Assessment Questions For Accounting

Plagiarism and its Effects on Honest Students

Answer 1: 

Plagiarism is a punishable offense by the educational universities that refers to the adoption of other people work and submitting them as their own. Plagiarism is regarded as punishable as it result in being unfair to honest students by giving them reduced marks in compassion to other students who can achieve good marks through copying other people work (Porter and Norton, 2014).

Answer 2:

The two different ways of copy and paste:

1. Select the desired area and press copy in the excel sheet. After that in word document paste as special.
2. Other way is to copy the whole sheet in excel and paste in word document as an object.

In order to view the formula in excel, do the following:

1. Firstly select the sheet you want to view as formula view
2. Click on the formula tab in the menu bar
3. Click on the show formula

Spreadsheet with normal view:

Average of the numbers	Average
	545	546	547	548	546.5
	546	547	548	549	547.5
	547	548	549	550	548.5
	548	549	550	551	549.5
	549	550	551	552	550.5
Addition	2735	2740	2745	2750	2742.5

Spreadsheet with formula view:

Average of the numbers	Average
	545	546	547	548	=AVERAGE(B3:E3)
	546	547	548	549	=AVERAGE(B4:E4)
	547	548	549	550	=AVERAGE(B5:E5)
	548	549	550	551	=AVERAGE(B6:E6)
	549	550	551	552	=AVERAGE(B7:E7)
Addition	=SUM(B3:B7)	=SUM(C3:C7)	=SUM(D3:D7)	=SUM(E3:E7)	=SUM(F3:F7)

Answer 3:

The five web sites relevant to accounting together with their URLs:

https://www.accountingcoach.com/ : This website provides information to students and businesses regarding the skills and expertise required for working in the accounting field. It helps the readers in developing an understanding of the various important accounting terminologies. Thus, it provides vast information to the business owners and other people who are interested to develop a career in the field of accounting.

https://www.sleeter.com/  : The website aims to provide assistance to the accounting professionals  by resolving their queries and problems. The website has over 600 accounting professionals for providing consultation to the professionals interested in developing a career in accounting.

https://www.deardrebit.com/ : The website serves as an inline platform for various accounting professional to discuss about the accounting and financial issues.

https://daily.financialexecutives.org/financial-reporting/ : The website provides latest news and information about the accounting issues to the financial executives.

https://www.economist.com/?corporate%20accounting : It provides information related to the world politics, business and finance.

Answer 4:

The online website of CPA Australia is recognized as world’s largest accounting body in Australia with global membership of about 160,000 members. The online link to the website is:

https://www.cpaaustralia.com.au/about-us

The Professional Resources section within this website provides assistance to the accounting professionals about various accounting topics such as financial reporting, superannuation and many others.

Answer 5:

The business organizations are incorporating the use of latest and efficient computer devices for performing their operational activities rapidly and thus to stay competitive. As such, the business organizations are placing large focus on developing an effective computing environment within their workplaces for enhancing the efficiency of their business operations. My previous workplace was an IT company that has adopted the use of ERP (Enterprise Resource Planning) software. The ERP is management software that enables business organizations to manage and control their operational activities through the use of system of integrated applications. The use of ERP in my previous workplace has proved to very beneficial in integrating its various business processes and thus perfuming them efficiently within a short span of time. The most important feature of the ERP was that it provides a shared database for supporting various operational functions of different business units of an enterprise. My last organization has various business units and therefore the use of ERP enabled it to streamline the business process of its various units by sharing information across the various departments quickly. The use of ERP had helped in managing the internal and external resources of the organization effectively such as physical assets, human capital and financial resources. The organization uses ERP in all of its core business activities such as product planning, manufacturing, logistics, purchasing and sale.  As Such, ERP has enabled the organization to align its multiple business processes and thus increasing their operational efficiency. The better synchronization and automation of operational processes through the use of ERP has helped to a large extent in improving its productivity and sales through improving customer relationship management.  Thus, the computing environment in my previous workplace was very efficient as all the operational processes were automated that helped in faster communication and reducing the manual work (Abraham, Baets, Koppen and Nickolay, 2006).

Pasting Spreadsheets in Word Documents

Answer 6:

1. Major financial reports and their Purpose

The major financial reports developed by a business entity along-with their purposes are discussed below:

• Statement of Financial Position: The statement of financial position or balance sheet provides the information related to the assets, liabilities and equity structure of an entity as per a specific period of time. The main purpose of the balance sheet developed by an entity is to disclose the financial information related to its liquidity and capital structure.
• Income Statement: It is regarded to be the highly important financial statement as it discloses the financial facts and figures about the revenue, expense and profit or loss attained at the end of a financial year by a business entity. The main purpose of this financial report is to illustrate the operating performance of an entity.
• Cash Flows: The statement of cash flow depicts the inflows and outflows of cash that are incurred during a reporting period. The main purpose of this financial report is to represent the movement of cash flows experiences by a business entity.
• Statement of retained earnings: This financial statement reports the equity changes over a financial period trough depicting sale of stock, dividend paid and equity change due to profit or loss incurred by an entity. The main purpose is to represent the equity structure of an entity during a reporting period (Lee, 2014).

1. Lessons from ABC learning case study

The main reason for the downfall of the ABC Learning as analyzed form the case study was incorrect accounting valuation. The company does not pay attention to fundamentals of accounting resulting in its downfall. Thus, the case study has helped in analyzing that ignorance of financial accounting rules and principles for realization of higher profits can result in the failure of a business entity. The company was a recognized child care center of Australia but collapsed in the year 2007 due to manipulation of their assets. The company inflated the value of their assets resulting in its incorrect valuation. The company has placed large focus on its growth strategies and went on opening large number of child care centers. The company came under debt for the pursuit if its growth strategies which eventually lead to its collapse. Thus, the case study of ABC illustrated that a business entity must emphasize primarily on maintaining its sound financial structure rather than only focusing on realization of its grand vision (Thomson, 2008).

1. Ethical issues identified from the case study

• Proper Business Valuation: As analyzed form the ABC case study, a business entity must always adopt the use of proper accounting policies for correct valuation of its business assets.
• Developing Sound Financial Structure: ABC has developed and maintained a complex financial structure that was rather difficult for its investors to understand resulting in their loss of confidence to invest in the company. Thus, a company must always develop a simple financial structure that can be easily understood by the users.
• Manipulation of Accounts: The ABC Company unethically inflated the value of its assets and revenue realization thus resulted in its downfall. Thus, a company should not misrepresent its financial position for the sake of realizing higher profits (Thomson, 2008).

Answer 7:

Part 1:

Account Name	PALER	Account Name	PALER
Loan Payable	L	Office Furniture	A
Rent Expenses	E	Electricity and Gas expenses	E
Cash	A	Accounts Payable	L
Office Supplies	A	Amy Capital	P
Salary Expenses	E	Service Revenue	R
Salaries Payable	L	Accounts Receivable	A
Property Tax Expenses	E	Supplies Expenses	E
Prepaid Expenses	A	Investments	A

Part 2:

Income Statement
Design Studio
As on 31 Dec 2016
Particulars	Amounts
Service Revenue	$ 155,800.00
Less: Expenses
Rent Expenses	$   33,000.00
Salary Expenses	$   49,000.00
Property Tax Expenses	$      1,700.00
Electricity and Gas expenses	$      6,500.00
Supplies Expenses	$   33,600.00
Total	$ 123,800.00
Results of Operations	$   32,000.00

Part 3:

Calculation of Owner’s Drawings
Owner Capital at the beginning	$                   –
Capital Invested	$   15,000.00
Profit of the year	$   32,000.00
Sub total	$   47,000.00
Less: Ending Owner’s Capital	$   42,900.00
Amount of Owner Drawings	$      4,100.00

Part 4:

Balance Sheet as on 31 Dec 2016
Liabilities	Amount	Assets	Amount
Loan Payable	$   12,300.00	Cash	$   6,500.00
Salaries Payable	$      2,400.00	Office Supplies	$   3,300.00
Accounts Payable	$      2,400.00	Prepaid Expenses	$   8,000.00
		Office Furniture	$ 28,000.00
Amy Capital	$   42,900.00	Accounts Receivable	$   9,200.00
		Investments	$   5,000.00
Total	$   60,000.00	Total	$ 60,000.00

Answer 8:

Excel Sheet With Normal View:

Report	Case 1	Case 2	Case 3
revenue		$          600.00	K	$           835.00		$  2,040.00
expenses		$          300.00		$           300.00		$  1,480.00
dividends declared		$                   –		$              45.00	Q	$     810.00
additional investment by stockholders		$                   –		$              60.00		$     460.00
net income	E	$          300.00		$           550.00	P	$     210.00
retained earnings
beginning of year		$          110.00		$           650.00		$  2,240.00
end of year	D	$          410.00	J	$        1,200.00		$  2,450.00
paid -in capital
beginning of year		$          155.00		$           172.00	N	$  2,200.00
end of year	C	$          155.00	H	$           232.00		$  2,660.00
total assets
beginning of year		$          360.00	F	$        1,072.00	L	$  5,110.00
end of year		$          700.00		$        1,570.00	M	$  6,000.00
total liabilities
beginning of year	A	$            95.00		$           250.00		$     670.00
end of year	B	$          135.00	G	$           138.00		$     890.00

Excel Sheet with formula view:

Report	Case 1	Case 2	Case 3
revenue		600	K	=E10+E7+E8-E9		2040
expenses		300		300		1480
dividends declared		0		45	Q	=G6-G7-G10+G9
additional investment by stockholders		0		60		460
net income	E	=C6-C7		550	P	=G14-G13
retained earnings
beginning of year		110		650		2240
end of year	D	=C13+C10	J	=E13+E10		2450
paid -in capital
beginning of year		155		172	N	=G18-G9
end of year	C	=C17	H	=E17+E9		2660
total assets
beginning of year		360	F	=E13+E17+E25	L	=G25+G17+G13
end of year		700		1570	M	=G26+G18+G14
total liabilities
beginning of year	A	=C21-C13-C17		250		670
end of year	B	=C22-C18-C14	G	=E22-E18-E14		890

Answer 9:

Accounts with normal debit balances

• Cash Account
• Investments
• Accounts Receivables
• Inventory

Accounts with credit balances

• Loans and Borrowed account
• Share Capital
• Accounts payable
• Unpaid Expenses

Answer 10:

Normal View

Trial balance of Croatia Deliveries
as on 30 June 2017
Accounts Name	Debit	Credit
Capital		$     917,115.00
Insurance Expenses	$          4,500.00
Accounts Payable		$       35,640.00
Service Revenue		$     123,456.00
Building	$     480,760.00
Supplies Expenses	$          1,980.00
Cash	$       27,601.00
Salary Expenses	$     139,358.00
Trucks	$     302,348.00
Fuel Expenses	$       58,000.00
Drawings	$       27,500.00
Electricity Expenses	$          8,760.00
Accounts Receivable	$       28,760.00
Bills Payable		$       34,900.00
Supplies	$          3,654.00
Equipment	$       27,890.00
Total	$ 1,111,111.00	$ 1,111,111.00

Formula View:

Trial balance of Croatia Deliveries
as on 30 June 2017
Accounts Name	Debit	Credit
Capital		=917115
Insurance Expenses	4500
Accounts Payable		35640
Service Revenue		123456
Building	480760
Supplies Expenses	1980
Cash	=27601
Salary Expenses	=139358
Trucks	302348
Fuel Expenses	58000
Drawings	27500
Electricity Expenses	8760
Accounts Receivable	28760
Bills Payable		34900
Supplies	3654
Equipment	27890
Total	=SUM(C6:C21)	=SUM(D6:D21)

Trial Balance after making the changes

Answer 11:

Blank Crossword

Clues:

Across:

A: Accounting software facilitates recording business ___________

Down:

A: The basic accounting ______________ is Assets = Liabilities + Owner’s Equity.

B: An entry to the left-side of an account.

C: The financial statement that reports the revenues and expenses of a company for a period of time is the ________________ statement.

D: Some people refer to the income statement as the profit and ______ statement

Solved Crossword

							D
					E		E
					Q		B				L
					U		I				O
T	R	A	N	S	A	C	T	I	O	N	S
					T			N			S
					I			C
					O			O
					N			M
								E

Answer 12:

Two different types of adjustment entries

A: Prepayments of expenses

Example: Prepayment of Electricity expenses account 1500

To cash account 1500

B: Unearned Income

Example: Unearned Interest Income account 1200

To Interest income account 1200

Answer 13:

Current liabilities are the short-term liabilities of a business entity that needs to be settled down within 12 months of date in balance sheet such as account payable and taxes. On the other hand, non-current liabilities are long-term liabilities that business entity is not required to meet within 12 months from the reporting date such as bank loans and bonds (Robinson, Greuning, Henry and Broihahn, 2008).

Answer 14:

The current ratio depicts the short-term liquidity position of a business entity and is measured by considering the current assets relative to the current liabilities (Robinson, Greuning, Henry and Broihahn, 2008). For example, the current asset of an entity is 1000 and current liabilities are 500 then current ratio is calculated as:

Current Ratio=Current Assets/Current Liabilities

 Current Ratio =1000/500

 Current Ratio =2

Answer 15:

Normal View:

Formula View:

After making the changes

References

Abraham, A., Baets, B., Koppen, M. and Nickolay, B. 2006. Applied Soft Computing Technologies: The Challenge of Complexity. Springer Science & Business Media.

Lee, T.A. 2014. Evolution of Corporate Financial Reporting (RLE Accounting). Routledge.

Porter, G.A. and Norton, C.L. 2014. Financial Accounting: The Impact on Decision Makers. Cengage Learning.

Robinson, T., Greuning, H., Henry, E. and Broihahn, M. 2008. International Financial Statement Analysis. John Wiley & Sons.

Thomson, J. 2008. Lessons learned from ABC. Retrieved 21 August, 2017, from https://www.theaustralian.com.au/business/business-spectator/lessons-learned-from-abc/news-story/573a6ff5085d64f7b9c146c87d22d225