Assignment 2: Analysis of Accounting Systems and Processes (ACC 566)

This document presents a comprehensive solution to Assignment 2 of the ACC 566 course, focusing on accounting systems and processes. The assignment delves into various aspects, including the use of Excel for accounting tasks, explaining cell referencing and the application of the IF function. It differentiates between perpetual and periodic inventory systems, highlighting their practical implications. Furthermore, the document addresses the benefits of using spreadsheets in accounting, while also acknowledging the associated risks. It explores methods for estimating bad debt, comparing the direct write-off and allowance methods. The role of computers in online retailing, using E-Bay as an example, is also discussed. Finally, the assignment analyzes the application of a balanced scorecard for performance evaluation, specifically using Qantas as a case study, examining its financial performance, remuneration, and strategic initiatives. The solution includes references to relevant academic sources.

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Subject Code: ACC 566
Subject Name: Accounting Systems and Processes
Assignment Task Number: 2
List of Questions Attempted: 13
List of Questions Not Attempted: 0

ACCOUNTING SYSTEMS AND PROCESSES
Acknowledgement:
The work in this assignment is my own work, and has not been plagiarised.
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Table of Contents
Answer to Question 1:.....................................................................................................................3
Answer to Question 2:.....................................................................................................................3
Answer to Question 3:.....................................................................................................................4
Answer to Question 4:.....................................................................................................................5
Answer to Question 5:.....................................................................................................................5
Answer to Question 6:.....................................................................................................................6
Answer to Question 7:.....................................................................................................................7
Answer to Question 8:.....................................................................................................................8
Answer to Question 9:...................................................................................................................13
Answer to Question 10:.................................................................................................................13
Answer to Question 11:.................................................................................................................14
Answer to Question 12:.................................................................................................................14
Answer to Question 13:.................................................................................................................14
References:....................................................................................................................................18
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Answer to Question 1:
The references are substituted by names in particular cells of a spreadsheet. The primary
reasons identified behind such substitution comprise of the ease of convenience and relationship
with the calculations and declarations represented in the specific spreadsheet (Bebbington,
Unerman & O'Dwyer, 2014). An example of substituting cell references by names is depicted as
follows:
Normal view:
Formula view:
Particulars Amount (in $)
Revenue 145000
Cost of revenue 96000
Gross profit =C4-C5
Answer to Question 2:
The negative numbers are exemplified primarily in the excel sheet through brackets in
red and the same is carried out especially in the below-depicted illustrations:
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ACCOUNTING SYSTEMS AND PROCESSES
Answer to Question 3:
For the sake of the accountants, a distinct bookkeeping or data entry is needed. This is
because it enables in representing single view of each single row. Consequently, in case of
report, a separate area is required for enabling the accountants to form the detailed reports
coupled with the needed source of data (Brusca et al., 2016). The range of data entry is used for
record of raw data, while the portion of report is used for transferring the record into meaningful
information.
A significant assertion in this context is that a separate area for record keeping is needed
to be formed for recording inaccurate bookkeeping of raw data in the spreadsheet. Thus, the
process of developing a separation area helps in easy recording of the raw data along with
eradicating the unnecessary information. The following spreadsheet illustration helps in clearing
out the idea:
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Answer to Question 4:
The “IF” function enables in giving projected intelligence to the program through which
the program could carry out the decision in relation to the developed criteria along with
ascertaining the course of the program. In the words of Ismail & King (2014), the ‘IF’ function
could be described as the function, which helps in providing the single value. If the criterion is
satisfied, it would be true and if the criterion is not met, the value would be incorrect. A
spreadsheet instance is gathered that has the application of the ‘IF’ function, which is depicted as
follows:
Answer to Question 5:
Perpetual inventory system Periodic inventory system
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Physical maintenance of the records is not
possible in case of the perpetual inventory
system, as the number of transactions would be
numerous at the unit during the period of
accounting (Loughran & McDonald, (2016).
In case of the periodic inventory system, the
users are enabled to keep manual record of the
account for each unit of inventory.
Under this system, continual updates are
inherent in the inventory journal or the general
ledger due to the occurrence of transactions
related to inventory (Monroy, Nasiri & Peláez,
2014).
In this system, the accounting entry related to
cost of revenue is not recorded in the period of
accounting until the occurrence of the physical
count, which is derived later for calculating the
cost of revenue.
Continual updates to the cost of revenue are
made at the time each unit of sale is carried out
under this system.
The cost of revenue is calculated in lump sum
at the end of the fiscal period under the
periodic inventory system (Öker & Adıgüzel,
2016).
Answer to Question 6:
In any form of the role of accounting, an individual could seek the benefit from using the
excel sheet in daily tasks. The small business owners do not possess adequate accounting
knowledge and they might find it complex to track the payments. With the help of spreadsheet,
easy solutions could be offered for tracking payments. In addition, spreadsheet enables in
utilising the analysis of money, which is incurred and the amount that is received (Simkin, M.
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Norman & Rose, 2014). In addition, spreadsheet helps an individual to segregate the cash
amount received on the part of the organisation in the accounting year. One more benefit of
utilising the spreadsheet is that organisations could link the spreadsheets together and it is
valuable in ascertaining cash flow. However, one of the benefits of spreadsheet in accounting is
its vulnerability to fraud, which might lead to huge losses and loss of control.
Answer to Question 7:
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Answer to Question 8:
Normal view:
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Formula view:
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