An accounting system is a sub-system of the management information system that systematically collects, processes, and reports on financial and other essential information for effective business operations and evaluation. It consists of interrelated activities involving originating, processing, and reporting financial data; written records and reports; equipment used; and personnel involved in accounting activities. Key components include business forms and papers, journals and ledgers, charts of accounts, flow charts, reports, and internal controls. The system's objectives are to provide accurate financial information and maintain adequate controls over assets.