Accounting Systems and Processes - Sample Assignment

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Subject Code: ACC 566
Subject: Financial Analysis
Name of the Student:
Assignment Task Number 2
Number of Questions Attempted: 13
Number of Question Not Attempted: 0

ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Question 1........................................................................................................................................3
Naming cells in spreadsheets...........................................................................................................3
Question 2........................................................................................................................................3
Negative numbers............................................................................................................................3
Question 3........................................................................................................................................4
Spreadsheet of data and report areas...............................................................................................4
Question 4........................................................................................................................................5
IF Functions.....................................................................................................................................5
Question 5........................................................................................................................................5
Distinction Between Perpetual and Periodic Inventory System......................................................5
Question 6........................................................................................................................................6
Advantages and Disadvantages of Using Spreadsheets...................................................................6
Question 7........................................................................................................................................7
Question 8......................................................................................................................................10
Bank reconciliation Statement.......................................................................................................10
Question 9......................................................................................................................................12
Journal Entries...............................................................................................................................12
Question 10....................................................................................................................................14
Question 11....................................................................................................................................14
Question 12....................................................................................................................................15
Dishonor of a note receivable........................................................................................................15
Question 13....................................................................................................................................16
Reference List................................................................................................................................19
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ACCOUNTING SYSTEM AND PROCESS
Question 1
Naming cells in spreadsheets
In MS Excel, the users have the option to name the cells in which functions are being
carried out by the users. The naming of cells allows the users to identify the cell and also
recognize the functions which are applied for the cell (Le Brazidec et al., 2013). In other words,
naming of cells are done so as to facilitate clarity and proper understanding of the financial
information. Thus, the basic advantage which are associated with the naming of cell is related to
convenience of the users of the excel spreadsheets (Abreu et al., 2015).
Calculation of Gross Profit:-
Particulars Amount
Sales Revenue $17000
Less: Cost of Goods Sold $2000
GROSS PROFIT $15000
Question 2
Negative numbers
In an Excel spreadsheet whenever during a calculation or data entry figures comes as
negative than the same will be denoted with a minus sign in the beginning or the figures will be
in brackets or the same figures may also be highlighted in color red (Hopkins, 2017). This is
done by the users so that they able to identify with one look which are the negative figures in an
excel sheet
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ACCOUNTING SYSTEM AND PROCESS
Question 3
Spreadsheet of data and report areas
While preparing excel spreadsheets for inputting accounting data, the accounting
professionals makes it sure that the accounting information which is more of a financial data and
calculations are kept in a separate area as to the area where the reports and analysis of the same
are made (Parker, 2014). This is primarily done so as to ensure that there is clarity in
presentation and the financial data does not gets mixed up with the report section. In addition to
this, this separation of financial information and report part also facilitates comparative study of
the financial data and its analysis. If report and the financial representation part gets mixed up
errors are bound to happen which will not be favorable for the organization. It is to be
understood that accountants nowadays use spreadsheets to record information, enhance results,
optimize performance level and are very useful in the decision-making process (Gracy, Zeng &
Skirvin, 2013). If any part of this spreadsheet is mixed up and errors happen then all the above
mention areas will be affected especially decision-making process which is key for an
organization’s development and growth. Such type of separate report and separate financial data
operation is quite useful when accounts are being maintained for inventory management. An
example of spreadsheet is given below:
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