managers who previously did not communicate.
3)  Managers tend to receive new types of information through these systems.
b.  Electronic mail has a couple of disadvantages.
1)  It eliminates the nonverbal cues that serve as aids in face-to-face communication.
2)  It is easy to vent anger and frustrations over email that would never be communicated through regular written communication channels.
3)  It leads to an excess of irrelevant mail.

2.  Voice mail is the recording systems which enable senders to leave messages for receivers by telephone.
a.  Some nonverbal cues are sent, such as voice quality and tone.
b.  It is particularly suited for short messages that require no further discussions or feedback.
 
3.  Teleconferencing is the simultaneous communication among a group by telephone or via computer using specially designed software. The software is often referred to a “groupware.” 
 a.  Meeting can be held while members are not in the same location.
b.  Each group member has access to their own computer which is linked to a network and to an overhead projector.
c.  Messages are anonymous.
d.  Most, and sometimes all, communication is done through the computers.
e.  These systems have incredibly high speeds and, usually, very high success rates.

4.  Videoconferencing is the holding of meetings with individuals in two or more locations by means of closed-circuit television.
1)  It is synchronous, meaning  that senders and receivers can engage in simultaneous communication of the type associated with face-to-face conversation.
2)  It is fast.
 
5.  Electronic data interchange (EDI) is a way for organizations to exchange standard business transaction documents, such as invoices or purchase orders, using direct computer-to-computer networks.
 
6.Intranet systems are organizational communication networks that use Internet technology and are accessible only by organizational employees.
 
7.Extranet systems are organizational communication networks that use Internet technology and allow authorized users inside the organization tocommunicate with certain outsiders such as customers and vendors.

Wireless Capabilities
Wireless communication depends on signals sent through air or space without any physical connection using things such as microwave signals, satellites, radio waves and radio antennas, or infrared light rays.
How Information Technology Affects Organizations
1.  Communication and the exchange of information among organizational members are no longer constrained by geography or time.
2.  However, managers must not forget to address the psychological drawbacks such as the cost of an employee being constantly accessible, pressure to “check in” even during off hours, and the separation of work lives and personal lives.

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