Accounting and Financial Management

The provided assignment details include various aspects of accounting and financial management. It starts with a question about the types of adjusting entries recorded at the end of the year, followed by journal entries for rent, prepaid interest, depreciation, and unearned revenues. The next section discusses current liabilities, which are debts to be met within 12 months, as opposed to non-current liabilities that extend beyond this period. Current ratio is also explained, being a measure of liquidity position that compares current assets to current liabilities. Finally, an adjusted workbook with three changes is provided, along with its formula view and income statement and balance sheet in normal and formula views. This assignment serves as a valuable resource for students seeking past papers and solved assignments.

Running head: ACCOUNTING SYSTEM AND PROCESS
Subject Code:
Subject Name: Accounting System and Process
Student Name:
Student ID Number:
Name of the University:
Assignment Task Number: 1
List of Questions Attempted: 15
List of Question Not Attempted: 0
Author’s Note:

ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Question 5........................................................................................................................................5
Question 6........................................................................................................................................5
Question 7........................................................................................................................................6
Question 8......................................................................................................................................11
Question 9......................................................................................................................................12
Question 10....................................................................................................................................13
Question 11....................................................................................................................................16
Question 12....................................................................................................................................17
Question 13....................................................................................................................................18
Question 14....................................................................................................................................18
Question 15....................................................................................................................................19
Reference.......................................................................................................................................25
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Question 1
Plagiarism may be defined as the wrongful act of taking the works, ideas and opinions of
others and passing them as their own. In other to plagiarize means to steal the work of other and
pass the works as their own.
Collusion refers to a form of plagiarism where the assignment is done by two or more
persons in order to do a piece of work which is to done by individual person. It is also considered
to be application of unfair means and both plagiarism and collusion are strictly prohibited in
academic writing. Both plagiarism and collusion are unfair to honest students. In case of
plagiarism, the work is taken of a student who has worked hard on his assignment and used the
same work and pass it as own (Fraser, 2014). It is a form of cheating and therefore must be
prohibited. In case of Collusion, assignment which is supposed to be done by an individual
student is done by a group of students which defies the main purpose of assessment criteria of
the assignment and hence it is considered to be unfair for those students who are working
individually for the assignment.
Question 2
Normal View of the Spreadsheet
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Figure 1: (Normal View of the Spreadsheet)
Source: (Created by Author)
Formula view of the Spreadsheet
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Figure 2: (Formula View of the Spreadsheet)
Source: (Created by Author)
Another method which can be used for copying and pasting spreadsheets in word file is
the use of copy and paste option which is present in Microsoft office documents. The user can
copy the spreadsheet by using the function of Control+ C and then paste the spreadsheet in word
file with the application of function Control + V.
Question 3
The websites which are relevant to the process of accounting are given below:
1. Australian Accounting Standard board: The website contains all the standards which are
issued by the Australian Accounting Standard board and also recent amendments in
accounting.
http://www.aasb.gov.au/Home.aspx
2. Australian Financial Review: It contains all the important information, review and
analysis of finance and investments and also accountancy.
http://www.afr.com/
3. Accountants daily: This website is useful as it contains information about updates and
reports and analysis of accountancy reviews. The website contains all the relevant
information which is concerning accounts.
https://www.accountantsdaily.com.au/
4. CPA Australia: This website is the official website for the institute of CPA which is a
professional course which specializes in accounting. The websites contain accounting
information, methods and technique.
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https://www.cpaaustralia.com.au/become-a-cpa
5. Chartered Accountants Australia: The website contains information which are related to
the to the professional course of Chartered Accountants which is a professional course
which deals with accounting aspects. Such chartered accountants are responsible for all
accountant relating work.
https://www.charteredaccountantsanz.com/member-services/resource-centre
6. Financial Observer: This website contains all the necessary information which is related
to the accounting amendments and recent developments in accounting process.
http://www.financialobserver.com.au/
Question 4
Australian Accounting Standard Board (AASB) is an accounting board which is there for
maintaining and issuing of accounting standards. The board is also responsible for also making
amendments to existing standards which were issued previously. The standard which are issued
by the board are the basis on which financial statements are prepared. The resources are
important as it is on the basis on such standard that financial reports are prepared and analyzed.
Question 5
Nowadays in most offices, the management uses computer-based software for the
purpose of recording and classifying information. The use of technology which involves use of
accounting information system allows the companies to improve the overall accountancy
process. The accounting software which were used in the accounting process of the company
were ERP system, integrated software. Such software was used by the businesses to classify,
summarize and analyze the accounting data of the company and also publish the results of the
analysis. The employees of the company are provided with their own systems so that they can
monitor and enter data into the system which can then be used for analysis and record keeping by
accounting information system. The company uses various appliances which are printers, Xerox
machines and computer software. I am currently working in an accounting firm which utilizes
accounting information system such as ERP system to record and analyze the information. The
main activity of the firm is to maintain and analyze the accounting records of the clients.
The firm uses MS excel, ERP system to maintain the accounting records of the client
company and also for the purpose of the analysis of the same. I am given the responsibility to
enter the accounting data of the client’s business in the system and also ensure that there is no
omission and error in the data entry system on the basis of which accounting reports are
published and financial reports are prepared and analyzed.
Question 6
ABC Learning was an Australian Company which was engaged in providing education
services for children. The company was very successful in its initial stages and was a leading
company which provided educational services for children. Then the overall costs and value of
the assets started to rise. This in turn also increased the overall liabilities of the company. As the
financial crisis hit the company, the management of the company started manipulating
accounting records to show profits so that the overall share prices of the company did not fall. As
the crisis continued evidence show that the company started to have problems in repaying long
term debts which the company had taken initially (Sumsion, 2012). Moreover, the financial
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reports of the company had material misstatements which involved cooking up profits or
overstating the assets of the company. The company in 2008 was liquidated due to the financial
crisis which it had been facing.
Further Evidences suggest that the company’s liabilities had also increased for which the
company was having problems in maintaining the cash to settle such liabilities and thus it
resorted to misstating the financial reports and also taking more and more loans to cope up with
the liabilities and losses of the company. The ethical issues which can be pointed out for the
down fall of the company are mentioned below:
1. The material misstatements which the company was doing in order to cover up the real
situation of the financial reports.
2. The inflated value of the intangible assets which lead to the overall increase in the value
of the firm.
3. Improper maintenance of the books of accounts lead to the downfall of the company.
The main contents of the financial reports are the statement of profit and loss, Balance Sheet,
Statement of change in equity, Cash flow statement. The statement of profit and loss depicts
whether the business has earned profit or loss during the year. The statement of change in equity
shows the position of the equity shareholders and capital structure of the company during the
year. The cash flow statement shows the cash inflows and outflows taking place in the year. This
statement also provides a measure of liquidity. The balance sheet shows the financial position of
the company at the end of the year showing all values of assets and liabilities of the company.
Question 7
Account’s
Name
Proprietorshi
p
(P)
Asset
(A)
Liabilities
(L)
Expense
(E)
Revenue
( R )
Mortgage
Payable

Rent
Expenses

Cash 
Office
Equipment

Salary
Expense

Salary
Accrued

Property
Tax
Expenses

Prepaid
Expenses

Office
Furniture

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Electricity
and gas
expenses

Account
Payable

Smith
Capital

Service
Revenue

Account
Receivable

Supplies
Expenses

Investments 
Normal View of Statement of Income and Expenses and Balance Sheet
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Formula View of Statement of Income and Expenses and Balance Sheet
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Question 8
Balance Sheet Showing Normal View
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Balance Sheet Showing Formula View
Question 9
The four accounts which have normal debit balances are as follows:
1. Purchases
2. Wages expenses
3. Depreciation
4. Interest and Fixtures
The four accounts which have credit expenses are as follows:
1. Sales
2. Commission received
3. Liabilities
4. Capital fund of the business.
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Question 10
Trial Balance with Normal View
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Trial Balance with Formula View
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Trial Balance shown with three changes
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Question 11
Crossword Puzzle Blank
Crossword Puzzle Solved
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Question 12
The examples of four types of adjusting entries which are recorded at the end of the year are as
follows:
a. Accrued Expenses
b. Prepaid Expenses
c. Depreciation Expenses
d. Unearned revenues
Journals Entries
Rent A/c Dr 24000
To Outstanding Rent
A/c 24000
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Prepaid Interest A/c
Dr 1500
To
Cash A/c 1500
Depreciation A/c
Dr 6000
To Accumulated
Depreciation A/c 6000
Cash A/c
Dr 5000
To Unearned
Income A/c 5000
Question 13
Current liabilities refer to the liabilities which are to be meet with in the period of 12 months
whereas non-current liabilities are the liabilities which the company expects to hold over the year
and for a longer period of time which is more than 12 months. An example of current liability
which can be given is creditors (Weil, Schipper & Francis, 2013). An example of Non-current
liabilities which can be given is long term debts.
Question 14
Current ratio is a ratio which measures the liquidity position of the company. In order to
calculate current ratio current assets will be divided with current liabilities (Heikal, Khaddafi &
Ummah, 2014). The results of current ratio is a financial indicator for a company.
Current Assets: $ 4,50,000
Current Liabilities: $ 3,00,000
Current ratio: Current Assets/ Current Liabilities
= 4,50,000/3,00,000
= 1.5
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Question 15
Adjustment Workbook
Adjusted Workbook Formula View
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Income statement and Balance Sheet Normal View
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Income Statement and Balance Sheet Formula View
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Adjusted Workbook with Three Changes Normal View
Adjusted Workbook with Three Changes Formula View
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Reference
Fraser, R. (2014). Collaboration, collusion and plagiarism in computer science
coursework. Informatics in Education, 13(2), 179.
Heikal, M., Khaddafi, M., & Ummah, A. (2014). Influence analysis of return on assets (ROA),
return on equity (ROE), net profit margin (NPM), debt to equity ratio (DER), and current ratio
(CR), against corporate profit growth in automotive in Indonesia Stock
Exchange. International Journal of Academic Research in Business and Social
Sciences, 4(12), 101.
Sumsion, J. (2012). ABC Learning and Australian early education and care: a retrospective
ethical audit of a radical experiment. Childcare markets local and global: can they deliver an
equitable service, 209-225.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
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