Comprehensive Report: Accounting Systems and Processes Overview

This report provides a comprehensive analysis of accounting systems and processes. It covers various topics, including spreadsheet applications, such as cell referencing and the IF function, and their role in financial reporting. The report also examines periodic inventory systems, calculations of cost of goods sold, and the importance of accounts receivable in assessing a firm's financial position. Furthermore, it delves into the financial performance of Wesfarmers, analyzing its statement of comprehensive income, working capital ratio, and earnings per share, offering insights for investment decisions. The report highlights the use of formulas, data organization, and financial ratio analysis to understand and evaluate a company's financial health and operational efficiency.

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Accounting systems and Processes
Name of the Student:
Name of the University:
Author Note:

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ACCOUNTING SYSTEMS AND PROCESSES
Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Question 5........................................................................................................................................6
Question 6:.......................................................................................................................................7
Formula View:...............................................................................................................................10
Question 7......................................................................................................................................13
Question 8......................................................................................................................................18
Question 9:.....................................................................................................................................19
Question 10....................................................................................................................................20
Question 11....................................................................................................................................21
Question 12....................................................................................................................................21
Question 13....................................................................................................................................21
References:....................................................................................................................................25

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Question 1
The procedure of identifying the spreadsheet cells:
The process of replacing cell referencing with the help of names aid in creating formulas
that are understandable and can be maintained. The utilization of names would definitely support
users in up gradation, audit and management of the items. The primary purpose of referencing
cells could be very easily understood by using the names. Identification of the place or location
that aids in the realization of name without qualification refers to the scope of location (Fullerton
et al., 2014). The management of defined names in workbook can be done by using dialog box.
Gross Profit Computation:-
Particulars Amount
Revenue generated from sales $50000
Less: Goods sold cost $35000
GROSS PROFIT $20000
Question 2
The popular method of displaying negative numbers must be done in brackets by using minus
sign or by the process of red color highlight or by coloring it. Accountants highlighting negative

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ACCOUNTING SYSTEMS AND PROCESSES
numbers inside brackets very directly indicate credit entries and in times variables which are
unfavorable in organization are also used inside brackets.

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Question 3
In the process of creating a spreadsheet with an entirely different area for report and an
area for data entry, an accountant would definitely minimize or reduce the errors that are a
common happening in the case of financial reporting. Right management of data entry would
definitely be facilitated by this. Report and data entry area if done in separate areas then it would
help in removing mistakes and discrepancies. Incorrect and with error information that is
incorporated within spreadsheets will lead to tremendous risks in business. By creating a
spreadsheet the entry system would become more systematic in nature and the recording of data
would become much easy.
Question 4
IF function is a very popular function that is used in Excel and leads to a logical
comparison between expectations out of users and value.

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ACCOUNTING SYSTEMS AND PROCESSES
The advantages of using an IF function is that it provides a clear view of the information
and also performing function, that is why it can be put under the category of conditional
functioning. An user can very easily claim whether the conditions are met or not with the help of
the IF function. It is possible for a statement to have more than one result and the first result is of
a truthful comparison and the second result is about false comparisons. One of the major
advantages of IF function are valuation of errors and along with numbers and text. Utilizing
multiple functions of IF enable an user to make the comparison in a wider way.
PERIOD Particulars Amount Remarks
September'17
Sales Revenue, less,
Total Expenses 15600
=IF(C7>0,"NET
PROFIT","NET LOSS")
September'17
Sales Revenue, less,
Total Expenses -18700
=IF(C8>0,"NET
PROFIT","NET LOSS")
Question 5
Book keeping of inventory done on a periodic basis is called periodic inventory system. The
number of inventories when physically counted, in such an event the general ledger is updated
with the final balance of the inventories with the help of such inventory system. In purchase
account all the purchases are recorded that are done in between the counts of physical inventory
under periodic inventory system. The final cost of inventory is adjusted with the balance of the
purchase account. Under the provision of periodic inventory cost, the formula for calculating

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cost of goods sold is calculated by adding purchase and the starting inventory balance. The
formula for calculating the cost sold goods sold under the period inventory system are
Cost of goods sold= Opening inventory balance – closing inventory balance +
Purchase
For example the opening or starting balance of ABC Corporation is $98000 and the final
physical inventory count is recorded at $70000 and also a purchase of $120000 is done.
Opening balance= $ 25000
Purchase= $ 175000
Closing balance= $ 30000
COGS= ($ 25000 + $ 175000 - $ 30000) = $ 170000
Question 6:
Normal View:

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Formula View:

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