What are some of the tasks an accounting system should be able to perform in order to ensure that a business's accounting information is accurate, reliable, and useful?
What will be an ideal response?
To ensure that your accounting information is accurate, reliable, and useful, the accounting system that you choose should easily and efficiently accomplish the following tasks:
1. Provide a simple, easy-to-understand user interface.
2. Have an exhaustive context-sensitive help function.
3. Produce an income statement that clearly lists revenues and expenses by appropriate categories for your industry and type of business.
4. Produce a classified balance sheet that clearly shows the financial position of your business.
5. Facilitate the development of a cash budget.
6. Facilitate the task of developing operating and investment budgets.
7. Produce financial statements in approved formats to be furnished to outside investors, bankers, and regulators.
8. Produce multiple-year comparison financial statements for management use.
9. Provide a method for you to define and produce custom reports to meet your management needs.
10. Be able to export financial data in a form that can be used by your accountant and can be imported into tax preparation and spreadsheet programs.
11. Maintain an internal "audit trail" that records all entries and changes to the accounting system in order to facilitate the identification and correction of errors.
12. Enforce security measures to reduce the opportunity for employee misuse or fraud.
13. Have provisions that will either allow the program to grow with your business or to easily export its data into programs that can handle larger businesses.
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Which of the following documents represents a contract between two parties?
a. shipping's inventory notification b. packing slip c. customer acknowledgement d. bill of lading
Southeastern Company sold merchandise for $4,450 to Northern Company on account. The cost of goods sold was $1,185. Southeastern Company uses a perpetual inventory system and special journals. The $4,450 is recorded as ________.
A) an entry in the general journal B) Accounts Receivable DR, Sales Revenue CR column of the sales journal C) Merchandise Inventory DR column of the purchases journal D) Accounts Receivable CR column of cash receipts journal
A costing method that involves ongoing efforts for continuous improvement to reduce product costs, increase product quality and improve the production process after manufacturing activities have begun is referred to as ______________________________
Fill in the blank(s) with correct word
JIT concepts
a. can be effectively implemented in organizations that are only partially automated. b. are only appropriate for use with CIM systems. c. involve shifting from a capital-intensive to a labor-intensive process. d. require full computerization of the JIT manufacturing process.