Friday, August 9, 2019

Accounting ds Coursework Example | Topics and Well Written Essays - 500 words

Accounting ds - Coursework Example A number of businesses use computerized systems to handle each step in their process of accounting. Companies usually improve their AISs to remain competitive in the industry and comply with the Sarbanes-Oxley Act of 2002 (Simkin, 2014). There are three types of Accounting Information Systems, namely manual systems, legacy systems and modern, integrated IT systems. An organization’s choice of the system to use depends on its size, business needs, and types of business and how sophisticated the business is (Simkin, 2014). A well and carefully designed AIS usually makes a business to run smoothly on daily basis, however, a poorly-designed one hampers its operations. Just like in the cases of Lehman brothers and WorldCom, the data in AIS can be used in uncovering the story of what actually went wrong. A successful business normally has an efficient and accurate accounting information system that is well maintained. Q2 A company purchased a cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? Firstly, we record the ending balances from the bank statement. Secondly, prepare a detailed list of all the deposits in transit. Then we sum the two items. Thirdly, we prepare a detailed list of all the outstanding checks, checks written or sent but not cleared. We then correct any errors before getting the difference between the ending balance and the total outstanding to get adjusted bank balance. Fourthly, we adjust the general ledger balance by adding any interest received, subtracting NSF checks, correcting any errors and subtracting any service charges to get the adjusted general ledger balance. Finally, we compare the adjusted general ledger balance to the adjusted bank balance and the two items should agree. Q4 A company

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