Essays on General Ledger

Chart of Accounts

Wild, Shaw and Chiappetta (2015, p.58) defines the chart of accounts as a list of financial accounts used by the company to identify specific transactions in its journal/ledgers. Warren, Reeve and Fess (2005, p.48) pointed out that the ledger accounts are usually listed in a specific order, which is either from the most significant value or its ease of liquidation. But some companies list their chart of accounts based on their order of appearance in the financial statements (Warren, Reeve and Fess, 2005, p.48). However, in order to facilitate the tracking of business transactions for future references each of ...

Microsoft Dynamics represents a system that encompasses some popular enterprise resource planning (EPR) devices. The whole system is perfectly geared to the needs of middle-sized corporations and in itself is backed up Microsoft a division of which it is, or to be more precise the EPR software being part of Microsoft Dynamics is included in the broader Microsoft Corporation. Lately the EPR software has been embraced by many organizations, even those of a larger size and their subdivisions. This fact testifies to flexibility of the EPR techniques. Naturally enough there are a number of EPR software systems which are ...

Adjusting process is the method of analyzing and correcting the accounts at the end of the period before the preparation of the financial statements while the journal entries that always update the accounts at the end of every accounting period is the adjusting entries (Godwin & Alderman, 2012). Firstly, it is important to make the appropriate journal analysis of each transaction during the adjustment procedure. Secondly, post every transaction to the respective ledgers. However, at the end of the accounting period, several balances in the ledger account can be reported without any change in the financial statements. For instance, the ...

Question 1

In order to understand why people commit fraud, many companies use the fraud triangle to analyze the attributes, which make people commit fraud. The importance of the fraud triangle is to understand fraud and its significance demonstrated in the Darren Darren’s case. The explanation of why people commit fraud is examined by the use of fraud triangle. It evaluates the circumstances that make employees violate ethical standards and be involved in the fraud cases. Therefore, fraud triangle joins the perceived pressure, perceived opportunity and rationalization to facilitate fraud. The first required attribute is Incentive, motivation, or pressure ...

Auditing - 2

Report Introduction: I was asked by the management of Cotton Company to perform an audit review on their current controls in sales and cash receipts and identify their strong controls in the existing system. Moreover, I was asked to provide a detail of the deficiencies in the internal controls and provide their recommendations.

Main Report:

Existing Controls in Sales and Cash Receipts: Sales on store’s own billing: The sales made in the Cotton Company are made on their own billing receipt instead of using the credit cards from the customers. Most of the sales of the Cotton Company is ...

CDH520- Sharmeen Sultana

As complex as the world of accounting is, so is the various accounting statements. Hence, it is of extreme importance to understand as what each accounting statement means and what purpose does it serve. Some of the basic accounting statements are discussed for your convenience: General Ledger: These are the central repository of all the accounting information of a company that summarizes all the transaction held by the company. In simple words, it is a complete summarized record of all the accounting transactions so posted under the double-entry accounting system under which each accounting transaction affects two financial items, one ...

Source: (MDD, 2013)

Whenever a merchandise sales is made on credit, the sales information is recorded in the sales day book. This is the first document where the records are entered, and they are also known as books of prime entry. In the general ledger, there are accounts for Cash, Accounts Payable, Sales, Purchases and Depreciation. The sales will be recorded in the sales account of the general ledger. The account of the customer who has purchased the goods from the company is going to be debited. At the ends of the period the difference of the debt side and the credit side ...

Accounting plays a vital role in today’s automated world. In order to improve the efficiency, there have been some major changes in the field of accounting during the past few years. McCarthy (1982) suggested a substitute approach in order to represent accounting information. Instead of concentrating on debits and credits, which neglect some essential data about economic events, he proposed to present the detail about every resource in the firm’s control, the events that bring a change in the amount of these particular resources, and the agents who are a part of these events (‘The Resources, Events, and Agents (REA) Approach’). ...

This article is based on the general ledger and accounting efficiency which is the basis for the preparation of the financial statements for an entity. It explains how the proper management and review of the general ledger function helps in saving time and reducing audit risks. Further as it emphasizes the maintenance of ledger accounts and centralized company systems, all this enables in the preparation and accuracy of the company financial statements; the objectives for this week. This article relates to the maintenance and preparation of proper general ledger accounts and how this enables efficiency and effectiveness for ...

MANAGEMENT ACCOUNTING QUESTIONS

Question 1 The entity charged with the design and development of the activity based costing system is the company’s a person who possess a host of leadership abilities and prior knowledge of ABC technology most probably a person from the company’s accounting department . This individual would be charged with the role of coming up with the most effective costing system that can significantly boost the company’s drive towards the achievement of its objectives. The person selected should however have the maximum to have the support of the top managers, line managers and the entire staff of the company. ...

Revenue cycle refers to all the undertaking of a business entity which generates revenue in exchange of commodities either being goods or services.

In a merchandising company the revenue cycle consist of key stages which are crucial in administration of revenue generated in relation to goods sold as well as goods purchased for sale by the merchandising firm. The key stages of a revenue cycle system include the purchase, which involves the procurement of inventories for resale, purchase of inventories is carried out by the procurement department, the second stage is the sales stage which is administered by the sales department, in ...

Media is regularly publishing reports that suggest about the spread of malicious software across various networks and talk about the external threats that may cause irreversible harm to the network resources. Although, external threats are really troublesome and may cause a lot of negative business impact, the internal threats are far more powerful and may result in a much higher loss as compared to that of the external attacks. This business risk has led to the companies to create investigation systems in order to monitor the networks is that there can be a proactive analysis of the activities and detection of attacks. ...

As a matter of fact, financial occurrences happen all through the year. In most cases, these financial occurrences are recorded in books of accounts, in various ways depending on their nature. Notably, the recordings are first made in journal entries which mark the first step in financial analysis. An example of financial entries that are made in accounting is the adjusting entries. Arguably, adjusting entries are associated with income statement accounts as well as balance sheet accounts, (Loren, John & Jefferson, 2009).

Importance of adjusting entries

In this context, adjusting entries can be defined as journal entries that are usually made when an accounting ...