IT in Small Business Accounting Assignment Example | Topics and Well Written Essays - 1250 words

IT in Small Business Accounting - Assignment modelBoth sides of the Balance Sheet increase by $5000. Journal entry that would affect the Income Statement would be DR CR Retained Earnings $2000 Wages spending $2000 Assumption Retained Earnings decreases with the debiting and Wages Expense account decrease while being posted to the expenses in the Income Statement. Assignment 2 The primary documentals of bill are to fairly present the monetary information in the fiscal statements with necessary disclosures in conformance with Generally Accepted Accounting Principles (GAAP) so that users of the financial statements usher out use them to make informative decisions. This fulfills angiotensin converting enzyme of the main objectives which is to give assurance to the public closely financial statements. The main objective of the firm producing financial statements is to monitor business performance throughout the class and possibly compare with past results. When comparative finan cial statements are compiled, a better understanding of the train of consistency can be obtained. A fragment of this objective of accounting is to judge the performance of wariness and employees. Why isnt the company doing well when Sales exhaust gone up? Are employees being negligent with materials? Using this financial information the company can analyze the data to find out why the budgeted amounts for the operations budget and the actual data differ. In doing this, management will be able to practise questions about employee performance and its own performance. Another objective is to record all expenses and revenues in the correct period. This is important since in order to find the financial military capability we must know when to post revenues and expense to the income...This fulfills one of the main objectives which is to give assurance to the public about financial statements. The main objective of the firm producing financial statements is to monitor business perf ormance throughout the year and possibly compare with past results. When comparative financial statements are compiled, a better understanding of the level of consistency can be obtained. A part of this objective of accounting is to judge the performance of management and employees. Why isnt the company doing well when Sales have gone up? Are employees being careless with materials? Using this financial information the company can analyze the data to find out why the budgeted amounts for the operations budget and the actual data differ. In doing this, management will be able to answer questions about employee performance and its own performance. Another objective is to record all expenses and revenues in the correct period. This is important since in order to find the financial position we must know when to post revenues and expense to the income statement. We likewise need this information to prepare tax records. Another objective is to prepare for the future of the company. Manag ement needs to know which parts of the company are functioning inefficiently or efficiently. Certain departments may be functioning inefficiently and its important to know why and what can be done to prevent bollocks up or inefficiency.