Accounting Information Systems

This homework assignment provides solutions to a series of questions related to accounting information systems. The questions cover various topics including spreadsheet functionality (IF function), inventory systems (periodic, FIFO, LIFO), bank reconciliation, bad debt estimation, and financial statement analysis of Wesfarmers Limited. The solutions demonstrate the application of accounting principles and techniques through detailed explanations, calculations, and journal entries. The assignment also includes a discussion on common mistakes in corporate spreadsheets and an evaluation of Wesfarmers Limited's financial position, including return on equity and working capital ratio. The solutions are presented in both normal and formula views for clarity. The document is clearly structured with answers to each question presented sequentially.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Course Code:

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ACCOUNTING INFORMATION SYSTEM
Answer to Question 1
Cell Name

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ACCOUNTING INFORMATION SYSTEM
Answer to Question 2
Negative Value

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Answer to Question 3
The spreadsheet is divided into two halves- first half denotes the data area and the second half
contains report along with the formulae. The excel sheet contains data list listed in a sequence where the
data has been written, on the other hand all the calculations done on the basis of data which is collected
by a person applies different formulae (Hall, 2012). Use of IF function is done in the report area.
Therefore, by changing the data in the first half, all the calculations are done in the report area of the
sheet.
This can be explained by an example such as, expense data and sales data are given in the data
area with its respective values. However, if a person wants to calculate the net income based on the
provided data, then he has to add one column by using formula which can be done very easily. The
following method is depicted in the screenshots given below:

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Step 1

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ACCOUNTING INFORMATION SYSTEM
Step 2

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Answer to Question 4
IF Function

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There are number of YouTube video which shows the actual functionality of the IF function and
where it can be used. According to the video, IF function portrays a particular scenario made in the table
of data which shows the results if it is true or not. The above mentioned YouTube channel is clearly
showing the complete functionality of IF with the help of a cursor.
Answer to question 5
Periodic systems
System which updates the inventory after the end of a particular time period is called Periodic
Inventory System. This system of inventory monitoring keeps track of the details of goods in an inventory
of a fixed period (Drury, 2013). There is no need to keep the records of every data which is updated for
the inventory and also the prices of goods which are sold. By the help of this system accounting is done as
it helps in the journal entries of a specified period of time.

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Answer to Question 6
Part A:

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Part B:
Normal View

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Formula View