Accounting System and Processing: Finance Assignment Solution

This assignment solution delves into various aspects of accounting and financial management. It begins with a discussion of plagiarism, followed by instructions on pasting spreadsheets into Word documents. The solution then provides links to online accounting resources. It explores the choice of CPA Australia as a relevant organization and describes the use of an ERP system (NetSuite) in a past workplace. The assignment covers key financial statements (income statement, balance sheet, cash flow statement, and statement of equity), along with an analysis of ethical issues related to financial reporting, including the ABC Learning debacle. The solution includes handwritten solutions and scanned documents for various questions. The document also provides examples of adjusting entries (unearned revenues and accruals), explains the difference between current and non-current liabilities, and calculates the current ratio. The assignment concludes with a crossword puzzle, financial reports and references.

ACCOUNTING SYSTEM AND PROCESSING
[Pick the date]
STUDENT ID

Table of Contents
Question 1.................................................................................................2
Question 2.................................................................................................2
Question 3.................................................................................................3
Question 4.................................................................................................4
Question 5.................................................................................................4
Question 6.................................................................................................5
Question 7.................................................................................................7
Question 8...............................................................................................11
Question 9...............................................................................................13
Question 10.............................................................................................14
Question 11.............................................................................................17
Question 12.............................................................................................19
Question 13.............................................................................................20
Question 14.............................................................................................21
Question 15.............................................................................................21
Reference................................................................................................26
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Question 1
Plagiarism
It is an act of stealing another student’s/expert’s work, design or thoughts and representing it as
his/her own work without taking the permission or authorization from the original /actual person
then it is termed as plagiarism. Further, when the original student is going to submit the work
then his own created work would be caught into plagiarism when the university is checking the
work with plagiarism detection software such as Turnitin, safe assign and so forth. In this case,
the credit of work is not given to the original student and hence, the plagiarism or collusion
would be considered unfair to honest students.
Question 2
Pasting Spreadsheet into word file
 Direct copy from excel with the help of CTRL+C and then into word file with the help of
CTRL+V function, the desire part would be pasted into word file. In this case, the copied part
would be editable in the doc file also.
Gender Frequenc
y
Percentage frequency
Female 53 53
Male 47 47
Total 100 100
 Direct copy from excel with the help of right click and then copy and then into word file with
the help of paste special function (as per desire – number, formula, formatted, picture and so
forth) the desire part would be pasted into word file.
Gender Frequency Percentage frequency
Female 53 53
Male 47 47
Total 100 100
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Question 3
Accounting Use Resources
1 This is the website which
belongs to New Jersey
Institute of Technology
and tends to provide
various online accounting
courses for free which
foster learning at the click
of a button.
http://ocw.njit.edu/som/acct/acct-615-anandarajan/index.php/
2 This is the website which
acts a repository of
knowledge using which
one can not only clear
concepts but also has a tie
up with Utah State
University.
http://www.principlesofaccounting.com//
3 This is the website which
offers easy and simple to
understand tutorials with
regards to various
elementary concepts and
is best for beginners.
http://misscpa.com//
4 This is suitable for both
professionals and students
with video tutorials on
various topics. Also, there
are various quizzes
coupled with problems
http://www.accountingcoach.com/
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which tend to test the
concepts learned.
5 This is an informative
website which is tailor
made for online teaching
and tends to disseminate
knowledge through the
use of power points
followed by three quizzes
at the end to test learning.
http://www.smallbizu.org/a101/
Question 4
CPA Australia would be the appropriate choice of organization. A useful page on the website
relates to the various tools in the form of template that are of immense use in financial reporting.
Further, the website offers a host of other learning resources with regards to bookkeeping and the
best practices to be followed.
Reference: https://www.cpaaustralia.com.au/professional-resources/reporting
Question 5
The past workplace I was part of had an ERP system known as NetSuite. Even though this ERP
primarily started as being limited to only accounting but over the time, the functionality has
grown and it catered to a variety of organizational needs such as customer relationship
management coupled with analytics. This was immensely useful for the organization considering
that our organization was service based. Also, we had various offices spread across Australia due
to which there was a need to a centralized system which could maintain coordination and provide
updates in real time. This role was faithfully completed by this ERP which ensured that across
multiple offices various key functions could be integrated (Bodies, Merton & Cleeton, 2009).
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Besides, being an accounting ERP, the accounting features along with inventory management
were particularly useful. Further, the ERP not only provided customized reports but based on the
current situation, it would offer insight on the best manner to manage inventory along with
updates on accounts in a user friendly manner. Further, even though the key financial statements
were prepared only on periodic intervals, but using this ERP solution, it was possible to view
various financial statements at the click of a button. As a result, this ERP had tremendous
applications not only for reporting but also for management accounting (Bodies, Merton &
Cleeton, 2009).
Question 6
Part 1
A company needs to provide periodic updates to the variety of stakeholders who have
information needs which assists them in decision making. The financial performance of the
company is captured through the financial statements which are prepared in accordance with the
relevant accounting standards. One of the key financial statements is the income statement which
indicates the extent of profitability of the business operations and the exact profit that the
business is generating. The net income generated becomes critical primarily on two counts
namely determination of EPS (Earning per share) and also the dividend to the shareholders
(Peirson, 2014).
The financial position of the company is represented using the balance sheet which provides
information regarding the asset, outstanding liabilities and also equity. This is critical since it
provides vital clues with regards to the overall liquidity in the company coupled with capital
structure. The capital structure tends to represent the level of leverage that the company has
while liquidity determines the ability to meet obligations of lenders and suppliers. It is essential
that the financial position of the company must be sound or else it would face a difficult type
from shareholders, lenders and suppliers (Brigham & Houston, 2011).
Another key financial statement is cash flow statement which summarizes the cash generation or
cash used for mainly three activities i.e. investing, operations and financing. This is critical as at
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times the profits of the company may not convert into cash flows leading to cash crunch and
potential bankruptcy. Further, the statement of equity is vital that it highlights the pivotal
changes with regards to equity which the stakeholders must know in order to determine whether
equity has been diluted or not for generating finances (Brigham & Houston, 2011).
Part 2
The key takeaways from the ABC Learning debacle are summarized below.
 While taking management decisions, it is of utmost importance that management should
consider the underlying business strengths and pursue a strategy which leverages the
same and is capable of generation of wealth in a sustained manner.
 The related party transactions tend to raise questions on credibility of management of the
company and hence they should be ideally minimized and all the transactions should be
captured in the notes to account so that this information is available in the public domain.
 The management plays a key role in organizational affairs and often frauds in companies
are with the collusion of the top management. Hence, having an ethical management goes
a long way in sound corporate governance and better returns for the shareholders (Arens,
et. al., 2013).
Part 3
The critical ethical issues have been recognized and highlighted below (Gitman, Juchaou
&Flanagan, (2011).
 The disclosure level of the management needs to be high which would result in higher
credibility of the management and lower the agency costs. Further, the various disclosures on
transactions with related party are critical.
 The financial structure of firms becomes complicated often for tax considerations but in a bid
to save on tax, the firms tend to increase chances of frauds and hence it is advisable that a
balance needs to be secured between the two.
 The level of debt leveraging needs to be managed and for this it is imperative that a healthy
amount of promoter equity should be present which tends to highlight the commitment of the
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promoters to carry the business forward as their own personal interests are aligned with the
fortunes of the company.
Question 7
A. Manual handwritten solution
App used for the scanning of solution – Camscanner
Type of account
Income statement
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Drawing Computation
Balance sheet
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B. Spreadsheet of the problem
 Normal view of spreadsheet
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 Formula view of spreadsheet
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Question 8
A. Manual handwritten solution
App used for the scanning of solution – Camscanner
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