Referring to an accounting system, inputs refers to events and transactions that occur within the business, while outputs refers to the journal entries and ledger categorization that occurs after the events and transactions are recorded.

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An accounting system consists of inputs, processes, and outputs. Inputs are the events and transactions that occur within the business operations; processes are the recording of events and transactions into journals and posting of journal entries to the ledger; outputs refer to the financial statements that accountants prepare.

Referring to an Accounting System, Inputs Refers to Events and Transactions