Free Essay

Accounting

In: Business and Management

Submitted By Assemgabby
Words 1379
Pages 6
UNIVERSITY OF EDUCATION WINNEBA
COLLEGE OF TECHNOLOGY EDUCATION KUMASI

NAME : ASSEM GABRIEL AKROFI
PROGRAMME : BSc (ACCOUNTING EDUCATION) LEVEL : 100
CLASS : B
SUBJECT : ACCOUNTING
COURSE CODE : ACC 111
NAME OF LECTURER : J.Y DWOMMOR INDEX NUMBER : 5151010092

QUESTION
With the introduction of computer, accounting as an area of studying has out lead its importance because with two or three weeks of training, a computer programmer can prepare financial statement using computer application. A. What extend do you agree or disagree with this statement? B. In not less than two and less than five pages, write an essay on this issue.
SOLUTION
I disagree with the motion that a computer programmer can prepare financial statement on his own. To set the issue burning, let us consider who an accountant is and the role he or she performs in an organization as compared to a computer programmer.
An accountant is anyone who monitors and records the flow of money through a business or an organization. He or she verify the accuracy of all monetary transactions and to make sure that all these are legal and follow correct guidelines. Accountants may choose to work private individuals and help them with their financial decisions, tax returns or other money related issues. The accountant practises accountancy and accounting which is the disclosure, measurement or provision of assurance about financial information which help investors, tax authorities, managers and others who make decisions about allocating their financial recourses.
Part of the job description of an accountant in a small firm may include the responsibility for keeping all financial records. These records include accounts payable, retail sales and any other information relating to investment held by the company. These accounts are arranged in ledgers which are used to measure the financial stability of the company. Ledgers are always updated and may be consulted by higher ranking members of a company or managers when they are making important business decisions.
Accountants in larger firms also perform internal audits so as to ensure that the financial records of the company are correct. In order to avoid bias and subjectivity, an internal audit cannot be handled by an in- house accountant, therefore, many companies may rather hire outside accounting firm to perform their audits. Most times an accountant would rather specialize in a particular field such as book keeping, audits or taxes.
The accountant may be required to perform all or some of these tasks depending on the focus and specific needs of the organization they work for, * Document financial transactions of various types by entering account information data * Analyse accounting options and suggest financial accounting * Summarize financial status by collecting information and preparing balance sheet, profit and loss, account statement and other reports * Ensure accounting controls by suggesting procedures and policies * Secure sensitive accounting information by completing data base backups * Prepare payments by requesting disbursement and verifying documentation * Answer accounting related questions by interpreting as well as researching accounting regulations and policies * Study new and existing regulations and comply all legal requirements * Ensure that legal financial requirements are adhered to and advice management on relevant actions * Maintain customer confidence.
On the hand, accounting software describes a type of accounting application software programmed by I.T personnel to record, and process accounting transactions within function modules such as accounts payable, account receivable, payroll and trial balance. It functions as an accounting information system. Accounting software makes it easier to keep accurate financial records, reducing the time spend on your accounts. But that is just for starters.
Accounting software eases the pressures of running your business by making you more efficient and organized. For instance; * Spent less time on everyday task like invoicing, checking late payment or recording expenses. * Get an insight into your business – understand how you are doing and make good decisions. * Reduce HMRS stress – simplify your tax return and be confident you pay the right amount of VAT.
Programmers can do the following with accounting software: * Create and send invoice * Log business expenses * Check profit and loss * Submit VAT returns * Record deposits
However, I.T personnel cannot programme accounting software without the guidelines or help from a professional accountant. The professional accountant is needed to programme accounting software so that the software complies with; * Professional regulatory * Internal regulatory and other changes that may affect financial information.
Secondly, I.T personnel without in – depth knowledge in accounting cannot prepare income statement with an accounting software. Even if it is possible, the programmer must have the ability to interpret the income statement to make it more relevant and considerable by users of accounting statement to make some decision. Users of accounting statement are individuals and institutions such as shareholders, managers, customers, government, and general public just to mention a few. So in other for this institutions and individuals to understand the accounting information it must be interpreted by an accountant. When the account is well interpreted, users use it to know performance of the organisation. It is also used to measure the efficiency of the organisation by means of inter –company and intra company comparison. So in order for the interpretation to be done accurately and efficiently it must be done by trained accounting personnel.

The accountant can rather use two to three weeks of training to learn how to create and use accounting software to his or her benefit the following ways; * At the centre of your business because you record every transaction in your accounting software, it puts useful insights at your fingertips. See a snapshot of your cash flow or view a breakdown of client profitability instantly. These tools provide valuable insights into every aspect of your finances, helping you make key decisions with confidence. * Accounting software tends to be in the cloud. This means you access it online rather than installing it on your computer. It is more flexible because you can use it from different devices – like your computer, tablet or smart phone. No matter where you are or what device you use, you see the same, up – to - date figures. And you can easily share them with your accountant.
The cloud protects your data. When your financial data is stored on servers in the cloud, it is protected and backed up for you. This keeps it save, even if your computer crashes or you lose your laptop. All data sent over the internet is protected by bank – level encryption, which means your figures stay save from prying eyes. Moreover, before the financial statement is been publish it must be audit by an accountant. Financial statements are been prepared in accordance with certain standard set by professional accounting body. This auditing is done to check whether the financial statements are been prepared to the set standards by the accounting body. Accountants may sometimes prepare their financial statements in such a way that it will be more presentable to its users. They will not enclose all material facts that actually happened in the business. So in order to check all these things the accounts must be audited by an auditor. The auditor also checks that some frauds are prevented from the business. For someone to be able to audit a firm account he/she has to study accounting. Furthermore, the study of accounting, equip one with the skill and knowledge to prepare financial budget for an organisation. Budget is the quantitative and expressions of plans stated in either physical or terms or both. Budgeting involves forecasting into the future to make plans for it. When preparing budget one need to predict what is likely to happen in the organisation and make financial provisions for such situations. A budget shows the expected revenue and expenditure of an organisation. In conclusion, the programmer can work hand – in - hand with the accountant to expand accounting software. Accounting software becomes more powerful when you combine it with other useful functions. For instance: * Use a mobile application – to view your figures or record expenses quickly while you are out and about. * Accept credit or debit cards – and have these payments recorded against the correct invoice. * Connect to your bank – to ensure transactions on your statement match those in your account.
The introduction of accounting software cannot therefore underrate the study of accounting.

REFERENCE * E.N Assabil- Ascertain’s guide Financial Accounting for SHS

Similar Documents

Premium Essay

Accounting

...The Accounting Information System http://edugen.wileyplus.com/edugen/courses/crs6348/kieso978... Print this page CHAPTER 3 The Accounting Information System LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Understand basic accounting terminology. 2. Explain double-entry rules. 3. Identify steps in the accounting cycle. 4. Record transactions in journals, post to ledger accounts, and prepare a trial balance. 5. Explain the reasons for preparing adjusting entries. 6. Prepare financial statements from the adjusted trial balance. 7. Prepare closing entries. 8. Differentiate the cash basis of accounting from the accrual basis of accounting. 9. Identify adjusting entries that may be reversed. 10. Prepare a 10-column worksheet. 11. Apply IFRS to the accounting information system. Needed: a Reliable Information System Maintaining a set of accounting records is not optional. Regulators require that businesses prepare and retain a set of records and documents that can be audited. The U.S. Foreign Corrupt Practices Act, for example, requires public companies to “… make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets. …” But beyond these two reasons, a company that fails to keep an accurate record of its business transactions may lose revenue and is more likely to operate inefficiently. One reason accurate records are not provided is because of......

Words: 929 - Pages: 4

Premium Essay

Accounting

...and resources most accountancy students fail because “accounting assignments/problems are very time consuming and sometimes not easy to understand” (Francisco Vazquez, 2012). And those students don’t want their minds to explode and waste their time to come up with an answer or solution that they choose to play video games or surf the net than answering their math question/s. And these are also some habits why most accountancy students fail: 1. Not Attending Class 2. Not Doing Assignments 3. Not Taking Notes 4. Relying on Other Students 5. Not Managing Time Well 6. Procrastinating / Doing Last Minute Work 7. Not Following Instructions or Directions 8. Not Participating in Class 9. Mind-Blocking / Negative Thinking 10. Blaming Your Teacher And these are some explanation for some habits why most accountancy students fail based from the opinion of the author. 1. Not Attending Class. This one can really get my goat. I mean, the subject is not really that easy (especially if this is the first time you’re taking accounting, it’s almost like a foreign language to you) and if you don’t attend it, what will you really learn? Nothing beats attending class religiously to hear and see everything firsthand. 2. Not Doing Assignments. Now this they do all the time. As if they can pass if they don’t do their assignments. Personally, I think the only way to get good results from an accounting subject is to do the exercises and assignments......

Words: 3063 - Pages: 13

Premium Essay

Accounting

... | | |Principles of Accounting II | Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course introduces accounting concepts in a business environment. Students learn to create and apply accounting documents in making better business decisions. Other topics include plant assets, liabilities, accounting for corporations, investments, statements of cash flows, financial statement analysis, time value of money, payroll accounting, and other significant liabilities. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Financial accounting (7th ed.). Hoboken, NJ: John Wiley & Sons. All electronic materials are available on the student......

Words: 1761 - Pages: 8

Premium Essay

Accounting

...Comprehensive income can be calculated by summing the net income and other comprehensive income. Other comprehensive income is basically the net effect of accounting transactions, which sidestep the income statement and are identified directly in equity. Examples for such other comprehensive income are gains/losses on available for sale securities, unrecognized actuarial gains/losses, change in revaluation surplus, etc. Accumulated other comprehensive income is the accumulated change in equity (gains/losses) since the start of business due to accounting transactions that are directly accounted for in equity. The general purpose of the statement of comprehensive income helps financial statement users evaluate the past financial performance of a company and provides them a basis for predicting future performances. Financial statement users need this information to assess potential changes in the entities economic resources and its ability to generate cash from those resources. Financial statement users can also use this information to evaluate how any additional resources might be effectively used. This statement requires all income statement items to be reported either as a regular item in the income statement or a special item as other comprehensive income. Income is defined as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating......

Words: 1890 - Pages: 8

Premium Essay

Accounting

...Accrual Basis Of Accounting Over Cash Basis This paper will analyze accounting cash basis and accrual basis. It will also show how they are different.Cash-basis accounting is known to record all transactions. Now when cash tends in changing which means when revenue is received in paying out by the company. A payment or a cash receipt may be in a form of, credit card or even electronic transfer which that item is then paid.Cash basis is mainly used by a smaller businesses in which a creditor may want to understand the financial statements in a easier way. The way cash basis gets used is when a creditor wants to understand if they profit or loss in that company and accuracy of statements if something they don't worry about. When the cash is payment the revenue gets recorded but when it is received then after the expenses follow. Accrual basis accountings known when the revenue is earned, and expenses accrued. In accrual accounting, even if there's no cash changes you must then record all occurred transactions in the book. Like for instance, if one decides to sell on store credit, your transaction must be recorded right then and input it in an accounts receivable account until that payments gets received. Or if you decide to buy good on credit, you have to then right after input that transaction in a accounts payable until that cash is paid out.Accrual basis accounting is known to be used by the large businesses in the United States, and even in some t......

Words: 410 - Pages: 2

Premium Essay

Accounting

...WHAT IS ACCOUNTING? Identify Communicate What is the purpose of accounting ? Measure Record 9 3 8/13/2014 WHAT IS ACCOUNTING?  Accounting information is important because it…  Assists decision making  Provides information about the past, present and future performance of an entity  Measures business activity 10 WHO USES ACCOUNTING DATA? Internal users External users  Managers who plan,  Investors who make organise and run the decisions to buy, hold or business sell shares  e.g., marketing  Creditors who evaluate managers, production risks of giving credit and supervisors, chief lending money financial officers, other  e.g., suppliers, bankers employees  Government and regulatory bodies  e.g., ATO, ASIC 11 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) In order to measure, process and communicate financial information, accountants follow rules, principles and standards.  These rules, principles and standards are set by      International Accounting Standards Board (IASB) Australian Accounting Standards Board (AASB) Financial Reporting Council (FRC) Australian Securities & Investment Commission (ASIC) 12 4 8/13/2014 SOME PRINCIPLES AND ASSUMPTIONS Time period •Economic information can be captured and communicated over short periods of time Monetary unit assumption •Only data that can be expressed in terms of money is included in the accounting records Economic entity assumption •Can be......

Words: 1330 - Pages: 6

Premium Essay

Accounting

...Management Accounting IEX Prof. Dr. Michael Lederer . Dr © Copyright : Prof. Dr. Michael Lederer Hochschule Furtwangen – Furtwangen University © Copyright : Prof. Dr. Michael Lederer Page 1 Contents overview management accounting A. Introduction and basic concepts A.1 Cost terms A.2. Costing systems and cost allocation A.3 Cost-volume-profit analysis A.4 Operations accounting 5 11 26 63 78 B. The budgeting process B.1 Budgeting B.2 Variance analysis © Copyright : Prof. Dr. Michael Lederer 87 88 114 C. Relevant cost and decision making 136 D. Marketing and pricing decisions 157 © Copyright : Prof. Dr. Michael Lederer Page 2 Recommended literature • • • • • • • • • • Horngren/Datar/Rajan: Cost Accounting. A Managerial Emphasis, Pearson Global Edition Collier: Accounting for Managers, Wiley Horngren/Bhimani/Datar/Foster: Management and Cost Accounting. FT Prentice Hall Atrill & McLaney: Management Accounting for Decision Makers, Pearson Davis/Davis: Managerial Accounting. Wiley Cooke: The McGraw-Hill 36-Hour course in Finance for Non-Financial Managers. McGraw-Hill Bragg: Controller’s Guide to Planning and Controlling Operations. Wiley Roehl-Anderson, Bragg: Controllership - The Work of the Management Accountant. Wiley Blocher/Chen/Lin: Cost Management - A strategic emphasis, McGraw-Hill Professional Dictionary, Accounting; Tax; Banking; German-English/English-German, Schäffer© Copyright : Prof. Dr. Michael Lederer......

Words: 9677 - Pages: 39

Premium Essay

Accounting

... AN OVERVIW OF CREATIVE ACCOUNTING AND WINDOW DRESSING Introduction: Every organization is expected to operate within the confinement of best practices or core competence at least, which has tendency of leading them to distinctive competence or exceptional practice. Since business operations center basically on finance, firms therefore take the accounting records of their organizations very serious as it determines their stay in industry or extinction from the market (business operations). It is for the purpose of staying in business that firms have devised means to do so. It is necessary therefore to state that firms either do so legally or some do so illegally. This thus, brings one to the concept of creative accounting and window dressing. THE CONCEPT OF CREATIVE ACCOUNTING AND WINDOW-DRESSING Creative Accounting Creative accounting, also called aggressive accounting, Hollywood accounting, earnings management, or cooking the books, is the manipulation of financial numbers, usually within the letter of the law and accounting standards, but very much against their spirit and certainly not providing the “true and fair” view of a company that accounts are supposed to. Creative accounting is almost aliened with tax avoidance. It is such that legal means are used to manipulate the accounts of a firm such that even though they are legal, they can present a false view about the firm’s financial statement. A typical aim of creative accounting will be to inflate profit figures.......

Words: 1289 - Pages: 6

Premium Essay

Accounting

...Accounting Practices Name: XXXXXXXX oooo Accounting I-ACC100 Professor XXXXXXXXX Date: XXXXXXXXX Accounting Practices The year is 2011, and this country has been nearly crippled financially with the corporate accounting scandals. One of the most famous is the scandal of Enron, Waste Management, WorldCom, Qwest Communications, Health South Corporation, and then the infamous Bernard L. Madoff Investment scandal. The Medoff Ponzi scheme robbed millions of hard working people of the savings. This is considered to be the largest investment fraud ever committed by one person. This all lead to the new and enhanced accounting standards which is called the Sarbanes-Oxley Act of 2002. Analyze the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745) is also known as the Public Company Accounting Reform and Investor protection Act of 2002 and is simply referred to as SOX. This Federal law was passed in response to many corporate scandals which was mentioned in the abstract (Consulting, 2011). The public trust in accounting standards diminished, and everyone was pulling their money out of their investments which initiated the recession we are currently in. With the implementation of SOX the public is slowly regaining their trust on accounting practices, by simply knowing there is oversight. This wide ranging legislation has......

Words: 533 - Pages: 3

Premium Essay

Accounting

...Cost & Management Accounting Reporting System -Necessity, Role & Control Framework: An Analysis Management & Cost Accounting Reporting Systems are interwoven in the management processes of all well managed organizations across the globe. The necessity of such reporting systems is going to increase in future as the market-place become highly competitive and organization functions become more complicated and inter-twined. This fact also brings to fore the necessity of a common control framework to monitor this system so that it can contribute effectively and efficiently to the pre-determined organizational goals. What is Cost & Management Accounting Reporting Systems? Cost Accounting Reporting System deals with the process of tracking, measuring, recording and classifying the appropriate allocation of expenditure (financial and non-financial) for the determination of the cost of product or service in an organization and for the presentation of suitably arranged data for the purpose of control and guidance of management ( Horngren et al, 2010). Costs are measured in terms of Direct Costs, Indirect Costs and Overhead / Absorbed Costs. Managers use cost accounting to support decision making to reduce a company's costs of products and services and improve its profitability. Management Accounting Reporting System is concerned with the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of financial and......

Words: 1912 - Pages: 8

Premium Essay

Accounting

...Accounting or accountancy is the measurement, processing and communication of financial information about economic entities.[1][2] The modern field was established by the Italian mathematician Luca Pacioli in 1494.[3] Accounting, which has been called the "language of business",[4] measures the results of an organization's economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators.[5] Practitioners of accounting are known as accountants. The terms 'accounting' and 'financial reporting' are often used as synonyms. Accounting can be divided into several fields including financial accounting, management accounting, auditing, and tax accounting.[6]Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers;[7] and management accounting focuses on the measurement, analysis and reporting of information for internal use by management.[1][7] The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.[8] Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and......

Words: 279 - Pages: 2

Premium Essay

Accounting

...The future of the accounting profession will be a period of increased change and continuous development. The industry will require new levels of business flexibility and competition will intensify because new industry entrants will outsource and automate accounting, audit, and tax professionals, especially for routine and lower-value services. Financial service companies, banks, software and Internet firms will soon offer an increasing amount of accounting and tax-related products and services. Outsourcing to lower-cost countries will also continue to grow in the future. India, for example, already attracts global accounting work and other countries are moving into this field. Seeing opportunity, the government has targeted accounting outsourcing as a growth industry. Globalization will require accounting professionals to master new skills, knowledge, and standards as a growing number of clients operate across borders. The U.S. Securities and Exchange Commission has issued a plan to require U.S. companies to issue financial statements to the International Financial Reporting Standards (IFRS) by 2015. This means that practitioners will be required to gain expertise in both the U.S. Generally Accepted Accounting Principles (GAAP) and IFRS reporting standards. In addition to the changes brought by IFRS, other legal requirements will continue to expand as governments at all levels increasingly require accounting professionals to help with agreements. Even accounting......

Words: 713 - Pages: 3

Premium Essay

Accounting

... THEORY OF ACCOUNTS ACCOUNTING CONCEPTS 1. Which of the following statements is/are true? I. Accounting is a service activity intended to fulfill a useful function in society II. Accounting involves the art of recording, classifying and summarizing transaction and events, and interpreting the results thereof. III. Accounting is an art but not a science IV. Accounting provides quantitative financial information intended to be useful in making economic decisions a. I, II, III, IV c. I, II, IV b. I, II, III d. II, III, IV 2. The branch of accounting concerned with the presentation of financial information primarily for use of third person outside of business enterprise. a. Financial Accounting c. Government Accounting b. Management Accounting d. All of the above 3. Accounting is an art because a. of the existence of a body knowledge governing accounting practice b. of accounting theory c. the necessity of applying creative skill and ability d. None of the above 4. Financial accounting is the branch of accounting that focuses on a. special purpose reports of financial position and results of operations b. financial statements c. the various need of statement users d. general purpose reports of financial position and results of operations 5. General-purpose information is a. not intended to satisfy the specialized needs of individual users. b. intended to satisfy the specialized needs of individual users c. not intended to satisfy the...

Words: 1052 - Pages: 5

Premium Essay

Accounting

...Pre-Test 1. Financial accounting is an information system that: tracks and records an organization's business transactions 2. Jeff Brown is the sole owner of Shoe Central, a small shoe shop. One day, he buys a used car for his personal use, and pays $2,000 from his checking account. The fact that this transaction has no effect on Shoe Central's financial accounts is an application of the: 3. Jeff Brown, owner of Shoe Central, a small shoe store, buys cleaning supplies for his store once every six months. The fact that his accountant writes off, or records as expenses, the full cost of the cleaning supplies when they are purchased, rather than each monthly accounting period as they are used, is an application of the: 4. Oliver Enterprises buys a new stamping machine for $10,000 at an auction held by a company in bankruptcy proceedings. The machine is a very good deal; Oliver would have paid about $12,000 to buy it in the open market. Which of the following statements best describes the application of the historical cost concept? 5. Tournas Sports receives a special order for 100 team jerseys. The customer pays the full amount, $2,000, at the time of the order. The jerseys will be delivered in two weeks. Choose the statement that best reflects the application of the revenue recognition concept at the time of the order: 6. On April 30, Jemison Engineering receives a special order for a swing set, to be delivered to the customer in a month's time. Jemison...

Words: 13926 - Pages: 56

Premium Essay

Accounting

...ACT 4000 Week 2 Materials TABLE OF CONTENTS Learning Objectives..................................................................................................... 2 Basic Accounting Concepts ....................................................................................... 3 Cash versus Accrual Accounting................................................................................7 Qualitative Characteristics of Accounting Information ...........................................9 Valuations on the Balance Sheet ................................................................................11 Effects of Transactions on Financial Statements ......................................................13 Activity #1 ....................................................................................................................19 Activity #2 ....................................................................................................................20 Activity #3 ....................................................................................................................21 Activity #4 ....................................................................................................................22 Activity #5 ....................................................................................................................23 Activity #6 ....................................................................................................................24...

Words: 10125 - Pages: 41