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Traditional accounting Systems Assignment

   

Added on  2021-05-31

14 Pages4134 Words65 Views
CALTEX AND COMPAQ BUACC5937 SEMESTER 1 2018NAME:Priya Sharma STUDENT ID:30333925NAME: Megha Arora STUDENT ID: 30334804

Priya Sharma ID-30333925 BUACC5937 SEM1 2018Megha Arora ID-30334804 Assignment 1 Table of ContentsTASK 1............................................................................................................................................41.1 Traditional accounting systems..............................................................................................4Advantages..................................................................................................................................4Easier to set up.........................................................................................................................4Applicable to all business........................................................................................................4Cheap.......................................................................................................................................4Disadvantages..............................................................................................................................4The human error......................................................................................................................4Time-consuming......................................................................................................................4susceptible to perils..................................................................................................................4inefficient recovery plans........................................................................................................41.2 Options for Smith Brothers........................................................................................................41.3 Accounting software packages..................................................................................................5XEROaccounting software.........................................................................................................5Wave accounting software...........................................................................................................51.4 Excel or Databases.....................................................................................................................6Task 2 – CALTEX...........................................................................................................................62.1 Summary corporate governance Policy.................................................................................62.2 IT Governance Policy to shareholders...................................................................................72.3 IT Governance Policy to stakeholders.......................................................................................82.4 IT governance and the corporate governance statement............................................................9Task 3 – COMPAQ.......................................................................................................................103.1 Failure of controls....................................................................................................................10Premium pricing strategy.......................................................................................................10poor acquisition strategy and mergers...................................................................................10poor management...................................................................................................................10dot-com burst.........................................................................................................................103.2 Avoidance of Failures..............................................................................................................11Efficient acquisition strategy.................................................................................................11Caltex and Compaq 2

Priya Sharma ID-30333925 BUACC5937 SEM1 2018Megha Arora ID-30334804 Assignment 1 Effective management...........................................................................................................11Efficient utilization of resources............................................................................................11Effective market strategy.......................................................................................................11Elimination of middle men-...................................................................................................114.0 Reference.................................................................................................................................12Caltex and Compaq 3

Priya Sharma ID-30333925 BUACC5937 SEM1 2018Megha Arora ID-30334804 Assignment 1 TASK 11.1 Traditional accounting systemsThe traditional accounting system is basically the manual or paper-based recording of the dailytransactions such as prices, sales, the stock of a business or an organization (Bruno & Lapsley,2018). Efficient accounting process are essential to the successful growth and development ofany business and organization, however, traditional accounting systems have their advantagesand disadvantages in the long run they include (Schreiner, 2016)AdvantagesEasier to set up-traditional accounting system are easy to set up since it requires limitedresources such as paper for recording transactions and other business activitiesApplicable to all business-this accounting system is universal in the sense that any business canuse to perform crucial business activities Cheap-the traditional accounting system is cheaper in comparison with the computerized system,it requires far more resources which are easier to access and maintainDisadvantagesThe human error-traditional accounting system is prone to human error recordings that may befutile to the business growth and development Time-consuming- it takes a lot of time in recording and performing business transactions such asgeneration of reports and crucial documents (Guinea, 2017)susceptible to perils-records may be damaged easily by perils such as fire and water, losingcrucial informationinefficient recovery plans-its hard and expensive to implement recovery strategies since itinvolves duplication of the same record manually and maybe causing more errors 1.2 Options for Smith BrothersThe Smith brothers have an efficient option of switching from traditional accounting system tothe computerized system, which means the use of accounting software. Accounting softwareallows businesses to balance the books, reconcile their accounts, and actually understand wheretheir money is going. Not only is this important for making informed business decisions, but it’salso key for filing taxes correctly at the end of each year. Accounting software allows businessesCaltex and Compaq 4

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