Accounting Fundamentals: Financial Statements, Depreciation, Inventory, and Internal Controls

ACCOUNTING FUNDAMENTALS 1
ACCOUNTING FUNDAMENTALS

ACCOUNTING FUNDAMENTALS 2
Contents
Introduction:.............................................................................................................................4
Financial statements:..................................................................................................................5
Financial Report:.....................................................................................................................7
Alternative methods of depreciation:.....................................................................................7
Alternative methods of inventory:..........................................................................................8
Internal control mechanisms:.................................................................................................8
Conclusion:.............................................................................................................................10
References:..............................................................................................................................10

ACCOUNTING FUNDAMENTALS 3
Introduction:
This assignment shows the various computation of the various financial statements and also,
lists down the various ways of valuing an inventory and the various ways of calculating and
reporting deprecation. Then this report concludes with the recommendations for the business.
The company has reported a loss for the year which means that the future of the company is
in dark and unless and until, the company undertakes some measures, it will not be able to
continue in the future.

ACCOUNTING FUNDAMENTALS 4
Financial statements:
FINANCIAL STATEMENTS
Balance Sheet:
Current Assets:
Cash at bank 87,422.00
Supplies 2,460.00
Accounts receivables less doubtful debts 4,620.00
Prepaid insurance 834.00
GST 8,292.00
Total Current Assets 1,03,628.00
Non-current Assets:
Computer system 36,630.00
Van 38,800.00
Total Non-current Assets 75,430.00