ACCO 20143

IT APPLICATION TOOLS IN BUSINESS AND ACCOUNTING

Chapter 1: Introduction to Computers

1. A World of Computers

• Computer literacy involves having a current knowledge and understanding of computers and their uses.

Computers are for everyone:

• For students– as the current pandemic has caused academic institutions to force face-to-face classes, colleges and
universities were forced to continue providing learnings to its students through online class. Currently, we are in
our first full year of full face-to-face and there are still a lot of challenges and hindrance in relaying and absorbing
the lectures and thought of the lesson. However, as time goes by, everyone’s learning curve (the teachers’ way of
teaching and the students’ ability to grasp the topic will improve).

• For medical concerns– the pandemic has caused the hospitals to have a spike in its hospital admissions. The medical
agency’s response to this is through “teleconsult”. The nature of “teleconsult” is very much similar to a face-to-face
medical inquiry regarding the patient’s current health status. And from there, the medical doctor can evaluate what
further actions does the patient need to do and what medicine to recommend.

• For spiritual/faith– religious establishments has been forced to closed for some time or operate at less than half of
its capacity. The religious leaders adopted the advantages of technology by streaming its masses, worships and
announcements via internet using the social media platforms.

• For employees– employers were forced to implement the work-from-home setup for work activities that do not
require physical attributes in the workplace. To ensure that the streamline of operations is still congruent with the
company’s goals and directions, a regular status meeting are held by its employees to ensure that all are
contributing to the company’s welfare.

• Many people believe that computer literacy is vital to success. Computer literacy, also known as digital literacy,
involves having a current knowledge and understanding of computers and their uses. Because the requirements
that determine computer literacy change as technology changes, you must keep up with these changes to remain
computer literate.

2. What is a Computer?
• A computer is an electronic device, operating under the control of instructions stored in its own memory.
• A computer is an electronic device, operating under the control of instructions stored in its own memory, that can
accept data, process the data according to specified rules, produce results, and store the results for future use.
Information Processing Cycle
• Computers process data (input) into information (output). Computers carry out processes using
instructions, which are the steps that tell the computer how to perform a particular task. A collection of related
instructions organized for a common purpose is referred to as software. A computer often holds data, information,
and instructions in storage for future use. Some people refer to the series of input, process, output, and storage
activities as the information processing cycle. Recently, communications also has become an essential element of the
information processing cycle.
• When you play a song in your mobile device using Spotify, the song you selected will be the music that will be played.
In accounting, when preparing a trial balance in MS Excel, you will be able to determine the final balance of the account
titles (assuming your formulas are correct).

3. Computers process data into information. Data is a collection of unprocessed items, which can include text, numbers,
images, audio, and video. Information conveys meaning and is useful to people.
 A computer processes data into information. In this simplified example, the item ordered, item price, quantity
ordered, and amount received all represent data. The computer processes the data to produce the cash register
receipt (information).

4. The Components of a Computer

• A computer contains many electric, electronic and mechanical components known as hardware
• Input Devices
An input device is any hardware component that allows you to enter data and instructions into a computer. Five
widely used input devices are the keyboard, mouse, microphone, scanner, and Web cam.
• Output Devices
An output device is any hardware component that conveys information to one or more people. Three commonly
used output devices are a printer, a monitor, and speakers.
• System Unit
The system unit is a case that contains electronic components of the computer that are used to process data (Figure
1-3 on the previous page). The circuitry of the system unit usually is part of or is connected to a circuit board called
the motherboard.
• Storage Devices
Storage holds data, instructions, and information for future use. For example, computers can store hundreds or
millions of customer names and addresses. Storage holds these items permanently.
• Communications Devices
A communications device is a hardware component that enables a computer to send (transmit) and receive data,
instructions, and information to and from one or more computers or mobile devices. A widely used communications
device is a modem (Figure 1-3).

5. The Components of a Computer

6. Advantages and Disadvantages of Using Computers

A user is anyone who communicates with a computer or utilizes the information it generates. Both business and home
users can make welli-nformed decisions because they have instant access to information from anywhere in the world.

• Advantages

Speed: When data, instructions, and information flow along electronic circuits in a computer, they travel at incredibly fast
speeds. Many computers process billions or trillions of operations in a single second.

Reliability: The electronic components in modern computers are dependable and reliable because they rarely break or
fail.

Consistency: Given the same input and processes, a computer will produce the same results — consistently. Computers
generate error-free results, provided the input is correct and the instructions work.

Storage: Computers store enormous amounts of data and make this data available for processing anytime it is needed.

Communications: Most computers today can communicate with other computers, often wirelessly. Computers allow
users to communicate with one another.

• Disadvantages:

Violation of Privacy: In many instances, where personal and confidential records stored on computers were not protected
properly, individuals have found their privacy violated and identities stolen.

Public Safety: Adults, teens, and children around the world are using computers to share publicly their photos, videos,
journals, music, and other personal information. Some of these unsuspecting, innocent computer users have fallen victim
to crimes committed by dangerous strangers.

Impact on Labor Force: Although computers have improved productivity and created an entire industry with hundreds of
thousands of new jobs, the skills of millions of employees have been replaced by computers. Thus, it is crucial that workers
keep their education up-to-date. A separate impact on the labor force is that some companies are outsourcing jobs to
foreign countries instead of keeping their homeland labor force employed.

Health Risks: Prolonged or improper computer use can lead to health injuries or disorders. Computer users can protect
themselves from health risks through proper workplace design, good posture while at the computer, and appropriately
spaced work breaks. Two behavioral health risks are computer addiction and technology overload. Computer addiction
occurs when someone becomes obsessed with using a computer. Individuals suffering from technology overload feel
distressed when deprived of computers and mobile devices.

Impact on Environment: Computer manufacturing processes and computer waste are depleting natural resources and
polluting the environment. Green computing involves reducing the electricity consumed and environmental waste
generated when using a computer. Strategies that support green computing include recycling, regulating manufacturing
processes, extending the life of computers, and immediately donating or properly disposing of replaced computers.

7. Green computing involves reducing the electricity consumed and environmental waste generated when using a
computer.

Strategies include:

Recycling

Regulating manufacturing processes

Extending the life of computers

Immediately donating or properly disposing of replaced computers

8. Networks and the Internet
• A network is a collection of computers and devices connected together, often wirelessly, via communications
devices and transmission media. When a computer connects to a network, it is online. Networks allow computers
to share resources, such as hardware, software, data, and information. Sharing resources saves time and money.
• The Internet is the largest computer network, connecting millions of computers and devices around the world. More
than one billion people around the world use the Internet daily for a variety of reasons, including the following: to
communicate with and meet other people; to conduct research and access a wealth of information and news; to
shop for goods and services; to bank and invest; to participate in online training; to engage in entertaining activities,
such as planning vacations, playing online games, listening to music, watching or editing videos, and books and
magazines; to share information, photos, and videos; to download music and videos; and to access and interact with
Web applications.
9. People use the Internet for a variety of reasons

10. a social networking Web site, that encourage members to share their interests, ideas, stories, photos, music, and
videos with other registered users.
also called online social network

11. Computer Software

• Software, also called a program, is a series of related instructions, organized for a common purpose, that tells the
computer what task(s) to perform and how to perform them.
• Two categories of software: System software and Application software
a. System software consists of the programs that control or maintain the operations of the computer and its
devices. System software serves as the interface between the user, the application software, and the
computer’s hardware.
i. Two types of system software: Operating software and utility programs
b. Application software consists of programs designed to make users more productive and/or assist them with
personal tasks.

Application Software - A widely used type of application software related to communications is a Web browser, which
allows users with an Internet connection to access and view Web pages or access programs. Other popular application
software includes word processing software, spreadsheet software, database software, and presentation software.

12. System Software – Operating System

A set of programs that coordinates all the activities among computer hardware devices
It provides a means for users to communicate with the computer and other software.
E.g., MS Windows and Mac OS
System Software – Utility Program

Allows a user to perform main tenance-type tasks usually related to managing a computer, its devices, or its programs

OS - When a user starts a computer, portions of the operating system are copied into memory from the computer’s hard
disk. These parts of the operating system remain in memory while the computer is on.

UP - For example, you can use a utility program to transfer digital photos to an optical disc. Most operating systems include
several utility programs for managing disk drives, printers, and other devices and media. You also can buy utility programs
that allow you to perform additional computer management functions.

13. Installing and Running Programs

Installing is the process of setting up software to work with the computer, printer, and other hardware.
When you instruct the computer to run an installed program, the computer loads it, which means the program is
copied from storage to memory.
Once in memory, the computer can carry out, or execute, the instructions in the program so that you can use
the program.

14. Software Development

A programmer develops software or writes the instructions that direct the computer to process data into information.
A programmer, sometimes called a developer, is someone who develops software or writes the instructions that
direct the computer to process data into information.
Programmers use a programming language or program development tool to create computer programs. Popular
programming languages include C++, Visual C#, Visual Basic, JavaScript, and Java.

15. Categories of Computers

Industry experts typically classify computers in seven categories: personal computers (desktop), mobile computers
and mobile devices, game consoles, servers, mainframes, supercomputers, and embedded computers. A computer’s
size, speed, processing power, and price determine the category it best fits.
16. Personal Computers
A computer that can perform all of its input, processing, output, and storage activities by itself.
Contains a processor, memory, and one or more input, output, and storage devices.
Often contains a communications device.

17. Mobile Computers and Mobile Devices

• A mobile computer is a personal computer you can carry from place to place. Similarly, a mobile device is a
computing device small enough to hold in your hand. The most popular type of mobile computer is the
notebook computer.
• Mobile devices, which are small enough to carry in a pocket, usually store programs and data permanently on
memory inside the system unit or on small storage media such as memory cards.
18. Mobile Computers and Mobile Devices

A notebook computer, also called a laptop computer, is a portable, personal computer often designed to fit on your
lap.

A netbook, which is a type of notebook computer, is smaller, lighter, and often not as powerful as a traditional
notebook computer.

The Tablet PC, or tablet computer, is a special type of notebook computer you can interact with by touching the screen
with your finger or a digital pen.

A smart phone is an Internet-enabled phone that usually also provides personal information management functions
such as a calendar, an appointment book, an address book, a calculator, and a notepad. In addition to basic phone
capabilities, a smart phone allows you to send and receive e-mail messages and access the Web — usually for an
additional fee.

A PDA (personal digital assistant), which often looks like a smart phone, provides personal information management
functions such as a calendar, an appointment book, an address book, a calculator, and a notepad. A PDA differs from
a smart phone in that it usually does not provide phone capabilities and may not be Internet-enabled, support voice
input, have a built-in camera, or function as a portable media player.

An e-book reader (short for electronic book reader), or e-reader, is a handheld device that is used primarily for reading
e-books (Figure 1-18). An e-book, or digital book, is an electronic version of a printed book, readable on computers
and other digital devices. Most e-book readers have a touch screen and are Internet-enabled.

A handheld computer, sometimes referred to as an Ultra-Mobile PC (UMPC), is a computer small enough to fit in one
hand. Industry-specific handheld computers serve mobile employees, such as parcel delivery people, whose jobs
require them to move from place to place. (DHL, UPS)

A portable media player is a mobile device on which you can store, organize, and play digital media. For example, you
can listen to music; watch videos, movies, and television shows; and view photos on the device’s screen.
A digital camera is a device that allows users to take pictures and store the photographed images digitally, instead of
on traditional film
19. Game Consoles
A game console is a mobile computing device designed for single player or multiplayer video games.
20. Servers
• A server controls access to the hardware, software, and other resources on a network.
• Provides a centralized storage area for programs, data, and information.
• Servers support from two to several thousand connected computers at the same time.

21. Mainframes
A mainframe is a large, expensive, powerful computer that can handle hundreds or thousands of connected users
simultaneously.
Mainframes store huge amounts of data, instructions, and information. Most major corporations use mainframes for
business activities. With mainframes, enterprises are able to bill millions of customers, prepare payroll for thousands
of employees, and manage thousands of items in inventory.

22. Supercomputers
A supercomputer is the fastest, most powerful computer — and the most expensive.
The fastest supercomputers are capable of processing more than one quadrillion instructions in a single second.
Applications requiring complex, sophisticated mathematical calculations use super computers.
Large-scale simulations and applications in medicine, aerospace, automotive design, online banking, weather
forecasting, nuclear energy research, and petroleum exploration use a supercomputer.

23. Embedded Computers

An embedded computer is a special-purpose computer that functions as a component in a larger product.
Because embedded computers are components in larger products, they usually are small and have limited hardware.
Embedded computers perform various functions, depending on the requirements of the product in which they reside.
Embedded computers in printers, for example, monitor the amount of paper in the tray, check the ink or toner level,
signal if a paper jam has occurred, and so on.

24. Examples of Computer Usage

Each family member, or home user, spends time on the computer for different reasons. These include personal
financial management, Web access, communications, and entertainment.
A small office/home office (SOHO) includes any company with fewer than 50 employees, as well as the self-employed
who work from home. Small offices include local law practices, accounting firms, travel agencies, and florists.
Today, businesses and schools are expanding to serve people across the country and around the world. Thus,
increasingly more employees and students are mobile users, who work on a mobile computer or device while away
from a main office, home office, or school.
25. A power user, requires the capabilities of a powerful desktop computer, called a work station. Examples of power
users include engineers, scientists, architects, desktop publishers, and graphic artists. Power users typically work with
multi media, combining text, graphics, audio, and video into one application. These users need computers with
extremely fast processors because of the nature of their work. The power user’s workstation contains industry specific
software. For example, engineers and architects use software to draft and design floor plans, mechanical assemblies,
or vehicles. A desktop publisher uses software to prepare marketing literature. A graphic artist uses software to create
sophisticated drawings. This software usually is expensive because of its specialized design.
• An enterprise has hundreds or thousands of employees or customers that work in or do business with offices
across a region, the country, or the world. Each employee or customer who uses a computer in the enterprise
is an enterprise user. Enterprise computing, to refer to the huge network of computers that meets their
diverse computing needs. Enterprises use computers and the computer network to process high volumes of
transactions in a single day. Although they may differ in size and in the products or services offered, all
generally use computers for basic business activities. For example, they bill millions of customers or prepare
payroll for thousands of employees.
26. Computer Applications in Society