...Accounting System Paper Jamira Perry HCS/405 July 18, 2011 Diana Schilling Accounting System Paper When it comes to accounting, people only think that it is associated with inside banking. There is more to accounting than inside banking because accounting has elements as well as any other system. It may differ from other types of systems because it is just what it says and that is accounting. Some people don’t like the accounting situation because it consists of math and that is something they are not into. I am going to discuss some of the elements of the accounting system and why accounting is important for healthcare organizations. One element of accounting is chart accounts, which is a list of each item in the system. The chart accounts are divided in to five sections and they are assets, net assets or fund balances, liabilities, expenses, and revenues. The things about chart accounts is that each account has its own individual identifying number so the system will know exactly who it belongs to. The second type of element of accounting is the general ledger, and this organizes information by the accounts. The thing about this is that the chart accounts acts like the contents to the general ledger and the general ledger maintains a year-to-date account balance for each account in the system. The data is entered into the system only once and once this happens, the data entry has to be approved by the user. The third element is journals and subsidiary...
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...Accounting Equation Paper The accounting equation is quite simply expressed as: Assets = Liabilities + Shareholder Equity or the accounting equation can also appear as the following: Liabilities = Assets – Shareholder Equity and also Shareholder Equity = Assets – Liabilities. The common theme is balance, no matter how the accounting equation is written it must reflect the total number of company assets are equal to the total number of liabilities the company has and those numbers are equal to shareholder equity and balance on the balance sheet. Though simply put, the accounting equation is a complex network of data displayed on the balance sheet and any transaction can offset the equation. On the same token a sale or perhaps a purchase will also be reflected on both sides of the accounting equation. At its conception a company begins at zero, $0 = $0 + $0 (Assets = Liabilities + Shareholder Equity) and any type of transaction should be reflected on both sides of the accounting equation. For example, if the owner of a new company secures a small business loan for $5,000 and decided to deposit the money in to the company account then the accounting equation will reflect: (Assets) $5,000 = $0 (Liabilities) + (Shareholder Equity) $5,000. As the company begins to get off the ground, operating costs begin to accumulate as well as supplies and expenses, those respective amounts would be reflected under Liabilities and would be subtracted from Assets and the Shareholder Equity. Thus...
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...Accounting Equation Paper ACC 300 University of Phoenix Accounting Equation Paper No matter how big or small a company is, the business will have some sort of financial transaction coming in or out that will affect the company’s financial standing. In any company, the accountant or accounting department plays a crucial role in ensuring the company succeeds. The main role of accounting is to analyze records and keep track of all financial transactions. The resources that make up a company’s assets, as well as the accounting equation, are liabilities and owner’s equity. At first, owner’s equity is affected by capitals such as issuing stocks. Once the business is up and running, income as well as expenses will be added to the balance sheets. Assets include everything the company owns, from the building to the package of paperclips. Liabilities are debts the company has, to other businesses or individuals. These debtors could include vendors, employees, or financial institutions that loaned money. Equity is also referred to as capital and consists of assets and any debts owed to the business from outside sources. In order to understand the accounting equation, the accounting department as well as leadership must understand how these relate to one another. The accounting equation is as follows: Assets = Liabilities + Owners/Stockholders Equity. Examples of assets include cash, account receivable, and equipment (Kimmel, 2011). The way that this accounting equation...
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...RUNNING HEAD: ACCOUNTING PRACTICES AND ENTRIES PAPER Cheryl Abdur-Rahman Accounting Practices and Entries Prof: Agnes Samaniego February 13, 2010 Accounting practices and principles are at the heart of financial management (McLean, 2003). Every organization needs to have a viable accounting system in place. It is up to the organization to find the course of financial action that maximizes the well –being of the organization (McLean, 2003). Accrual principle requires that revenues be recorded in the period in which the associated service is performed, and that expenses be recorded in the period in which they are incurred regardless of whether or not cash has changed hands (McLean, 2003). On the other hand cash flow requires the investor’s initial contribution which is the same as under accrual accounting, but now is recognized as a source of cash (McLean 2003). Under cash flow accounting, a measure of a company’s financial health, equals cash receipt minus cash payments over a given period of time, or equivalently net profit plus amount charged off for depreciation, and depletion (Investor worlds.com, 2011). Fund accounting has a different concept, in which an accounting system is only used for governmental entities, including hospitals, clinics, and public health departments. Fund accountings are appropriation based, depending on appropriation from the public purse for their operating and capital funds (McLean 2003). To maintain...
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...Jan Turyna MANAGERIAL ACCOUNTING – CASE ANALYSES CASE 1 Management Board of Furniture Company X is considering one-year contract for producing office desks. Accounting Department has prepared preliminary list of contract costs and revenues: |Specification |Amount | |1. Direct material costs, including: | | |- plywood (stock-carried in company’s store) |20000 | |- varnish (ordered) |9000 | |- metal connectors (still not ordered) |1500 | |2. Direct labor costs |20000 | |3. Indirect labor costs (salary of technical supervisor) |5000 | |4. Technical equipment, including: | | |- rented one (200/per week) |10400 | |- company’s own equipment (one year’s depreciation)...
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...Managerial accounting is a branch of accounting that observes and calculates the “actual costs” of a company or organizations operation. Managerial accounting is very important in helping managers within the company/organization make decisions that are best for the company in day-to-day and short term operations. Managerial accounting information that is used for making decisions are; information on the cost of a company/organizations products and services, budgets, performance reports, and any other information which might assist managers in their planning and control activities. Managerial and financial accounting is different in a few aspects, from the types of statements they prepare to the reasons that each statement is prepared and how they are important to users of the statements. Managerial accounting is more for the need and use within the company/organization, where financial accounting is used more for outside of the company/organization. Managerial accounting is concentrated more on providing information to personnel that works within the company to help direct and control the operation within that company. It can help determine things such as what to charge for products made by the company/organization based on what the costs to produce the product are. Managerial accounting is also able to show total costs involved in the total production of products or services because of the types of statements that are prepared and how exact costs are broken down. Financial...
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...Accounting Cycle Paper Stacy Keyser University of Phoenix ACC/421 Cito Vanges January 9, 2012 Howard County Accounting Overview I work for the Howard County Health Department in the Fiscal Department as the Accounts Payable. I have been working for the health department for three years. The Health Department is divided up between the state and the county. What this means is that we have to provide financial documents to the state and the county. The reason that we have to report to the state and county with financial documents is because we get grants and core money for our programs that we have. The state and the county have two different codes that we use for them so that means that we have two different systems that we use. The system that we use for the State is called Fast Tracking System (FTS) and the system that we use for the county is called the SAP/ERP. The fast tracking system is for the state because this is the system that has all their codes in it and we also use it for our records. The SAP/ERP is what the county wants us to use so we can pay our bill. The county is the one that pays our bills out of the grant and core money. We have different codes for each department we have so the county knows who is spending the money and what they are spending it on. This system is brand new so we are all getting used to this new system. In the Fiscal Department we have the Accounts Receivable...
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...Junior Philippine Institute of Accountants Philippine School of Business Administration-Manila Accounting 1 Mid-term General Evaluation I. Theories 1. During the lifetime of an entity, accountants produce Financial Statements at arbitrary points in time in accordance with which basic accounting concept? a. Objectivity c. Matching Principle b. Periodicity d. Conservatism 2. The debit and credit analysis of a transaction normally takes place a. when the entry is posted to the ledger b. before an entity is recorded in a journal c. when the trial balance is prepared d. at some other point in the accounting cycle 3. An acrrued revenue can best be described as an amount a. not collected and not currently matched with expenses b. not collected and currently matched with expenses c. collected and not currently matched with expenses d. collected and currently matched with the expenses 4. The last step in the accounting cycle is to a. journalize and post adjusting entries b. journalize and post closing entries c. prepare Financial Statements d. prepare a post closing trial balance 5. A collection of accounts other than general ledger accounts which shows the details underlying the balance of a controlling account in the general ledger a. T-account c. ledger ...
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...3. Shifting to LIFO inventory costing has been completed and will result in a life to date increase in net income of 7 cents. Therefore the following must be discussed in the meeting: US GAAP would require to report or disclose this net income in the quarterly 100 * Interim reports: In order to facilitate management control, legislative oversight or other purposes, appropriate interim financial statements and reports of financial position, operating results and other pertinent information should be prepared. * Comprehensive annual financial report. A comprehensive annual financial report (CAFR) should be prepared covering all activities of the primary government and providing an overview of its discretely presented component units. It should contain the following sections: 1. Introductory section. The introductory section includes the table of contents and letter of transmittal. 2. Financial section. The financial section includes: * The independent auditor's report; * Management's discussion and analysis (MD&A) * Basic financial statements: 3. Statistical section. The statistical section includes additional financial, economic, and demographic information. * These events would be reflected in the quarterly income statement as an increase in net income of 7 cents * report the performance, net income, earnings per share, earnings from continuing operations and net sales * EPS concerns from the CFO and president would be: how...
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...and Economics Department of Accounting EXAM CODES: ACW2020 TITLE OF PAPER: COST INFORMATION FOR DECISION MAKING EXAM DURATION: 3 hours READING TIME: 10 minutes THIS PAPER IS FOR STUDENTS STUDYING AT: (office use only - tick where applicable) Berwick Clayton Peninsula Distance Education Caulfield Gippsland Sunway Other (specify) Open Learning During an exam, you must not have in your possession, a book, notes, paper, calculator, pencil case, mobile phone or any other material/item which has not been authorised for the exam or specifically permitted as noted below. Any material or item on your desk, chair or person will be deemed to be in your possession. You are reminded that possession of unauthorised materials in an exam is a disciplinable offence under Monash Statute 4.1. AUTHORISED MATERIALS CALCULATORS YES NO (If YES, only calculators with an 'approved for use' Faculty label are permitted) OPEN BOOK YES NO SPECIFICALLY PERMITTED ITEMS if yes, items permitted are: YES NO This paper consists of six (6) questions printed on a total of ten (10) pages. Students must attempt to answer ALL questions. STUDENT ID: …………………………... DESK NUMBER: ……………………. PLEASE CHECK THE PAPER BEFORE COMMENCING. THIS IS A FINAL PAPER. THIS EXAMINATION PAPER MUST BE INSERTED INTO THE ANSWER BOOK AT THE COMPLETION OF THE PAPER. NO EXAMINATION PAPERS SHOULD BE REMOVED FROM THE EXAMINATION...
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...Accounting Cycle Paper ACC421 June 3, 2013 Accounting Cycle Paper Although I work for a major corporation, Walgreens, I have nothing to do with the accounting department or the cycle. I will however use this paper to explain the accounting cycle as well as the people that would be involved within the cycle. Generally the people involved in the accounting cycle would be record-keepers, accounting clerks; financial managers as well as staff accountants all have a hand in the parts of the accounting cycles. Bookkeepers and accounting clerks are generally the ones that record the entries and prepare statements for financial managers and staff accountants to approve. The first step of the accounting cycle would be to identify and analyze the transaction and events that need to be accounted for. Even though the generally accepted accounting principles (GAAP) has guidelines there are no rules to what events or transaction a company is required to record. A company should record every sale or purchase no matter how big or small it is. Once these transactions or events have been analyzed, they are recorded in the next step which is journalizing the transactions. There are several different places these transactions are recorded. Some of these places are the general journal, cash receipts journal, cash disbursements journal, purchases journal, sales journal and other special journals depending on the company (Kieso, Weygandt, & Warfield, 2012). Then these transactions...
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...Accounting Cycle Paper ACC/421 Accounting Cycle Paper In this paper I will outline the purpose of both accounting and financial reporting within an organization in general. I will also give a description of the people, processes, and systems that are a part of the accounting and financial reporting processes followed by a conclusion. Purpose of Accounting The purpose of accounting to gather and report on any financial information within the organization about things such as: the performance of the company, their financial position, and the cash flows of the company. With this information the company can then make business decisions about management of their business, investments to be made, or money they can lend. All of this information is known as the accounting records and accounting transactions and recorded as invoices for either suppliers or customers of the company. Once the financial information has been added to the accounting records it is all put together into financial statements to include the following: income statement, balance sheet, statement of cash flows, statement of retained earnings, and any disclosures. Purpose of Financial Reporting Documents, or the financial reports, are gathered in order to keep track of money going in or going out. Essentially, there is a record of how much money your business is making or losing. Anyone investing in the business has the right to know how their money is being used and can know this by looking at the financial...
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...Financial Statement Paper ACC/290 Financial Statement Paper Finance statements are very important in the accounting world. Here are a few questions that will be answered, to help better understand accounting. What is a finance statement? How does it provide benefit to the internal users? How does it provide benefit to external investors and creditors? There are four basic financial statements that are used in everyday life. These statements are used on many different scales and many different levels of use. The four basic financial statement sheets that are widely used are (1) An income statement (2) A retained earnings statement (3) a balance sheet (4) A statement of cash flow. An income statement shows the revenue a company made over a specific time period. Usually a company would want to know the yearly totals, so an income statement would be the best statement to review. The income statement shows the company’s net earnings and net losses. An income statement also shows how much money shareholders would receive if the company distributed the net earnings. The income statement shows, what is called “The Bottom Line”. There are many things that the income statement keeps track of; it shows money brought into the company from sales and products sold, which is called “gross”. It provides detail on items that are not expected to collect, such as sales on products, and returns. This is also known as the “returns and allowances”. If you subtract the returns...
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...Accounting Equation ACC/300 October 6, 2014 Accounting Equation From the smallest sole proprietorship to the largest corporation, all transactions in a business setting will have an effect on a company’s monetary status. The monetary status of a business is defined by three things: liabilities, assets and owner’s equity. The liabilities are debts or obligations to other people and assets are property or funds owned by the company. The owner’s equity is the total assets of a company minus its total liabilities. The accounting equation: Assets = Liabilities + Owner’s Equity shows the association between the three types of accounts in the accounting world. The accounting equation differs slightly between a corporation and a sole proprietorship. The reason is because a sole proprietorship owns all the equity while a corporation shares the equity with stockholders. Thus, the accounting equation for a one-owner business is: Assets = Liabilities + Equity. The accounting equation for a corporation would be the same except the last part of the equation which would read as stockholder’s equity. Examples of assets include cash, account receivables, and equipment (Kimmel, Weygandt, & Keiso, 2010). From the accounting equation, the amount of assets must equal the combined amount of liabilities plus the equity. Examples of liabilities include notes payable, accounts payable, and salaries payable (Kimmel, Weygandt, & Keiso, 2010). Examples of owner’s or stockholder’s...
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...Accounting Standards Board Paper Katherine Meyer ACC/ 541 Kenneth Burton July 30, 2012 The Accounting Standards Board and the Financial Accounting Standards Board have been critical in modernizing the accounting field. The Accounting Standards Board was created out of criticism of the field and the Financial Accounting Standards Board was created out of criticism of the Accounting Standards Board. The histories of the boards have improved the accounting profession and have made the flow of information more fluid. Around 1959 the methods that were used to formulate accounting principles were in question because the methods had not arisen from research or had been based on theory. About the same time, the CAP was being questioned for issuing inconsistent standards. The CAP was made up of part- time members whose independence quickly came into question. The members of the CAP were also required to also be members of the AICPA and it was not long before accountants and the financial statement users were demanding a wider representation in the development of accounting principles. In response to the demand the AICPA forms the Accounting Principles Board or the APB. The APB was made up of seventeen to twenty- one accounting professionals, individuals from the industry, the government, and academia. The objectives of the APB were to advance the written expression of the generally accepted accounting principles and to narrow the areas of differences in appropriate practice...
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