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Assignment on Accounting Skills

   

Added on  2020-05-28

9 Pages1532 Words35 Views
Running head: ACCOUNTING SKILLSAccounting SkillsName of the Student:Name of the University:Authors Note:
Assignment on Accounting Skills_1
ACCOUNTING SKILLS1Table of ContentsQuestion 1: Depicting what is accounting with advantages and disadvantages........................2Question 2:.................................................................................................................................3A) Determining net income for the month of July:....................................................................3B) Determining the amount for Owner’s, Capital at July 31, 2014:..........................................3C) Determining the Balance Sheet at July 31, 2014:.................................................................3Question 3:.................................................................................................................................41. Depicting the units must be sold to break even:....................................................................42. Depicting the total sales needed to earn the profit of $60,000:..............................................43. Depicting the additional units that needs to be sold for accommodating the advertisementexpenses:....................................................................................................................................54. Depicting the new breakeven points in units for the company:.............................................5Question 4:.................................................................................................................................61. Preparing the cash budget for the months of July and August:..............................................62. Preparing separate schedules for expected collections from customers and expectedpayments for purchases of inventory:........................................................................................7Question 5: Explaining the analytics for Managerial Decision Making....................................7Reference and Bibliography:......................................................................................................9
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ACCOUNTING SKILLS2Question 1: Depicting what is accounting with advantages and disadvantagesAccounting is mainly identified to be a systematic process for identifying, measuring,recording and classifying financial information in balance sheet. The accounting measurecould allow the organisation in depicting its financial strength to the stakeholders, where allthe transactions conducted in the current fiscal year is portrayed. Weygandt, Kimmel andKieso (2015) mentioned that with the use of accounting principles companies are able tomeasure their progress and take relevant decision for attaining sustainable growth. However,Smith (2017) argued that due to the presence of loopholes in accounting companies are ableto use unethical measures to inflate their financial report. There are certain advantages andlimitation of accounting, which are depicted as follows.Advantages of AccountingAllows the use of comparative study by stakeholder for identifying financial strength ofthe companyAssisting management in making adequate decisionsAllows the depiction of financial information about the businessAllowing the organisation to facilitate loans by providing actual financial condition to theloan providerDisadvantages of AccountingMajor hindrance of accounting is ignoring the effect of price level changeIgnorance of the qualitative elements such as quality of management and labour force,which allows the organisation to fulfil production needs.Accounting could lead to window dressing, which indicate the manipulative measuresthat could be used by the organisation.
Assignment on Accounting Skills_3

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