Business Accounting: Sales, Inventory, and Cash Management

Running head: BUSINESS ACCOUNTING
Business Accounting

BUSINESS ACCOUNTING 2
Table of Contents
Introduction 3
Topic 3 3
3.1: Sales and purchases 3
3.2: Accounting for inventory 4
3.3: Cash management 5
Conclusion 6
References 7

BUSINESS ACCOUNTING 3
Introduction
This reflection report presents the learning related to topic 3 that covers the regarding sales and
purchases, accounting for inventory and cash management. It also defines the strength and
challenges related to business accounting. It also demonstrates the skills and competencies
related to accounting.
Topic 3
3.1: Sales and purchases
I have gained my understanding regarding the retail business operation. In this way, I have
learned that the company initially acquire inventory, sell inventory and then collect cash.
Through the course, I have learned that determination of profit is key objectives for a company.
I have built my knowledge regarding the retailing and the GST. In such a manner, it is evaluated
that retail business must register for an Australian business number in case sales of goods exceed
$75000 (Weygandt, Kimmel and Kieso, 2015). This topic has developed my accounting skills. I
have also built my understanding with regards to tax invoices. In such manner, I have learned
that tax invoices are required while sales are over $75. I have also built my knowledge about the
adjustment notes, accounting for sales transactions, and sales return and allowances. This
knowledge would be utilized by me to improve my professional career. During this course, I
have a lack of understanding regarding the cash settlement discount and trade discount. Hence, I
faced challenges in cash settlement and trade discount. Throughout this course, I have increased
my knowledge about the freight outwards, accounting for purchase and cost of sales, periodic
inventory system and perpetual inventory system. This would be beneficial for enhancing my
professional and personal career. In this course, I have improved my learning regarding the
principles of the internal control system and manual accounting systems. This would be