Accounting Information System Assignment Solution - Semester 1, 2024

This document presents a comprehensive solution to an Accounting Information System assignment. It covers a range of topics including the use of spreadsheets for data management, formatting, and calculations. The solution demonstrates the application of the IF function and periodic inventory systems. It includes examples of journal entries, such as those for accounts receivable and bad debt allowance, and discusses the receivable turnover ratio. Furthermore, the assignment analyzes the financial statements of Wesfarmers, including comprehensive income, dividends, per-share profit, equity return, and risk mitigation strategies. The analysis also includes working capital ratio and profit after tax, concluding with a recommendation regarding investment potential. References to relevant accounting literature are also provided.

Running head: ACCOUNTING INFORMATIONSYSTEM
Accounting information system
Name of the University
Subject code and name
Student Name and ID
Assignment Task Number
Author Note

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Table of Contents
Answer 1:................................................................................................................................................3
Answer 2:................................................................................................................................................3
Answer 3:................................................................................................................................................4
Answer 4:................................................................................................................................................4
Answer 5:................................................................................................................................................5
Answer 6:................................................................................................................................................5
Answer 7:................................................................................................................................................7
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Answer 11:............................................................................................................................................10
Answer 12:............................................................................................................................................11
Answer 13:............................................................................................................................................11
References:............................................................................................................................................14

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Answer to question 1:
Naming the cells under the spreadsheet enables the users to use it as per their preference or
requirement (Baños-Caballero, García-Teruel & Martínez-Solano, 2014). For instance, the data in the
cells can be updated, edited or formatted. Further, it can be used for auditing and calculation.
Answer 2:
Negative numbers are expressed with minus symbol, parentheses or with red colour within
brackets. It can be expressed as above by selecting the negative number from the number or currency
option after selecting the cell range. Instead of showing the negative number with minus symbol, it is
shown with red colour and within bracket to represent the data more clearly and make it more visible.
Example showing the negative numbers within bracket is shown below –

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Answer 3:
As the worksheet hold raw data as well as the data after it is processed, the user will not be
able to differentiate the data after and before processing. Therefore, expressed it through different
area for the data and for the report is a better way of presentation.
An instance where the data are shown in under both areas is as follows –

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Answer 4:
IF function provides the user with the data that tells about the fulfillment of criteria;
Generally, IF function provides the results in two forms that is ‘TRUE’ and ‘FALSE’. TRUE
represents the positive result whereas FALSE represents negative results.
Instance of IF function with result – Normal view

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IF functions - formula view
Answer 5:
Periodic systems of the inventory:
Under this system, it is unlikely to maintain and document the updated records for each
transaction of buy and sold. Through one entry the record is updated at the closing of the period.
The instance is given below -
Answer 6:
Fancy Footwear- Adjusted spreadsheet as normal view:

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Fancy Footwear- Adjusted spreadsheet as formula view

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Statement of Income in normal view:

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Statement of Income in formula view:

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Balance Sheet in normal view:

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Balance Sheet in formula view:

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The spreadsheet usages as accounting tools –
 It can be used for budgeting and business accounting
 Can be used for calculations, creating charts and graphs
 Interpret and explore data for analysis and drawing conclusions
 For planning and modeling
 Preparing invoices, wage sheets
Answer 7:
Inventory in the normal view: