Accounting Assignment - Accounting Fundamentals
Added on 2020-05-16
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Running Head: Fundamentals of AccountingFundamentals of Accounting
Fundamentals of Accounting2Table of ContentsQuestion 1.............................................................................................................................................3Proficient:..........................................................................................................................................3Distinguished:....................................................................................................................................3Question 2.............................................................................................................................................3Proficient:..........................................................................................................................................3Distinguished:....................................................................................................................................4Question 3:............................................................................................................................................4Proficient...........................................................................................................................................4Distinguished:....................................................................................................................................5Question 4.............................................................................................................................................5Proficient:..........................................................................................................................................5Distinguished:....................................................................................................................................6Question 5:............................................................................................................................................7Proficient:..........................................................................................................................................7Distinguished:....................................................................................................................................7References:............................................................................................................................................8
Fundamentals of Accounting3Question 1Proficient: You have taken over a set of accounting books for a small business as a part-timejob. At the end of the first accounting period, you have partially completed the work sheet by entering the proper ledger accounts and balances in the Trial Balance columns. You turn to the manager and ask, "Where is the list of additional information I can use in entering the adjusting entries?" The manager indicates there is no such list. In all the text problems you have done, you have always been given this information. How would you obtain the information for this real-life situation?The very first thing that the manger needs to do is to review all the adjusting entries that weremade at the end of previous period of accounting. This is because most of the accounting entries are repeated in each and every accounting period. The next thing to do is to review thetittles of accounts recorded in the trial balance. For example, of we see the trial balance and review the account titled Furniture, then we do ensure that the entry has made for the depreciation or not. We review the various sources of document that cover the various assets, liabilities, expenses and revenues and analyse as any of them is not recorded. The manager must identify all the services that were received and performed in the previous months that may be having any outstanding credits and debits. Distinguished: What are the consequences of not making all of the required adjustments at the end of the accounting period?The consequences if we do not make all the required adjustments at the end of accounting period will either understate or overstate the net income, expenses, owner’s equity, assets andliabilities. The presentation of financial statements needs to be accurate as the shareholders and other stakeholders use this financial information to make various decisions regarding their investment. Question 2Proficient: After the Adjusted Trial Balance columns of a work sheet have been totalled, which account balances are extended to the Income Statement columns, the Statement of Retained Earnings columns, and the Balance Sheet columns?
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