Monday, December 30, 2019

Critical Evaluation of Accounting Cycle - 3883 Words

INTRODUCTION: An Organization often needs a way to keep score when conducting business operations. Accounting usually fits this need because it allows create to companies financial reports that can be compared with other companies or an industry standard. Business owners and managers also use accounting to review the efficiency of operations. This information may help owners and managers make business decisions and improve the company’s profitability. Accounting is basically defined as the process of identifying, measuring and communicating economic information to help its users make informed judgment and decisions. It also involves recording, classifying, summarizing and interpreting financial transactions and events about economic†¦show more content†¦Financial statements are the most important reports of a business. These statements are prepared from the information in the trial balance. The purpose of these statements is to show the reader the financial position, financial performance and cash flows of a business, as well as other useful information concerning the business. Financial statements are usually prepared once a year. Financial statements consist of (amongst other things) an income statement, statement of changes in the owner’s equity, balance sheet, cash flow statement and (where needed) an auditor’s report. Thus we can say ACCOUNTING CYCLE indicates the technique of preparing financial statement for the consumption of different stockholders within a given guideline. Accounting Cycle is a Technique: The accounting cycle begins when business transactions are entered into the journal. Transactions include all events that impact any of the company s accounts, such as cash on hand, or accounts receivable, or bank loans payable. Journal entries accumulate in chronological order —the order in which they occur. The second step in the accounting cycle is transferring (posting) journal entries into a ledger or ledgers, where they are organized first by account, and then chronologically within accounts. Journal: On 1 September, two customers place product orders, on credit. Customer 1 orders $4,200 in products, Customer 2 orders $5,800 in products. Later the same day, the companyShow MoreRelatedRiordan Manufacturing Essay1601 Words   |  7 PagesHang Zhou, China. Currently, Riordans COO, Hugh McCauley, and the executive team have requested changes to the current information system used to maintain inventory and manufacturing processes. Evaluation of current Sales, Inventory, and Manufacturing processes will be required as well as the evaluation of current hardware and software. The present networking system requires improvements and, thanks to todays technology can easily be upgraded. The outdated information system and methods couldRead MoreRiordan Manufacturing Executive Summary1607 Words   |  7 PagesHang Zhou, China. Currently, Riordans COO, Hugh McCauley, and the executive team have requested changes to the current information system used to maintain inventory and manufacturing processes. Evaluation of current Sales, Inventory, and Manufacturing processes will be required as well as the evaluation of current hardware and software. The present networking system requires improvements and, thanks to todays technology can easily be upgraded. The outdated information system and methods couldRead MoreDifferent Functions of External Quality Assurance899 Words   |  4 Pageslearning and development, the functions of external quality assurance bodies play a critical role in the development of learning and development programs at organisations within their sphere of influence. 1.2. There are several key concepts associated with the function of assessment, most of which are essential to the provision of quality, reliable external assessment. Planning and sampling strategies are critical because for external quality assurance to be reliable, it needs to be well-designedRead MoreQuestions On Purchasing System And Purchasing Systems Essay1439 Words   |  6 Pages Name: Rovan Sameh Fathy ID: 2141161 Major: Accounting Group: A PURCHASING SYSTEM Purchasing system is a method used by businesses to buy products and/or services. ï‚â€" A purchasing system manages the entire acquisition process, from requisition, to purchase order, to product receipt, to payment. ï‚â€" Purchasing systems are a key component of effective inventory management in that they monitor existing stock and help companies determine what to buy, how much to buy and when to buy itRead MoreAccounting753 Words   |  4 PagesCampbellsville University School of Business and Economics SYLLABUS Course Title: ACC 601 Managerial Accounting Semester/Dates: Graduate Term 1: August 29, 2011 – October 23, 2011 (Traditional MBA) Meetings: Thursday (6:00 PM – 10:00 PM), AD 25 Faculty: Dr. Sunny Onyiri Office: AD 29-b Phone: (502) 365 4424 Read MoreOrganization s Internal Control Integrated Framework1335 Words   |  6 Pagesmaterial misstatements in the financial statements. Four factors that can result in increased financial reporting are personnel changes, the organization grows rapidly, corporate restructurings, and the changing of or adopting new accounting principles. The accounting information system has five major objectives. The first one is to identify and record transactions that are valid. The second one is to describe the transactions with sufficient detail to permit proper classification of transactionsRead MoreThe Effects Of Malnutrition On Indi The Facts Essay1419 Words   |  6 PagesCritical Review Child malnutrition in India – The Facts Malnutrition in India is a silent emergency (Leadership Agenda for Action, 2009) India speaks the language of growth and progress. Malnutrition however, continues to haunt the country. India is home to 40 percent of malnourished children in the world. Every year 2.5 million children die in India, accounting for one in five deaths in the world. More than half of these deaths could be prevented if children were well nourished . MalnutritionRead MoreHuman Activity And Its Impact On Business Operations971 Words   |  4 Pagesâ€Å"Accounting is said to be as old as any organized human activity. Dating back to Babylon and Humaraby’s book of law, over Greece and Rome and further on through history, there has always been a need to record events referring to purchase and sale, payment and collection. Such recording originally generated bookkeeping, which at the level of development of production forces was primarily in function of trade and banking. Its further development was according to changes in organization of businessRead MoreFinancial Performance And Management : Assessing The Value Of Investment1164 Words   |  5 Pagesinvestment. For this project, an investment analysis of Anthony’s Orchard will be conducted, focusing on four main approaches to evaluate the value of their investment, which involves the purchase of an apple-pressing machine. The four methods used are Accounting Rate o f Return, Payback Period, Net Present Value, and the Internal Rate of Return. The proposed investment will cost the organization $950,000. The machine is very expensive to begin with. Arguably, the market research indicates that the machineRead MoreResponsibility Accounting and Transfer Pricing1021 Words   |  5 PagesManagerial Accounting and Controls Reporting Responsibility Accounting and Transfer Pricing in Decentralized Operations 1. When are decentralized operations appropriate? 2. How does responsibility accounting relate to decentralization? 3. What are the differences among the four types of responsibility centers? 4. What is suboptimization and what are its effects? 5. How and why are transfer prices for products used in organizations? 6. What are the differences among the various definitions

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.