...critical and complex nature of today's business applications has made it very important for IT organizations to monitor and manage application service levels at high standards of availability. Problems faced in an enterprise include service failures and performance degradation. Since these services form an important type of business delivery, monitoring these services and quickly correcting problems before they can impact business operations is crucial in any enterprise. Service-level agreements are used to evaluate service availability, performance, and usage. By constantly monitoring the service levels, IT organizations can identify problems and their potential impact, diagnose root causes of service failure, and fix these in compliance with the service-level agreements. Enterprise Manager provides a comprehensive monitoring solution that helps you to effectively manage services from the overview level to the individual component level. When a service fails or performs poorly, Grid Control provides diagnostics tools that help to resolve problems quickly and efficiently, significantly reducing administrative costs spent on problem identification and resolution. Finally, customized reports offer a valuable mechanism to analyze the behavior of the applications over time. Grid Control monitors not only individual components in the IT infrastructure, but also the applications hosted by those components, allowing you to model and monitor business functions using a top-down approach...
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...STEPS IN ANALYZING TRANSACTION Read the transaction to understand what is happening and how it affects the business. Example, the business has more Revenue, or has more Expenses, or has more Cash, or Owes less to Creditors. Identify the accounts involved, and decide whether the accounts are increased or decrease. Look for Cash first; you will quickly recognize if Cash is coming in or going out. Decide on the Classifications of the accounts involved. (for Example, Equipment is something the business owes, and it's a liability; Rent is an Expense. After recording the transaction, make sure the accounting equation is in balance. THE FIVE CLASSIFICATIONS: Accounts Category Normal Balance Increase Decrease 1. ASSETS DEBIT DEBIT CREDIT 2. LIABILITIES CREDIT CREDIT DEBIT 3. OWNER'S EQUITY CAPITAL CREDIT CREDIT DEBIT WITHDRAWALS DEBIT DEBIT CREDIT 4. REVENUE CREDIT CREDIT DEBIT 5. EXPENSES DEBIT DEBIT CREDIT STEPS IN THE ACCOUNTING PROCESS 1. Record the transactions of a business in a JOURNAL book of original entry - the day - by day record of the trasactions of a firm). Entry should be based on some source document or evidence that a transaction has occurred, such as an invoice, a receipt, or a check. 2. Post entries to the accounts in the LEDGER. Transfer the amounts from the JOURNAL to the Debit or Credit column of the specified accounts in the LEDGER. Use a cross reference system. Accounts are placed in the LEDGER according...
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...Author(s): Renjith Kumar. P Company: PRICOL Technologies Created on: 21 January 2007 Author Bio P. Renjith Kumar is SAP BI Consultant with PRICOL Technologies. He has extensive cross-functional experience and has been with end-to-end SAP implementations as ABAP Consultant. SAP DEVELOPER NETWORK | sdn.sap.com © 2007 SAP AG BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 1 BDC Step-by-Step Table of Contents Overview: How It Works .................................................................................................................. 2 Steps in data transfer....................................................................................................................... 2 Data Transfer Methods .................................................................................................................... 3 Step-by-Step Process...................................................................................................................... 3 Task 1: Recording............................................................................................................................ 3 Task 2: Creating ABAP Report based on recording done............................................................... 6 Task 3: Writing ABAP report to do data transfer ........................................................................... 10 Testing ..........................................................................................................................
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...Unit 5 – business accounting Jane walker Jessica Ordish Assignment 1 – C & V fashions. 1) What is the purpose of accounting and will the purpose vary in different types of organisation? The purpose of accounting can vary in different types of organisations such as recording transactions, monitoring activity, control and management of a business. Recording transactions involves the recording of finical transactions, weather the recording is a prediction or actual records this will help the owner or manager of the organisation see what money is coming in and out of the business and will help them plan for future, it also helps allows the business owner to see if the business is a success or failing if failing the owner can make changes to make the business more success and earn more money. Recording transactions also helps the business if they are paying bills or owed money they can recognise bills or payments to them haven’t been paid and they can chase them up. If payments are not paid the business can get into trouble with the HMRC (Human Management Revenue and Customs) Monitoring accounting within an organisation will be updated on a regular basis, doing this will provide a clear indication of how the business is doing on terms of sales, receiving payments and paying out payments. Monitoring activity should involve keeping an eye on the bank balance to ensure there are sufficient funds to meet day to day expenses. The owner of the organisations would notice if the...
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...ACC 557 WK 2 Chapter 1 Quiz - All Possible Questions TRUE-FALSE STATEMENTS 1. Owners of business firms are the only people who need accounting information. 2. Transactions that can be measured in dollars and cents are recorded in the financial information system. 3. The hiring of a new company president is an economic event recorded by the financial information system. 4. Management of a business enterprise is the major external user of information. 5. Accounting communicates financial information about a business enterprise to both internal and external users. 6. Accounting information is used only by external users with a financial interest in a business enterprise. 7. Financial statements are the major means of communicating accounting information to interested parties. 8. Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process. 9. The origins of accounting are attributed to Luca Pacioli, a famous mathematician. 10. The study of accounting will be useful only if a student is interested in working for a profit-oriented business firm. 11. Private accountants are accountants who are not employees of business enterprises. 12. The study of accounting is not useful for a business career unless your career objective is to become an accountant. 13. A working knowledge...
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...What is Accounting? Accounting is the language of business Nature of Financial Accounting The Nature of Accounting is the identification, measurement and communication of financial information about economic entities to interested persons Objectives / functions of Financial Accounting One of the main functions of financial accounting is the preparation of final accounts, also commonly referred to as financial statements. Pillars of Accounting Assets Liabilities Capital Revenues Expenses ASSETS Fixed Assets | Current Assets | * Tangible Assets Have physical existence * Land * Building * Parking Area * Plant & Machines * Equipments * Motor Vehicle * Intangible Assets Have no physical existence * Patents * Copyrights * Goodwill * Etc. | * Cash and Bank * Accounts Receivables * Inventory of goods * Office Supplies * Office Furniture * Prepaid expenses * Advances | Patents A manufacturing and research company control over the use and sale of a specific design in manufacturing process etc. Copyrights A business sole authority to reproduce and sale a software, book, magazine, journal, etc. Goodwill It represents the excess of cost paid by the purchasing business to the purchased business over the fair value of purchased business identifiable assets. LIABILITIES Long Term Liabilities | Current Liabilities | Long-term liabilities...
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...Chapter 2 – The Recording Process Questions – 1-21, Pages 78-79 1. Describe the parts of a T account. T account consists of three parts: (1) a title, (2) a left or debit side, and (3) a right or credit side. Because the format of an account resembles the letter T, we refer to it as a T account. 2. “The terms debit and credit mean increase and decrease, respectively.” Do you agree? Explain. I do not agree. We use the terms debit and credit repeatedly in the recording. Debit simply means that the amount is entered on the left side of the account, while the word Credit means that the amount is entered on the right hand. Depending on the transaction, debit or credit will be increased or in some cases it will be decreased. We cannot conclude that Debit implies the increasing value and Credit implies the decreasing value. 3. Heath Precourt, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Heath correct? Explain. He is Incorrect. Under the double-entry system, the two-sided effect of each transaction is recorded in appropriate accounts. According to the basic accounting equation, each transaction must affect two or more accounts to keep the basic accounting equation in balance. In in other words, for each transaction, debits must equal credits. The equality of debits and credits provides the basis for the double-entry system of recording transactions. 4. Erica Mendez, a beginning accounting student, believes debit...
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... d. Analyze Transactions e. Journalize the Transactions f. Post to Ledger Accounts g. Prepare a Unadjusted Trial Balance h. Journalize and Post Adjusting Entries i. Prepare an Adjusted Trial Balance j. Prepare Financial Statement k. Journalize and Post Closing Entries l. Post-Closing Trial Balance m. Optional Reversing Entries IV. Conclusion While not having an accounting cycle for the business can possibility hurt the company, following the accounting process and steps will help with the accounting procedure. Many organizations will have accounting established to process all the business revenues and expenses. To have a successful business people follow the accounting actions of identify, record and communicate the daily transactions of the company. After the actions are completed then the company will go through the process of the accounting cycle. There is a ten step accounting cycle that business owners can go threw to show the revenues and expenses. Collect data, analyze the transactions, record transaction to journal, post from journal to ledger, prepare unadjusted trial balance, record adjusting entries to ledger, prepare adjusted trial balance, prepare financial statement, close temporary accounts, and lastly post-closing trial balance. Accounting in Action Accounting is a system that businesses use for all of the revenue transactions and for all of the expenses made in the business. Accounting process...
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...Answer | Which of the following transactions is not possible | Increase both liabilities and Equity for the same account | A transaction that increases Liabilities and Equity at the same time. | Is not possible | Identifying Transactions, Recording transactions, and communication transactions should be performed in what order? | Identifying, recording, and communicating | The proper order for these transactions are Identifying, recording, and communication | True | Who is an external user of accounting information | Company Customers | Internal users of accounting information are | Sales staff, officers and directors, budget officers | Managers and internal users of accounting information | Service | Managers and internal users of accounting information | Research and development | Managers and internal users of accounting information | Production | Managers and internal users of accounting | Human resource | This person is a manager but is not an internal user of accounting information | Partner in a CPA firm charged with conduction the company's external audit. | The Cost principle | accounting information based on actual cost | The cost principle | Does not take into consideration the actual value of the asset, it only records the actual cost paid for the asset | The going-concept principle | something that remains in operation in the foreseeable future | The business entity principle | requires that a business to be accounted for separately from...
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...Notes FIA Paper FA1 Recording Financial Transactions theexpgroup.com ExPress Notes FIA FA1 Recording Financial Transactions Contents About ExPress Notes 1. Business transactions and documentation 7 2. Financial statements and their elements 12 3. Double entry bookkeeping: the debits and credits 18 4. Cash and bank 21 5. Sales and credit transactions 24 6. Purchases and credit transactions 29 7. Payroll 32 8. Page | 2 3 Control accounts and initial trial balance 34 © 2011 The ExP Group. Individuals may reproduce this material if it is for their own private study use only. Reproduction by any means for any other purpose is prohibited. These course materials are for educational purposes only and so are necessarily simplified and summarised. Always obtain expert advice on any specific issue. Refer to our full terms and conditions of use. No liability for damage arising from use of these notes will be accepted by the ExP Group. ExPress Notes FIA FA1 Recording Financial Transactions START About ExPress Notes We are very pleased that you have downloaded a copy of our ExPress notes for this paper. We expect that you are keen to get on with the job in hand, so we will keep the introduction brief. First, we would like to draw your attention to the terms and conditions of usage. It’s a condition of printing these notes that you agree to the terms and conditions of usage. These...
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...MEANING OF ACCOUNTING: Accounting is famously known as the "language of business". Through the financial statements, the end-product reports in accounting, it delivers information to different users. Accounting is a means through which information about a business entity is communicated. Accounting Definition: Technical definitions of accounting have been published by different accounting bodies. The American Institute of Certified Public Accountants (AICPA) defines accounting as: "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof." To further understand what accounting is, we must take a look at the different definitions. Accounting as a Science: Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information. Accounting as an Art: Accounting is the art of recording (journalizing), classifying (posting to the ledger), summarizing in a significant manner and in terms of money, transactions and events which are, in part, at least of a financial character, and interpreting the results thereof to interested users. Accounting as an Information System: Accounting is a service activity, which functions to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful...
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...Accounting is the process of identifying the transactions and events, measuring the transactions and events in terms of money, recording them in a systematic manner in the books of accounts, classifying or grouping them and finally summarizing the transactions in a manner useful to the users of accounting information . Let’s now discuss these accounting processes one by one: 1. Identifying the transactions and events: This is the first step of accounting process. It identifies the transactions of financial character that is required to be recorded In the books of accounts. Transactions is transfer of money or goods or services from one person or account to another person or account. 2. Measuring: This denotes expressing the values of business transactions and events in terms of money 3. Recording: It deals with recording of identifiable and measurable transaction and events in a systematic manner in the books of original entry that are in accordance with principles of accountancy. 4. Classifying: It deals with periodic grouping of transactions of similar nature that appear in the books of original entry into appropriate heads by posting or transfer entries 5. Summarizing: It deals with summarizing or condensing transactions in a manner useful to the users. This function involves the preparation of financial statements such as income statement, balance sheet, statement of changes in financial position and cash flow statement 6. Analyzing: It deals with the...
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...OBJECTIVES 1. Analyze the effect of business transactions on the basic accounting equation. Each business transaction must have a dual effect on the accounting equation. For example, if an individual asset is increased, there must be a corresponding (a) decrease in another asset, or (b) increase in a specific liability, or (c) increase in stockholders’ equity. 2. Explain what an account is and how it helps in the recording process. An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders’ equity items. 3. Define debits and credits and explain how they are used to record business transactions. The terms debit and credit are synonymous with left and right. Assets, dividends, and expenses are increased by debits and decreased by credits. Liabilities, common stock, retained earnings, and revenues are increased by credits and decreased by debits. 4. Identify the basic steps in the recording process. The basic steps in the recording process are: (a) analyze each transaction in terms of its effect on the accounts, (b) enter the transaction information in a journal, (c) transfer the journal information to the appropriate accounts in the ledger. 5. Explain what a journal is and how it helps in the recording process. The initial accounting record of a transaction is entered in a journal before the data are entered in the accounts. A journal (a) discloses in one place the complete effect of a transaction, (b) provides a chronological...
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...University Accounting records provide detail information of all transactions and events occurred in a business enterprise during the accounting year. To maintain accounting records, accounting cycle has a vital role. In this project we are going to discuss about the accounting cycle, its role in maintaining records, steps in accounting cycle, effects of omitting steps in accounting cycle on business progress, important financial statements and their importance. The accounting cycle consists of the following steps: Opening accounts in the ledger with the opening balance; identifying and recording transactions events occurred during the accounting year;...
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...economic reality, include: recording revenue too soon; recording bogus revenue; boosting income using one-time or unsustainable activities; shifting current expenses to a later period; employing other techniques to hide expenses or losses; shifting current income to a later period and shifting future expenses to an earlier period. Recording Revenue Too Soon In order to shift revenue or gains in future-period to current period or to oversize bonuses and stock options, management may shift revenues or gains from future period to current period through recording revenue before completing any obligations under the contract; recording revenue far in excess of work completed on the contract; recording revenue before the buyer’s final acceptance of the product or recording revenue when the buyer’s payment remains uncertain or unnecessary. To mitigate the risk of such misrepresentation, investors should ware some warning signs of shenanigans: extended end date, sharp jump in accounts receivable, especially long-term and unbilled ones, using percentage-of-completion accounting or aggressive assumptions, inappropriately low discount rate, premature revenue recognition policy, Inappropriate use of mark-to-market or bill-and-hold accounting, consignment arrangements, incorrect shipping or liberalizing customer collection terms. Recording Bogus Revenue To accelerate its revenue, companies may create fake revenue through recording revenue from transactions that lack economic substance...
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