Accounting System and Procedure Assignment
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Added on 2020-05-28
Accounting System and Procedure Assignment
Added on 2020-05-28
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Running head: ACCOUNTING SYSTEM AND PROCEDURE Subject Code: ACC 566Subject Name: Accounting System and ProcedureName of the StudentAssignment Task Number 2List of Questions Attempted- 13List of Questions Not Attempted - 0
ACCOUNTING SYSTEM AND PROCEDURETable of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................2Answer to question 3:.................................................................................................................2Answer to question 4:.................................................................................................................3Answer to question 5:.................................................................................................................4Answer to question 6:.................................................................................................................5Answer to question 7:.................................................................................................................5Answer to question 8:...............................................................................................................10Answer to question 9:...............................................................................................................15Answer to question 10:.............................................................................................................16Answer to question 11:.............................................................................................................16Answer to question 12:.............................................................................................................17Answer to question 13:.............................................................................................................17Reference List:.........................................................................................................................21Name-Student Number-1 | P a g e
ACCOUNTING SYSTEM AND PROCEDUREAnswer to question 1:In the below stated computations the reference of the spread sheet is replaced with thenames in each of the specific cells in the spreadsheet. The primary objective of thesereplacement is the to facilitate the ease of convenience and association with the calculationsof the numbers in the excel spreadsheet. The below stated tabular representations provides theillustrations of replacement of the cell with reference to the names; ParticularsAmount (in $)Sales 125,000Cost of goods sold 95,000Gross Income30,000Answer to question 2: The numbers that are negative is generally exemplified in the spreadsheet with thehelp of brackets in red and the same is particularly executed in the below stated illustrations Figure 1: Figure representing illustrations of negative numbers(Source: Williams, 2014)Name-Student Number-2 | P a g e
ACCOUNTING SYSTEM AND PROCEDUREAnswer to question 3: For the accountants in the spreadsheet a separated bookkeeping or entry of data isrequired and the reason for this is that it helps in depicting single view of every single row.Consequently, for report a distinct area for report is necessary to help the accountants inpreparing the detailed reports along with the required data source (Williams, 2014). Therange of data entry is put into use to record the raw data, whereas the portion of report is putinto use for converting the record into a meaningful information. An important assertion in this regard is that a distinct area for record keeping isrequired to be created so that incorrect bookkeeping of the raw data is recorded in thespreadsheet. Hence, the procedure of creating a parting enables stress-free recording of theraw data together and helps in eliminating the needless information. The below statedspreadsheet illustrations is provided below; Figure 2: Figure representing separate data entry areas and reports in the spreadsheets(Source: Williams, 2014)Answer to question 4: The “IF” functions helps in providing anticipated intelligence to the program with thehelp of which the program would be able to take the decision in respect of the developedcriteria and determining course of the program. As stated by Deegan (2016), the “IF”function can be defined as the function that assist in examining whether or not the conditionsis attained. Most importantly the “IF” functions helps in returning the singular value andsatisfies the criteria then it will be true and alternatively if the criteria is not met then thevalue will be false. An example of spreadsheet is obtained with the help of “IF” functionswhich is stated below; Name-Student Number-3 | P a g e
ACCOUNTING SYSTEM AND PROCEDUREFigure 3: Figure illustrating the IF functions(Source: Warren & Jones, 2018)Answer to question 5: Perpetual Inventory SystemPeriodic Inventory SystemUnder the perpetual inventory system thereis constant updates in the general ledger orthe inventory journal because inventoryrelated transactions take place (Warren &Jones, 2018). Under the periodic inventory system, cost ofgoods sold accounting entry is not recordedduring the accounting period till thephysical count takes place which is laterderived to compute the cost of goods sold. It is not possible to physically maintain therecords for the perpetual inventory systembecause there could be numeroustransactions at the unit level during theaccounting period. Under the periodic inventory system, itenables the users to manually record theaccounts for each small inventories. In the perpetual inventory system there is aconstant updates to the cost of goods soldwhen each unit of the sales is made.In the periodic inventory system the cost ofgoods sold is computed in lump sum at theend of the accounting period (Henderson etal., 2015).Name-Student Number-4 | P a g e
ACCOUNTING SYSTEM AND PROCEDUREAnswer to question 6: Under any form of accounting role an individual can obtain the benefit from using thespreadsheet in day to day task. Spreadsheet helps in easy tracking of payment for smallbusiness owners. The owners of small business are new to accounting and may find itdifficult in tracking the payments, spreadsheet helps offering easy solution of trackingpayments. Spreadsheet helps in commonly using the analysis of money which is spent andincome that has been received (Pratt, 2016). Spreadsheet enables an individual to split theamount of cash that business has received and received during the time period and source.Additional advantage of using the spreadsheet is that business can link the worksheetstogether and it is useful in determining cash flow. However, one of the disadvantage ofspreadsheet in accounting is that it is vulnerable to fraud which might result in million dollarlosses and also it lacks control. Answer to question 7: Name-Student Number-5 | P a g e
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