Accounting Systems and Processes: Comprehensive Financial Report

This comprehensive report delves into accounting systems and processes, offering a detailed analysis of financial statements, including income statements and balance sheets. It explores key concepts like the use of cell references, negative number representation, and error prevention in spreadsheets. The report examines the application of the IF function, periodic inventory systems, and the calculation of bad debts using both the allowance and write-off methods. It assesses the financial performance of an organization, focusing on trade receivables, solvency, and liquidity. Furthermore, the report includes a case study of Wesfarmers group, examining its statement of comprehensive income, earnings per share, dividend policies, risk management, return on equity, corporate governance, and sustainability practices. The analysis also covers working capital ratios and net profit after tax, culminating in a recommendation for investment. The report references several academic sources to support its findings.

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
Revised Data:.................................................................................................................................19
Question 9:.....................................................................................................................................19
Question 10....................................................................................................................................20
Question 11....................................................................................................................................21
Question 12....................................................................................................................................21
Question 13....................................................................................................................................22
Reference List................................................................................................................................26

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ACCOUNTING SYSTEMS AND PROCESSES

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ACCOUNTING SYSTEMS AND PROCESSES
Question 1:
Replacing of cell references with names helps user in defining and providing them with
accurate and appropriate information. Incorporated formula used in the cells becomes
meaningful only when they are named (Jia & Sun, 2015). This helps in creating a proper
correlation between various listed items.
Question 2:
Using minus sign and highlighting the figures with particular color such as red or green
will help in displaying negative numbers in bracket. Negative numbers are general displayed in
brackets by accountant because to show some unfavorable variances and making some credit
entries in any particular account (Averinà et al., 2014).

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ACCOUNTING SYSTEMS AND PROCESSES
Question 3:
It is certainly possible that error can be incurred while performing financial study. Separation of
spreadsheets into report area and data entry areas would ease users and prevent them from
committing any errors. Separation of area would help in systematic entry of data and the
accuracy of information is depicted in the report area.

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ACCOUNTING SYSTEMS AND PROCESSES
Question 4:
IF function is one the most popular function that is incorporated in Excel that make use of
logical test and facilitates logical comparison. There are two results obtained by performing IF
function that is the result and false result.
PERIOD Particulars Amount Remarks
September'17
Sales Revenue, less,
Total Expenses 54600
=IF(C7>0,"NET
PROFIT","NET LOSS")
September'17
Sales Revenue, less,
Total Expenses -43700
=IF(C8>0,"NET
PROFIT","NET LOSS")

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ACCOUNTING SYSTEMS AND PROCESSES
Question 5:
Updating of inventories are done on periodic basis using the periodic system of
inventories. Cost of goods sold under this particular system is calculated by adding purchase mad
by organization to the inventories at beginning periods and then subtracting inventories value at
end of period. An organization employing periodic inventory system has both advantages and
disadvantages. No permanent employees are required to make physical count of incentives and
therefore this method is less expensive.
Question 6:
Normal view:
Formula View:

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ACCOUNTING SYSTEMS AND PROCESSES
Normal view:

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ACCOUNTING SYSTEMS AND PROCESSES
Formula View:

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ACCOUNTING SYSTEMS AND PROCESSES
Normal view:

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ACCOUNTING SYSTEMS AND PROCESSES
Formula View:

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ACCOUNTING SYSTEMS AND PROCESSES
Question 7:
Normal View: