University Accounting Systems and Processes Homework Solution

This document presents a comprehensive solution to an accounting homework assignment, covering a range of topics within the field. The assignment addresses plagiarism, providing a definition and emphasizing the importance of original work. It includes practical exercises involving spreadsheet representations and explores online accounting resources, such as AccountingCoach and Coursera's financial accounting courses. The solution also examines professional accounting bodies, like the Institute of Public Accountants, and integrates a work-integrated assessment based on the use of accounting software in a food manufacturing company, highlighting the benefits of IT in streamlining operations. Furthermore, the assignment delves into the ABC Learning case study, analyzing financial reports, identifying ethical issues such as lack of governance and improper disclosure, and explaining key accounting concepts, including account balances, adjusting entries, current and non-current liabilities, and financial ratios. The document concludes with a crossword puzzle and references to relevant accounting literature.

Accounting System and Processes

Q1Plagiarism
Plagiarism is regarded as the use of creative work of other people and presenting them as
one’s own. The universities have adopted strict guidelines for plagiarism as it can cause honest
students to suffer who complete their work on their own. The students adopting the use of
plagiarism can get undue advantage of getting better academic score through using other people
work. In this context, the students are required to research in libraries and access to electronic
databases for collecting data for their academic work and restrict from copying other people
work (McCabe, Butterfield and Trevino, 2012).
Q2 Pasting spreadsheets in doc files
Formula View Excel Spreadsheet:
Adding Numbers in the column
22 55 66 75 96
23 56 67 76 96
24 57 68 77 96
25 58 69 78 96
26 59 70 79 96
27 60 71 80 96
28 61 72 81 96
29 62 73 82 96
30 63 74 83 96
31 64 75 84 96
Normal Excel Spreadsheet:
Adding Numbers in the column
22 55 66 75 96
23 56 67 76 96
24 57 68 77 96
25 58 69 78 96
26 59 70 79 96
27 60 71 80 96
28 61 72 81 96
29 62 73 82 96
30 63 74 83 96
31 64 75 84 96
265 595 705 795 960

Q3 Accounting resources on the Internet
 Accounting Coach: The website has URL https://www.accountingcoach.com/. It provides
knowledge of basic accounting concepts and terminologies to the students, business
professionals and other readers.
 Introduction to Financial Accounting: The website has URL
https://www.coursera.org/learn/wharton-accounting. It provides an introduction to the
concept of financial accounting and the basic online accounting courses available for the
students.
 Learn-accounting.com: The website has URL http://www.learn-accounting.com/ and
provides knowledge about the basics of financial accounting such as double entry concept
and accounting principles. It also helps in developing an understanding of the various
types of financial statements and their purposes.
 My Accounting Course: The URL is http://www.myaccountingcourse.com/ and provides
information about the accounting terms, accounting basics, accounting principles,
financial statements and ratio’s.
 The Auditors: The URL is http://retheauditors.com/ and provides current knowledge of
the accounting methods adopted and followed by Big4 audit firms. It also helps in
developing knowledge of the role and responsibilities of the auditors to the capital
markets globally.
Q4 Professional accounting bodies
The Institute of Public Accountants is an Australian professional accounting organization
dedicated for servicing small businesses in Australia. The organization works actively for
supporting the productivity, growth and development of SME’s sector in Australia. The
organization has a resource of ‘professional assistance’ that provides guidance to the students for
supporting the accounting functions and activities of SME’s.
Q5 Work Integrated Assessment
The business organizations are adopting the use of latest information technology devices
for performing their operations efficiently and quickly. The use of IT devices enables the
businesses to attain a competitive advantage in the market place by improving the efficiency of
their operational processes. In this context, my previous workplace, a food manufacturing
company, also adopts the use of latest information technology devices for monitoring their daily
operations. The company also incorporates the use of accounting software system for managing
its accounting data and recording the business transactions such as payments, stock and asset
details. The accounting software system has helped the company to in easy generation of
customer orders, invoices, and financial statements through effectively integrating the flow of
information across its various departments. The company had developed a good computing
architecture for maintaining and controlling its diverse business operations through the

computing technologies. The company has various departments such as finance, HR, marketing,
production and sales that are integrated with each other through the use of computing
technologies by the company. The use of compute software such as AIS (Accounting
Information System) enables the company to facilitate interaction among its various departments
and streamlining the information flow from one department to other. There is less chance of
manipulation of data as all accounting information is electronically processed without much
manual involvement. The company has also effectively established the standards and procedures
for use of computing devices across the various departments. The standards provide guidelines to
the employees reading the use of computing technologies that helps them to understand the
various technologies and their advantage to the business performance. The standards also
provide information to the employees about the data security and integrity while adopting the use
of computing technologies. Thus, it can be said that the company has maintained an
appropriative computing environment with providing the availability of all the latest computer
technologies and devices (Abraham, Baets, Koppen and Nickolay, 2006).
Q6 ABC Learning and ethics - ABC Learning Case Study
a. The major financial reports of a corporation are as follows:
 Balance Sheet: It depicts the financial position of en entity on given date. It presents
information regarding the assets, liabilities and equity position of an entity before the
end-users.
 Income Statement: It reports the company profit or loss position over a specified period
of tie. It help the end-users to access the net profit or loss realized by an entity over a
period of time.
 Cash Flow Statement: It represents the movement of cash flows from operating, investing
and financing activities of a business entity.
 Statement of Changes in Equity: It discloses information about the movement in owner’s
equity over a specified period of time through stating net profit or loss, share capital
issues, dividend payments and impacts of change in accounting policies (Porter and
Norton, 2014).
b. The ABC learning, a childcare organization has been collapsed in the year 2007 due to poor
corporate governance and unethical practices. The company failure presents an example in the
context of ignorance of sound accounting policies by corporations. The key lessons learnt from
its collapse are that a company should not ignore its daily goals realization in the event of
achieving a grand vision. It should correctly value its intangible assets, goodwill and never
develop unrealistic growth strategies (Thomson, 2008).
c. The 3 ethical issues from the case study:

 Lack of Governance: The ABC has not maintained a proper corporate governance system
that provides guidelines to the employees about the importance of conducting the
business operations in ethical manner.
 Irregular Accounting Policies: The Company has not adopted sound accounting policies
for valuing its intangible assets and goodwill that led to its downfall.
 Improper Disclosure: The company financial statements have not provided extensive
disclosure regarding its operations and procedures such as about related party
transactions (Thomson, 2008).
Q.9. The four accounts with normal debit balances are assets, expense, loss and owners’ drawing
while with credit balances are liabilities, revenue, gains and owner’s equity (Porter and Norton,
2014).
10. Blank Crossword
The clues for the crossword are:
Down:
 The financial statement that reports an entity financial position at a specific point of time.
 The resources possessed by a company
 The item in the balance sheet reporting an entity obligations
Across
 The accounting method for measuring profitability and is recognized as less effective
than accrual basis.
 The allocation of cost of equipment and buildings of an entity from the balance sheet to
income statement over the useful life of assets.
Solved Crossword

B L
C A S H I
L A
A A B
N S I
C S L
D E P R E C I A T I O N
T T
S I
E
S
Q12 Types of adjusting entries
There are two types of adjusting entries:
A: Accrued Expenses
For example: Salary Expense 2000
To Accrued Salary Expense 2000
B: Accrued Revenue
For example: accrued interest income 1000
To Interest income 1000
Q13 Current and non-current liabilities
The current liabilities refer to obligations of accompany that is required to be paid within
a period of 12 months such as accounts payable or accrued expenses while all other liabilities of
accompany are categorized under non-current liabilities (Porter and Norton, 2014).
Q14 Ratios
The current ratio examines a company ability to meet its liabilities with its asset resources
(Porter and Norton, 2014). For example, a company has current liabilities of 1000 and current
assets are 2000 then it can be calculated as:
Current ratio=Current asset/Current Liability
Current ratio=2000/1000
Current ratio=2

References
Abraham, A., Baets, B., Koppen, M. and Nickolay, B. 2006. Applied Soft Computing
Technologies: The Challenge of Complexity. Springer Science & Business Media.
McCabe, D., Butterfield, K. and Trevino, L.K. 2012. Cheating in College: Why Students Do It
and What Educators Can Do about It Cheating in College. JHU Press.
Porter, G.A. and Norton, C.L. 2014. Financial Accounting: The Impact on Decision Makers.
Cengage Learning.
Thomson, J. 2008. Lessons learned from ABC. Retrieved 27 August, 2017, from
http://www.theaustralian.com.au/business/business-spectator/lessons-learned-from-abc/
news-story/573a6ff5085d64f7b9c146c87d22d225