Accounting Systems & Processes

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Accounting systems and Processes
Name of the Student:
Name of the University:
Author Note:

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ACCOUNTING SYSTEMS AND PROCESSES
Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Question 5........................................................................................................................................6
Question 6:.......................................................................................................................................7
Formula View:...............................................................................................................................10
Question 7......................................................................................................................................13
Question 8......................................................................................................................................18
Question 9:.....................................................................................................................................19
Question 10....................................................................................................................................20
Question 11....................................................................................................................................21
Question 12....................................................................................................................................21
Question 13....................................................................................................................................21
References:....................................................................................................................................25

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ACCOUNTING SYSTEMS AND PROCESSES
Question 1
Naming cells in spreadsheets:
Replacing cell references with names helps in making formulas much easier to
maintaining and understand. Using name would help users in easily auditing, updating and
managing the items. Purpose of cell references can be easily understood by using names.
Location that helps in recognition of name without qualification helps is referred to as scope of
location (Fullerton et al., 2014). Defined names in workbook can be managed by using name
manager dialog box.
Gross Profit Computation:-
Particulars Amount
Revenue generated from sales $24500
Less: Goods sold cost $4500
GROSS PROFIT $20000
Question 2
Negative numbers can be displayed in brackets using minus sign or by coloring it such as
highlighting it with red color. Displaying negative numbers in brackets by accountant is simply

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ACCOUNTING SYSTEMS AND PROCESSESindicating of credit entries and sometimes variables that are not favorable to organization are also
used in brackets.

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ACCOUNTING SYSTEMS AND PROCESSESQuestion 3
Designing the spreadsheet with complete separate area for report and data entry area by
accountant would help in minimizing the errors ascertained in financial reporting. This would
facilitating proper management of data entry. Separation of report and data entry area would help
in eliminating discrepancies and mistakes. Tremendous risks would be attributable to business if
improper and incorrect information is generated from spreadsheets (Atar&Birman, 2017).
Creation of spreadsheet would make entry system systematic and easier recording of data.
Question 4
One of the most popular function in Excel is use of IF function that facilitated logical
comparison between what is expected by users and value.
PERIOD Particulars Amount Remarks
September'17
Sales Revenue, less,
Total Expenses 45300
=IF(C7>0,"NET
PROFIT","NET LOSS")

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ACCOUNTING SYSTEMS AND PROCESSES
September'17
Sales Revenue, less,
Total Expenses -21000
=IF(C8>0,"NET
PROFIT","NET LOSS")
Statement of IF function is regarded as conditional functioning that helps in displaying
information and performing function. User can command whether the conditions are met or not
using the IF function. A statement can have two results and first results occurs when comparison
is true and second results occurs when comparison is false. Text and values can be evaluated
suing IF functions along with error evaluation. Users are able to perform multiple comparisons if
multiple IF functions are used together.
Question 5
Periodic inventory system is a system of inventory where updating is done on period
basis. In the event of conducting physical count of inventories, the ending balance of inventories
is updated in general ledger using such inventory system. All the purchase made between the
physical inventory counts under the periodic inventory system are recorded in purchase account.
Purchase account balance are adjusted to ending inventory cost after shifting to inventory cost.
Under the periodic inventory cost, cost of goods sold is calculated by adding purchase and
beginning inventory balance. The formula for calculating the cost sold goods sold under the
period inventory system are
Cost of goods sold= Opening inventory balance – closing inventory balance +
Purchase