Final answer:
An accounting information system collects and processes transaction data and disseminates financial information. The accounting cycle summarizes the steps involved in processing financial transactions.
Step-by-step explanation:
An accounting information system collects and processes transaction data and then disseminates the financial information to interested parties. The accounting cycle summarizes the various steps involved in processing financial transactions, including recording and analyzing transactions, adjusting entries, preparing financial statements, and closing the books.
One important component of an accounting information system is the balance of trade statistics. This is the record of a country's imports and exports, which is compiled using data from various sources, such as the Census Bureau, international organizations, and other countries. The balance of trade statistics provide insights into a country's economic performance and trading relationships.
Banks also play a crucial role in the payment system and as financial intermediaries. They facilitate the exchange of goods and services for money or other financial assets, lower transaction costs, and help bring savers and borrowers together. Furthermore, banks contribute to the creation of money, making transactions safer and easier.