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BACC211 Accounting Information Systems

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Added on  2020-04-29

BACC211 Accounting Information Systems

   Added on 2020-04-29

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BUSINESS REPORTDavid’s Used Car Business ReportStudents' NameCourse Title Instructor’s NameInstitutional AffiliationCity and State Date of Submission
BACC211 Accounting Information Systems_1
BUSINESS REPORTHaving read Mr David’s used car weird scenario i wish to attest that for real there exist mountains of problems in the whole operations that require immediate possible radicle surgery to save this business. Most of us will agree that the finished product item of sales as well as spare parts he trades in are indeed very expensive hence if not properly accounted forthere may exist possible crisis resulting from poor inventory and sales management that may further lead to business disclosure.I wish to point out that the three main problems that David used car business faces are;(a) Lack of accountability.(b) Lack of system, procedures, appropriate channel in our things ought to be done and finally(c) Limitation of appropriate information thus barring good decision makingIf these three problems are dealt with thoroughly then David business will be safely operating.Accounting for inventory is of great essence to David venture by look of things I can definitely state that there is no effective inventory control since there exist no physical activities trying to verify, authenticate and cater for completeness of the stocks i.e. the cars and the spare parts Lucas(2006.Pg. 23). David Steele is however seen to control stock through numerous paperwork sheets but due to the cumbersome nature of the transaction he seems not able to fully control. This leaves a loophole for inventory loss, damage, missing or even obsolescence. Paperwork means of control is not enough since it creates a chance for persons to maliciously change and corrupt the figures in the paper hence stealing from the company. The paperwork means of accountability which is seen to be used all over is prone to get worn out, catch fire or even become blurring. These paperwork data most likely do not have back up hence in case of these emergencies data relating to inventory gets lost hence lack of accountability.To curb David used cars inventory and whole system accountability there need to introduce an accounting inventory system that captures stock both for cars as well as spare parts that will be factoring all the processes from acquisition or purchase to sales. I suggest the configuration of the data to be just as similar as to that David uses. This will facilitate accounting for stocks whereby random stock take should be conducted now and then to authenticate the system stocks and that physically. This will fully control any aspect of malpractice as well as control the issue of FIFO hence obsolescence dealt with as well as
BACC211 Accounting Information Systems_2

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