...Question 1 Carelessness - Carelessness is the common reasons by which accounting errors may be occur. The person who keeping the books of account must be responsible to his/her job when he/she is careless or not serious may cause such errors happen. Lack of Knowledge - Accounting is based on certain principles and rules. Due to the lack of knowledge of the accounting principles and rules, accounting errors may be occurs. Dishonest of records - If the person who is responsible for keeping books of account is dishonest, he/she may intentionally commit errors in the books of account for the purpose of taking undue advantage. Computer and Software Errors - A professional firm keeps its account records in computer. However, defective computer program and easy access to unauthorized person to the accounting program may also result in the accounting errors. Most of the firm did not update their accounting software may cause many errors in their accounting program. Question 2 Lack of Knowledge - For accountant who is lack of knowledge must take part-time course to update their knowledge which helps in accounting. Besides that, the firm also must providing more training and practice for accountants to update their knowledge and experience to improve their efficiency in his/her job. Carelessness - For person who is newly involved in accounting firm, advice he/she must double check their account works to avoid careless in account records. Senior accountants should...
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...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 for end of year: accruals; prepayments; bad debts; doubtful debts; depreciation; closing stock. Entry requirements: Book-keeping and Accounts level 1 or a good knowledge of basic double entry book-keeping and other financial processes. Teaching & Assessment: There is one examination paper lasting 2 hours plus 10 minutes reading time. The examination consists...
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...employed by individual companies to audit for management. Experience in internal auditing often leads to CPA or CIA certification. One problem with internal auditors is lack of independence. Although they report directly to the president, or other ranking authority, they cannot be entirely independent due to the employer-employee relationship. As a result, external auditors are sometimes hesitant to rely on internal audit reports due to this lack of independence. Why is it important to understand the difference between an originating temporary difference and permanent difference in a company? Explain if this concept is relevant for personal finance. An originating temporary difference is the initial difference between the book basis and the tax basis of an asset or...
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...(Classifying) Final Account (Summarizing) Now Explain Steps:1 Recording:- This is the basic function of accounting. All business transaction, as evidenced by some documents such as Sale bill, Pass book, Salary Slip ect are recorded in the books of account. This is called recording process. 2. Classifying:- All entries in the Journal or books of Original Entry should be posted to the appropriate ledger accounts to find out at a glance the total effect of all such transactions in a particular account. 3. Summarizing:- It is concerned with the preparation and presentation of the classified data in a manner useful to the Internal a well as the external users of financial statements. This process leads to the preparation of the following financial statements:a) Trial Balance b) Profit & Loss Account c) Balance Sheet d) Cash flow Statement. DIFF. BETWEEN BOOK KEEPING AND ACCOUNTING BOOK KEEPING ACCOUNTING 1. It is a Process concerned with recording of transaction. 2. It is the basic of accounting. 1. It is a process concerned with Summarizing of the recorded transaction. 2. It is the basic for business language. for accounting are 3. Person responsible for book-keeping are called book keeper. 4. It does not required any special skill or Knowledge. 5. Personal judgment of the book-keeper is not required. 6. Financial statement are not prepared from 3. Personal responsible called accountant. 4. It required special Skill & knowledge. 5. Personal Judgment of the accountant...
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...INTRODUCTION Accountants measure a business entity's income, expenses and changes resources. Back in the day, prior to the widespread use of spread sheet and computer applications, Accountants used journals and ledgers in which they recorded business transactions. Hence the term keeping the books. As computer applications became main stream, this keeping of the books Accountants do, has gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born ADVANTAGES * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement of account; * With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system; * More timely information can be produced; * No more manual processing of the data- all automatically been posted to the various ledgers/accounts and * Many types of useful reports can be generated for management to make decisions 12.3 NEED AND REQUIREMENTS OF COMPUTERSIED ACCOUNTING The need for computerised accounting arises from advantages of speed, accuracy and lower cost of handling the business transactions. l Numerous Transactions The computerised accounting system is capable of handling...
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...Millions of people all over the world pay taxes each year. These taxes could include amounts collected by the government or similar organization on behalf of the federal government, state government, local governments and even other taxing authorities. In 2009 alone, the Internal Revenue Service received $1.9 trillion dollars in revenue, and completed over 236 million returns. “The tax system in the United States depends on voluntary compliance, which means that each citizen is responsible for filing a tax return when required and for determining and paying the correct amount of tax” (Albrecht, 567). While most people are honest and report their correct income and pay their tax obligations, some people intentionally distort their amount of income to underpay their taxes, or pay no tax at all. Intentionally underpaying your taxes is considered to be tax fraud and is a crime punishable by fines and/or imprisonment. Fraud is defined as “deception deliberately practiced in order to secure unfair or unlawful gain” (spamlaws.com). As it relates to taxes, fraud constitutes intentionally underreporting income that is legally due, or even intentionally overstating tax deductions and exemptions that you are not entitled to. The first version of Income Tax was introduced in Britain and known as a temporary tax used to help fund the Napoleonic Wars. As with most things, as soon as something new comes out, you have dishonest people already trying to hack, evade, manipulate, etc. for their...
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...What is the accounting problem that the Linbarger Company Faces? Keeping the cash receipt book open to overstate the cash balance is fraud and unethical actions. The company has a cash management problem. They don’t have enough liquid cash to fulfill the promise that they made in their loan contracts. What are the ethical considerations in this case? Provide rationale for why these are ethical considerations. The ethical considerations in this case are that they are not being honest and professional about the situation. Keeping the book open and not being honest about the situation of overstating the cash balance is unethical. It is a case of fraud also deceitful. Lisa’s behavior as a financial vice president should not be tolerated...
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...LESSON 14: CASH BOOK, PASS BOOK, BANK RECONCILIATION STATEMENT Dr. Jyotsna Sethi, Rekha Rani STRUCTURE 14.1 Introduction 14.2 Objectives 14.3 Cash Book 14.4 Types of Cash Book 14.4.1 Simple Cash Book 14.4.2 Two Column Cash Book 14.4.3 Three Column Cash Book 14.5 Petty Cash Book. 14.5.1. Imprest System of Petty Cash Book. 14.5.2 Advantages of Petty Cash Book 14.6 Pass Book 14.7. Bank Reconciliation Statement 14.7.1 Meaning 14.7.2. Causes for difference between Cash Book Balance and Pass Book Balance. 14.7.3. Need and importance of Bank Reconciliation Statement 14.7.4 Procedure for preparation of Bank Reconciliation Statement. 14.8. 14.9. Summary Glossary 14.10. Self Assessment Questions 14.11. Answer to check your progress 14.12. Further Readings 14.1. INTRODUCTION Every entrepreneur should have knowledge of cash book and pass book as from these books, he may check how much balance is available to him for meeting his expenses and liabilities and what are the details of receipts and payments of a particular period. With the details of payments it can be checked that whether the payments are of reasonable amount or not. If the expanses are unreasonably high he may take steps to control them. An 211 entrepreneur who regularly checks his cash and bank balances would never face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who doesn’t distinguish between his revenue and profits, may spend all his receipts for his personal purposes subsequently...
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...wide range of formats, guides and software in the PC to help individuals like me to work faster. As lot of my time is saved by using a PC, I can focus on making pocket money in this time. 3. My PC can help me stay connected with my dear ones. A PC can reduce the cost for communication considerably. I stay connected to my friends, family and classmates through e-mails, phone calls via PC, Facebook, and Skype etc. I need to have internet for calling via PC but I need internet for many things else and therefore, I use my PC for communication. A PC helps me to make international video calling through skype and other software and thus I can stay connected with my parents and relatives in India at low cost. 4. Using my PC reduces the errors incurred otherwise when I do calculations...
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...many of the hostels in schools countrywide. It provides all the basic services that a concierge needs and keeps the records of all students in a hostel keeping him/her up-to-date with the information that is stored in the students’ rooms’ database. This will in turn help overcome the drawbacks that are encountered with the manual system in that there will be less human error, strength and strain of manual inputting ,high security, easy to handle, easy data updating, data consistency and easy record keeping. With this application I intend that the following services will be made available to the janitor; ▪ Each student allocated a particular room in a hostel will have his/her information including a photo stored in a database replacing the current manual recording in books. ▪ The application will generate a receipt and a report about a resident when prompted ▪ The accommodation fee paid by a student to be fed into the database ▪ Any penalty fee to a student to be recorded and for a student to clear with the system they must compensate the penalty ▪ Any complaint concerning the room raised by a resident will be stored in the system which will constantly remind the janitor until it is sorted out. ▪ The application will be updated with information from booking of rooms database when a student books a room The tools that will be used in developing and running the system are; 1. Netbeans IDE 2. J2SE 3. MySQL(phpMyAdmin) 4. Windows...
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...the effectiveness of this memoir is to figure out who Bruni's intended audience is. I think his intended audience is his critics, friends, family, followers (foodies), and people who have struggled with their weight. I think that some of his hope for this book was to help people that have had some of the same problems with self image. In the last chapter he reflects on his niece Leslie "picking at her food and controlling her portions" (350). He feels this might be normal for a girl her age but he makes a silent wish that Leslie's eating habits will stay normal. I do not think he would have made this wish if at least some part of him did not want to stop people from going through the same struggles he has. Bruni struggled with his perceived body image, for instance, as when he talks about having to jump out of the pool and quickly find a t-shirt to cover his body (47). I do not think he wants other people to feel the need to run and cover up so nobody sees what they look like without a shirt. One of the most important aspects of a good memoir is for the writer to assess who his/her intended audience is. Then to make certain the details would be interesting to the intended audience. Bruni does a good job of keeping a common thread that would be of interest to his intended...
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...Report Of The Tangerine Beach Hotel Reservation System Table of Contents 1. General Details about the Organization. 2. Business Processes of the Organization. 3. Existing Information Systems. (Both Computer Based & Manual) 4. Computer Based Information Systems that could be introduced. 5. Recommendations and Discussion. 1.GENERAL DETAILS ABOUT THE ORGANIZATION Tangerine Beach Hotel is a 03 star hotel in Sri Lanka which is an associate company of Mercantile Investments Limited, which has diversified into tourism with other 03 resort hotels. 1. Royal Palms Beach Hotel in Kaluthara. 2. Grand Hotel in NuwaraEliya. 3. Nilaveli Beach Hotel in Trincomalee. With the collaborative enhance support from the Tangerine Tours; Tangerine Group of Hotels has built up a clientele from all over the world. Tangerine Beach Hotel is located in Kalutara area. It belongs to the Tangerine Group of companies. The hotel consists of many facilities to full fill their guest’s requirements to the maximum level. It include 166 bedrooms comprising of 6 spacious overlooking the Magnificent ocean, Cable television & Local Channels, Mini Fridges, Telephone and IDD facilities, Hot & Cold water, WIFI ( available in Lobby and selected other public areas), and also they are providing customers with finest meals in the country with the guidance of experienced chefs. Nowadays hotel industry has lots of opportunities and the industry is in its highest peak now. Hotel Tangerine...
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...several factors that Hoffman could use in forecasting weekly sales. 2. What can be done to lower turnover in large restaurants? 3. Why is seniority important in scheduling servers? 4. How does the schedule impact productivity? Chapter 16 Video Case Study – JIT at Arnold Palmer Hospital – Page 646 1. What do you recommend be done when an error is found in a pack as it is opened for an operation? Patient safety should always be the number one priority. If an error is found when a surgery pack is opened for an operation, the surgery team will need to make a quick decision to determine if the error significant enough to require a replacement, how quickly can a replacement be secured, and if the operation needs to be postponed. Some errors might not be significant enough to cause great concern. For example, perhaps the pack was just loaded in the wrong order. Another error could be that a specific item is missing, but it could be readily available from the hospital’s general supplies. Regardless of the error, the issue must be addressed with the suppliers. They need to know the details of the error so that they can determine the source and prevent it from happening in the future. 2. How might the procedure for custom surgical packs described here be improved? The video seems to indicate that the process for JIT delivery of the custom surgical packs is working well. One area where I would suggest an improvement be made would be with the integration...
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...Let’s first understand the difference between the forecast driven system and the JIT (Just in Time) demand based system so that we can reflect on the benefits and disadvantages of each one of the systems. Let’s first take a look at the forecast driven system because it one of the most traditional way and also used quite extensively in the manufacturing firms in USA. In a layman’s language the way this system works is by predicting a forecast of sales demand based on statistical forecasting models (Decision Maker’s Direct, 2010). This forecast is then passed down the supply chain so that a manufacturing plan can be made to meet the sales demand. Since the manufacturing often produce more than one variations of an item and many times the products are customized and this makes this forecasting process very complex. For example take the case of Silly Bandz factory. I agree that all the items are rubber bands but for every variation the machines have to be set up again and this complicate the process of production management and inventory management and control. In order to understand the imperfection of the forecasting it is necessary to understand first how the process works. Each firm has some indicator for their future sales demand but rarely any firm has the complete and perfect information. The future demand is dependent on various factors like structure and nature of the business (Decision Maker’s Direct, 2010). In some cases the customer themselves provide the...
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...ASSIGNMENT 1 – ( INDIVIDUAL ) Question 1 Give the definition of accounting. Accounting is defined as practice and body of knowledge concerned primarily with methods for recording transactions, keeping financial records, performing internal audits, reporting and analyzing financial information to the management, and advising on taxation matters. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity. Accounting provides information on the resources available to a firm, the meansemployed to finance those resources, and the results achieved through their use. Question 2 Explain the process of accounting cycle. Identify the transaction or other recognizable event. Prepare the transaction’s source document such as a purchase order or invoice. Analyze and classify the transaction. This step involves quantifying the transaction in monetary terms (eg ; RM and cents), identifying the accounts that are affected and whether those accounts are to be credited or debited. Record the transaction by making entries in the appropriate journal, such as sales journal, purchase journal, or general journal. Such entries are made in chronological order. Post general journal entries to the ledger accounts. Prepare the trial balance...
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