Accounting System and Process - Finance Module, Semester 1

This assignment solution covers key aspects of accounting systems and processes. Part A focuses on spreadsheets, detailing their benefits (data organization, calculations, collaboration) and drawbacks (security, user access). Part B explores inventory management, comparing periodic and perpetual systems, and applying FIFO, LIFO, and average cost methods to calculate ending inventory and cost of goods sold. Part C addresses bank reconciliation, including items that reduce bank and cash balances, and provides journal entries. Part D delves into bad debt management, comparing allowance and write-off methods, and performing financial ratio analysis (net profit, current, debt-equity) and profitability/earnings per share chart analysis to assess a company's financial health and investment potential. The assignment concludes with a recommendation for investment based on the financial analysis.