The method used to record and summarize accounting data into reports is called a(n) system.

The method used to record and summarize accounting data into reports is called an accounting information system (AIS). An AIS facilitates the collection, storage, processing, and reporting of financial data, allowing businesses to keep track of their financial transactions and generate critical financial reports like income statements, balance sheets, and cash flow statements.

By integrating various functions of accounting, such as accounts payable, accounts receivable, payroll, and general ledger, an AIS enhances operational efficiency and improves accuracy in financial reporting. It often utilizes technology and software solutions to automate data entry and ensure reliable record-keeping. The effectiveness of an AIS directly impacts decision-making, financial management, and regulatory compliance within an organization.