...transactions of a business entity in a chronological order. Accounting Accounting is the process of recording, classifying, reporting, analysing, interpreting and communicating of financial information to the stake holders. Accounting is the combination of all the 6 fields while bookkeeping is only a part of the accounting process. Double Entry System According to this system, every business transaction has a two-fold effect and that it affects two accounts in opposite directions. One of the two aspects is the benefit receiving aspect or “incoming aspect” (termed as Debit) and the other is the benefit giving aspect or “outgoing aspect” (termed as Credit). For every transaction, one account is to be debited and another account is to be credited in order to have a complete record of the transaction. The basic principle under this system is that for every debit, there must be a corresponding and equal credit and for every credit there must be a corresponding and equal debit. Following this principle, the arithmetical accuracy of the accounts can be checked by preparing a Trial Balance, where the total of Debits and Credits should tally. It is a scientific system maintaining a complete record of transactions which helps in the ascertainment of profit/loss and financial positionof the business while maintaining the accuracy of accounts Accounting Cycle The entire accounting cycle is based on the double entry system. Once a transaction occurs, it is recorded in the form of a...
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...Bookkeeping and Accounts (City & Guilds Level 2) Course Content: At the end of the course candidates should be able to to do the following at Level 2: * Ledger Accounting: Post ledger transactions, total and balance accounts, bringing down balances: sales ledger; purchase ledger; general ledger. * Control Accounts: Prepare and reconcile control accounts with individual ledger account balances in subsidiary ledgers for: sales ledger control account; purchase ledger control account. * Correction of errors: Identify different types of errors in ledger accounts: incorrect double entries, missing entries, numerical inconsistencies, incorrect calculations. Make appropriate adjustments in the Journal and the respective ledger accounts. Create and clear a suspense account where necessary. * Accounting for capital expenditure and depreciation: Distinguish between capital and revenue expenditure; Record depreciation using: straight line method, reducing balance method. Prepare accounts for depreciation and provision for depreciation. * Year end adjustments: Write off bad debts; Create and increase/reduce the provision for doubtful debts account; Account for accruals and prepayments in ledger accounts; Make appropriate adjustments in the journal; Prepare a trial balance from cash book and ledger balances; Prepare a revised trial balance from one initially drafted incorrectly. * Extended trial balance: Complete an extended trial balance making adjustments...
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...Over the last 500 years, the double-entry system of accounting has provided the accounting profession with a reliable and accurate way of tracking the economic events of companies. However, with the implementation of computer-based accounting systems over the last few decades, event based accounting has gained popularity. The theory behind event based accounting is that each business transaction can be broken down into one, or a combination of three types of events: economic, business, and information. An economic event is one in which the quantity of resources change, such as selling an item or purchasing a service. Events like receiving an invoice from a supplier, or sending out a purchase order to a vendor are examples of business events. They are necessary to the company even though they are not the monetary or physical transactions for goods or services. Tasks like creating reports and inputting new customers are considered information events. Information events provide the necessary data for the economic or business events that transpire. The double-entry system of accounting focuses on taking those separate events and aggregating them into journal entries. By aggregating them, a great deal of the total information of the event is left out. Under an event based accounting system each event is recorded with as much of the information as possible, and then stored in tables of data that allow the user to recall and compile this information into usable reports. This...
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...Computer Information System Brief Tina Monteverdi Accounting Information Systems ACC/542 July 15, 2013 Milan Havel Computer Information System Brief Kudler Fine Foods prides their selves on providing an upscale environment with all of the very best domestic and imported foods and wines. They have an experienced and knowledgeable staff that is able to assist customers. The founder, Kathy Kudler developed a business plan and obtained a financing and was able to open a store all within a six month time a turn that business into a profitable business in the first year. Over the next five years 2 more stores were opened and continuing to thrive. In order to continue growing Kudler’s is evaluating their accounting information system needs and determine if there are changes that can be made to improve their systems with either system changes or technology upgrades, as well as identify an potential technology threats that may need to be addressed. Identify Kudler’s Key business and Accounting Information Needs Kathy Kudler and her management team understand the benefits of a system that would meet the needs of this business and help to continue to thrive. Kudler’s computer system will be used to integrate their point of sale (POS) systems along with their asset management and accounting, accounts payable modules, general ledger, bank reconciliations, and lastly one of the most important systems the security systems. “The initial business plan for Kudler’s included...
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...HI5019 Strategic Information Systems for Business and Enterpise (T1, 2013) Assignment (20% of Final Mark) The assignment has two parts namely Part A (20 marks) & B (20 marks). Part A will require you to answer four (4) questions. Part B will involve two (2) cases selected form you textbook, Accounting Information Systems 8th edition by James A. Hall. The assignment aims to develop an understanding of Accounting Information Systems structure and their use in the business setting. The task is to answer questions relating to transaction processing, ethics, fraud and internal control. This assignment itself includes several assignments, each of which comprises a part of the students’ task. However, it is well encouraged to include any additional information that students may think will be useful in completing the task. General Rules and Requirements: Reports must be confined to 3,000 words (+/- 5%). As a minimum, a title page, table of contents page (based on your report headings), introduction, conclusion and references should be included. Font type should be Arial (size 11), paragraph spacing should be 1.5. Note: Any additional material from external sources that you “copy and paste” into your report is NOT included in the word limit. Also, ensure it is appropriately referenced. PART A (20 marks) 1. How does SOX affect the provision of attest and advisory services? (5 marks) 2. Compare and contrast the relative advantages and disadvantages of sequential, block,...
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...Accounting System Rosemarie Blakley BSA/310 April 28, 2013 Anastasia Jakubow Accounting System Although Kudler Fine Foods currently has an accounting system that they are using that seems to be adequate, the goal in the future is for the organization to continue to grow, and along with this growth is going to come the need for a more comprehensive system that can support their growing changes. We all know that proper accounting practices are one of the most important things in any business, and Kudler is no exception. After careful review of different accounting software that is out there on the market today, I personally think that QuickBooks by Intuit would be a logical solution to their growing needs. Key Features: The key features for this new accounting system should include all of the things that are necessary for the growth of a smaller enterprise. The software should be able to keep track of all of the company’s financial transactions. It should be a financial accounting and reporting system all in one. The software should also have the capability to record all of their transactions as well as report all of the operating data at the end of each quarter or month, whichever the organization prefers, and it also needs to help analyze all of their financial data. QuickBooks accounting software does well to allow for journal entries by debiting and crediting the financial accounts, such as liabilities, assets, revenues, and expenses. Kudler can even use this software...
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...INTERNSHIP REPORT ON ACCOUNTING INFORMATIONSYSTEM OF REAL ESTATE BUSINESS IN BANGLADESH”-AN EMPIRICAL STUDY OF [pic] PREPARED FOR Farzana Afrin Internship Supervisor & Lecturer Dept. of Business Studies Stamford University Bangladesh. PREPARED BY Mahmood Hossain Id: 02707400 Section: 27(Q) Date: LATTER OF TRANSMITTAL April Ms Farzana Afrin Lecturer Stamford University Dhanmondi, Dhaka Dear Madam, I feel myself fortunate enough for having the scope to conclude the study on “The Accounting information System of Real Estate Business in Bangladesh”-An Empirical study of Building For Future Ltd, Which you assigned me to do as a part of the study. Obviously, this type of practical work made me acquainted with “Real Estate Finance” in real life situation. Here, I can’t deny the help that I got from the staff of Building For Future Ltd. who ensured me a full congenial atmosphere to access over a plenty of information with relevant papers and a practical survey. I am thankful to them for showing their highest degree of tolerance in answering my inexorable questions, sometimes repeated. I would enthusiastically provide you related information depending on your queries. The report was prepared under your able leadership and I do respectfully appreciate guidance to me to learn about...
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...in violation of the honesty code. Choose the BEST answer on the multiple choice questions. The discussion questions can be written by hand or typed. ACC/BUS 333.01 Semester Test 1 Name:___________________________________ Multiple Choice Questions: Please circle the best response. (1.5 points each) Which of the following is not an example of a source document?Receiving reportPurchase orderSales orderAging reportJob costing systems are most appropriate for:a)Home builders b)Textbook publishers c)Beverage companies d)both a and b are appropriate industries for job costing systems An important input to the sales process is: A customer sales order The cash forecast Aged accounts receivable information A receiving report It is generally true of not-for-profit organizations that they: Are profit-oriented despite their name Are always evaluated using profit measuresAre not governed by accounting standardsEmphasize funds rather than income in their internal accounting systems 5. According to the text, all of the following are objectives of the human resource management process except: a) Hiring, training, and employing workers b)Counseling employees on retirement and medical benefits c)Maintaining employee earnings records d)Reporting on payroll deductions 6. Which of the following outputs (reports) are common to both the sales process and the purchasing...
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...Computer Information Systems Brief: Kudler Fine Foods Crystal Levine February 3, 2014 ACC/542 Facilitator Yasin Dadabhoy Introduction Kudler Fine Foods is an upscale specialty food store that provides the very best domestic and imported foods from all around the world. They have a wide variety of specialty baked goods, fresh produce, and fresh meat and seafood. Kudler Fine Foods currently has three locations in the San Diego metropolitan area, and prides themselves on pleasing their customers and providing them with a delightful shopping outing. Kudler’s Key Business and Accounting Needs Kudler Fine Foods has some important business and accounting needs in order to allow for their businesses to run smoothly. Their needs include things such as inventory control, accurate recording of accounting transactions, and efficient tracking of customer accounts. Currently Kudler Fine Foods uses a Retail Enterprise Management System (REMS) for their current accounting information system. This is currently being maintained by Smith Systems Consulting. Currently Kudler’s REMS provides them with many important financial modules. The general ledger module provides them with functions such as the ability to run financial reports, and transaction details and roll-ups. The accounts payable module allows them to do things such as print checks and also allows the purchase order module to post vendor orders directly to the AP module. What they do need in this module is the system’s ability...
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...Polytechnic University of the Philippines Sta. Mesa, Manila College of Accountancy and Finance CHAPTER 1: ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT Submitted By: Angeles, Jireh Nesamiel L. Carullo, Shery Lyn A. Gutierrez, Joe Mar C. Monforte, Roselyn G. Reyes, Edward Angelo A. BSA 3-9 Submittes To: Prof. Leandro Cruz Fua WHAT’S NEW IN ACCOUNTING INFORMATION SYSTEMS? Cloud Computing—Impact for Accountants According to Ron Gill, cloud computing is a way of using business applications over the Internet—such as the way you use the Internet for your bank transactions. Think of cloud computing as a way to increase IT capacity or add capabilities without investing in new infrastructure, training new people, or licensing new software. Mostly, we’re talking about a subscription-based or pay-per-use service that makes IT’s existing capabilities scalable whenever the need exists. Estimates suggest that the fast-growing cloud computing industry will reach $42 billion by 2012. Cloud computing resources may be categorized as data storage, infrastructure and platform, or application software (i.e., business applications such as purchases, HR, sales, etc.). If a firm would like to take advantage of cloud computing, it would most likely need to subscribe to all three of these categories from the service provider. For example, business applications depend on company data that is stored in the database, and data storage depends on the appropriate infrastructure...
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...Chapter 1: Introduction to Accounting Information Systems Business Processes and Accounting Information Systems • Business Process: sequence of activities performed by a business for acquiring, producing, and selling goods and services o Used by accountants and others • Transaction Cycles: group related events that typically occur in a particular sequence o Acquisition (purchasing) cycle = purchasing and paying for goods or services o Conversion cycle = transforming resources acquired into goods and services o Revenue cycle = providing goods or services to customers and collecting cash • Management Information System (MIS): system that captures data about an organization, stores and maintains the data, and provides meaningful info for management • Accounting Information System (AIS) is a subset of an MIS • Data captured by the MIS are aggregated, summarized, and organized to produce information that helps an organization monitor and control business processes Scope of an Accounting Information System • AIS provides accounting and financial information, and other information obtained in the routine processing of accounting transactions • It tracks info about sales order, sales in units and dollars, cash collections, etc. • Enterprise Resource Planning System (ERP): business management system that integrates all aspects of a firm’s business process Uses of AIS • Producing External Reports ...
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...LP1 Assignment: Accounting System Structure End of Chapter - Question #1 A.) An accounting information system is a computer-based method for tracking accounting activity storage by collecting the data, processing it, and reporting the information back to use internally and externally within a company. B.) The FASB conceptual framework is a guide for the accounting principles that I follow on a daily basis in every class I am taking. The FASB works as more of a building block for the AIS. The constraints, principles, assumptions, qualitative characteristics, elements of financial statements, and objective to financial reporting is what builds the AIS. Every business works with an AIS, you just may not see it. Any place you go to has a working AIS that functions from the FASB conceptual framework. With that said, the financial reporting is then consistent. This gives way for faithful representation in an organization. C.) Inputs - revenues, receipts, checks, payroll, etc.. Processes - how the AIS is going to be processes the inputs into vital information. Outputs - financial statements for internal and external reporting purposes. Storage - whether it is paper form, electronically, or both, it is easily able to be pulled up for analysis if a problem should arise. Also, it includes information for inventory, customers, and vendors. Lastly, Internal Controls - having daily backups of data and making sure there is separation of duties. One person working with processes the...
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...on the EarthWear and Willis & Adams, CPAs websites, it contains specific content related to the 2014 audit. This information is applicable to all EarthWear Mini-cases. Background of EarthWear EarthWear Clothiers was founded in Boise, Idaho, by James Williams and Calvin Rogers in 1973 to make high-quality clothing for outdoor sports, such as hiking, skiing, fly-fishing, and whitewater kayaking. Over the years, the company's product lines have grown to include casual clothing, accessories, shoes, and soft luggage. EarthWear offers its products through three retailing options: catalogs, retail outlets, and its website. When EarthWear founders, Williams and Rogers, decided to incorporate their company in 1975, they searched for an accounting firm to conduct the company’s approaching year-end audit. They were referred to a bright, young auditor that had recently started his own CPA firm, Michael Willis. Williams and Rogers were immediately impressed with Mr. Willis, and agreed to have Willis and Company complete EarthWear’s upcoming audit. Ever since, EarthWear and Willis and Adams have had a strong relationship. EarthWear decided to go public in 1986. Although Willis and Adams audited very few other public companies at that time, EarthWear retained Willis and Adams as the company’s auditor. Outdoor Clothing Industry Over the past several years, the outdoor clothing industry has been growing at a steady, moderate pace. The industry consists of a wide variety of manufacturers...
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...Information Technology and Accounting Fraud History has shown the accounting network has come a long way from the days which included manual general ledgers to the present where electronic general ledgers are a necessity. In the electronic world we now live in, the accounting information system requires us to utilize computer systems and intranets, which transfer vital information at a much more rapid speed. Information systems used for accounting purposes is a function used by businesses internally. These highly sophisticated systems report financial data for users from entry-level staff, key decision makers, stakeholders, and investors. These systems provide owners of all businesses and management the supporting data required for making critical decisions, although these systems may encounter threats which can obstruct their overall effectiveness. Account information systems can become so complex for businesses they prove to be ineffective and inefficient for the everyday use in business operations. These high complexities may take place when business owners or management make efforts to construct an information system which gathers far more information that is needed, or use the system for reasons outside the scope of their original purpose. Businesses who lack the adequate technology or employees familiar with accounting systems may find this technology difficult to use. Management must ensure the accounting systems implemented within their...
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...Kudler Fine Foods Automation Process of Accounting Information System ACC/542 Accounting Information Systems March 27, 2012 Kudler Fine Foods Accounting Information Systems Kudler Fine Foods (Kudler) is an upscale specialty food store chain in the San Diego, CA area. It was established in 1998 by its current owner Kathy Kudler, and since has expanded to three locations, all focused on providing the best quality bakery products, fresh produce and meats, condiments, packaged foods, cheese, specialty dairy products and fine wine (Apollo Group, Inc., 2011). Kudler currently uses a retail management system that includes a point of sale (POS) module for cash sales, QuickBooks software for payroll functions, Microsoft Access as a customer database, an Excel spreadsheet as an inventory tracker, and several other specific-area modules required to operate the system. Although the current software addresses most of Kudler's accounting information system (ACI) needs, team A recommends installing a new system that would centralize major accounting functions and automate some processes the company currently performs manually (Apollo Group, Inc., 2011). When choosing new accounting software, most companies have several options. These include custom solutions, Enterprise Resource Planning (ERP) software, and industry specific AIS. Team A recommends Kudler purchases an industry specific solution for several reasons. There are numerous businesses, for...
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