The Portable MBA in Finance and Accounting, 3rd Edition

(Greg DeLong) #1

156 Understanding the Numbers


OPERATING SYSTEMS


The operating system is the basic software that makes the computer run. Ap-
plications sof tware is the software that runs a particular user function. Some
say that the operating system is the software closest to the machine, while the
applications software is the software closest to the user.
Microsoft Windows is the predominant operating-system software for
the personal computer. In the past 10 years, Microsoft has become the ac-
knowledged leader in the development of both operating-system and office-
automation software. The Windows operating system provides a graphical
format for communicating between the computer and the user, while a point-
ing device, such as a mouse, is used to point to the icon of the folder or appli-
cation that the user wishes to open.


APPLICATIONS SOFTWARE


Applications software is the personal computer ’s raison d’être. Although there
are a multitude of applications available for the PC, this chapter focuses on the
following personal-productivity programs:



  • Word processing.
    •Spreadsheets.

  • Presentation graphics.

  • Databases.

  • Personal finance.

  • Project management.


Most of the popular packages are available as application suites that in-
clude word processing, spreadsheets, graphics, and sometimes database man-
agement systems. Microsoft Office is one of the most widely used suites; it
includes Word for Windows (word processing), Excel (spreadsheet), PowerPoint
(presentation graphics), Access (database), as well as several other applications.
The original spreadsheet application was developed at the very beginning
of the PC revolution and was called VisiCalc. It was later replaced by Lotus
1-2-3, which became the standard until the tremendous success of Microsoft
Office and Excel.


Word Processing


One of the two most popular applications, word processing and spreadsheets,
word processing has increased people’s ability to communicate more effec-
tively. With word processing software, the user can create, edit, and produce a
high-quality document that appears as professional as that of any large organi-
zation. Thus, word processing has become the great business equalizer, making

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