Accounting Essay Example

You are the owner of a business as a book keeper called Easy Figures PTY LTD.

The bookkeeping business will consist of charging customers an hourly rate for your bookkeeping services depending on the time worked each day and travelling expenses between your home office and the customer’s office.

List the features that your invoice should conform to in order to comply with the principles of good form design.

  • Business name (Easy Figures PTY LTD)

  • Business address and telephone numbers

  • Invoice number

  • Customer ID

  • Bill to : Name, phone number and address

  • Description

  • Amount charged.

  • comments

List five factors that affect the control environment of an organization and give an explanation of evidence of the controls in the organization

  • Owners — they expect the managers to watch over their interests and give way for return on investment. They need to get the best from their investment and therefore have to pressurize the management to meet the required goals and objectives.

  • Employees – they have to perform their duties and represent the workforce concerns to the management. Much is required from them fro they are involved in the operations of the organization. Their behavior and actions is of great importance

  • Customers – they demand satisfaction with the products and services they purchase to consume. They cause the organization opt for the activities that will boost their relationship and also work towards making best products in the market.

  • Suppliers – demand attentive communication, payment and good working relationship so as they can continue providing the required resources.

  • Competitions – they act as catalysts of challenges as they run for the customers in the marketplace with the similar products and services.

  1. What is a feasibility study? Why is it important?

Feasibility study is an evaluation of any potential impact of a proposed program or project. This is a study conducted to help decision makers determine the impact of implementing a certain project or program. It is a study of the current practices and the proposed project and the impact if it is implemented.

The importance of feasibility study is to help decision makers make decision that will be for the best interest of the proposed project. It is done to provide data which will be widely used to base any decision and therefore it is done in a non biased manner.

  1. What are the five aspects of feasibility?

  1. the project scope- defines the business problem or the opportunity that needs to be addressed. Also it states the areas the project is going to directly or indirectly affected, participants and the end users areas impacted by the project. Finally the project sponsor is also identified in this stage.

  2. The current analysis – defines and understands the current method of implementation. The problems with the current system are discovered. The pros and the cons of the current systems are defined because there are some elements in the current system which can be used in the new project.

  3. Requirements — these are defined in accordance with the projects attention. Different projects have differing requirements.

  4. Evaluation – defined and examines the cost effectiveness of the selected approach. Analyses the estimated cost of whole project.

  5. Review – this involves all the preceding elements that substantiate the thoroughness and accuracy of the study.

  6. Approach – defines the course of action to meet the requirements

  1. Explain briefly the five phases of the systems development life cycle.

  1. Feasibility study – tries to identify the possibilities of to build the system at reasonable price

  2. System requirements – defines the systems services and goals. It constitutes heavy consulting of end users. Also states the system specifications.

  3. Design – establishes the overall system architecture and the hardware or software requirements. Designing is documented.

  4. Implementation – the actual codes are written or generated and every part verified to meet the specifications. The programs units are set

  5. Integration, Operation and maintenance – system installation and putting it into use. Errors are corrected to have an improved or an enhanced system. Program units are put together and tested.

  1. Describe the features of (PERT) Charts Project Evaluation and Review Technique.

This allows the project manager analyze and represent the tasks necessary to complete the said project in a specific time limit. The managers are assisted in identifying the minimum time needed to complete the task. On the PERT charts tasks are numbered in 10s so as to give chance for any addition of supplementary task between the originals ones, and then linked with arrows on the chart. However tasks are handled following the sequence the follow in the chart.

b) What is a Gantt chart and explain the main features of the Gantt chart.

a Gantt chart is a an information side list describing the tasks, structure codes and people responsible to carry out the tasks.

Gantt charts helps one plan out the tasks that need to be handled, give a basis for scheduling when to carry out the tasks, give an allowance to plan the allocation of resources that are required to complete the project and also help one to work out the critical path for the project whereby the deadline has to be met. It also helps to monitor whether the project is on schedule and also give an allowance to input some remedial action if it is not on schedule.

  1. As the system analyst designing and implementing a new Accounting Information System list the reasons why you conduct the acceptance testing.

  • Acceptance testing is essential for it determines whether the system meets the specifications of the contract

  • there is a need to verify the correctness of the system by reviewing the output. Incase there is anything that needs to be changed; it can be done before handing it over to the clients for user acceptance testing.

  • The test must ensure the completeness of a user story. It must be a reflection of what the client required.

  • Being an accounting information system it must out put all the required information and calculations.

  1. Give some examples of tests that you could conduct and also include some information on when the testing should be done.

  • Alpha and Beta testing – test of the operational system before it is released to the to the end users

  • Contract and regulation acceptance testing – tested against acceptance criteria as documented in the contract. It done to ensure that the legal and safety standards are met.

  • Operational acceptance testing – done to check whether process and procedures are put in place to allow the system to used and maintained.

  • User acceptance testing — this is done by the users to check whether it meets their expectations

For each of the following questions, select the answer that is most appropriate.

(i) Accounting systems is part of the information system. Its main function is to?

(d) All of the above

(ii) List three source documents commonly used in any organization

(d) invoice, receipt, time sheet

(iii) During the testing phase how is user satisfaction gauged?

(b) registration of the software

(iv) External users of information use reports to

(b) Provide information to meet the organization’s goals and objectives

(v) The transaction processing system is made of the following categories:

(b) revenue, expenditure, capital expenditure, financial accounting, tax-effect accounting

(vi) True or false?

An accounting system is part of the information system and performs two primary functions: transaction processing and supporting managerial decision-making.

(vii) When should system testing take place?

(c) at the system design stage

(viii) When should program documentation and system documentation be updated?

(b) Whenever there is a change or modification to a program or the system.

(ix) What is a Decision Table?

(a) A tabular representation of the decision logic in a program flow chart

(x) What are the techniques used for gathering facts on an existing system?

(b) Interviews, questionnaires, examination of system documentation and observation