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Accounting Individual Assignment

The document provides an overview of accounting systems and key concepts covered in an accounting course. It discusses the basics of accounting transactions, journals, ledgers, trial balances, and financial statements. It then covers various accounting topics in more depth, including the accounting equation, adjusting and closing entries, inventory methods, accounting information systems, internal controls, depreciation, cash flow statements, and ratio analysis. The goal is to explore an organization's accounting system and identify any opportunities to improve sustainability reporting based on SDG guidelines.

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SIYAMUR RAHMAN
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230 views2 pages

Accounting Individual Assignment

The document provides an overview of accounting systems and key concepts covered in an accounting course. It discusses the basics of accounting transactions, journals, ledgers, trial balances, and financial statements. It then covers various accounting topics in more depth, including the accounting equation, adjusting and closing entries, inventory methods, accounting information systems, internal controls, depreciation, cash flow statements, and ratio analysis. The goal is to explore an organization's accounting system and identify any opportunities to improve sustainability reporting based on SDG guidelines.

Uploaded by

SIYAMUR RAHMAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction:

Accounting system as a whole is the summarization of financial statements and reports.


Throughout this major assignment things that will be explored-

• Course outcome throughout the entire semester.


• Understanding of the Accounting systems from the selected organization’s perspective.
• Exploring the scopes of improvement of Sustainable Development Growth (SDG) from the
organization’s perspective if already implemented, otherwise suggesting how it can be
implemented using the SDG guideline.

Assignment Task 1:

The basics finding of accounting systems-

• Business transaction is in the core of accounting systems. Business documents such as


sales receipt, check or bill, etc. provide evidence of the transaction.

• Journal is the bookkeeping of companies’ whole analysis of that evidence mentioned


earlier. Precisely, what effects those transactions have on specific entries and those are
expressed separately as Debit or Credit entry. Journal entry is done chronologically, and
it helps to prevent or locate errors.

• General ledger includes all balance sheet, income and expense accounts. Transferring
journal entries to the ledger accounts is called "posting."

• We add up all the accounting balance in the general ledger, that’s how trial balance is
created at the end of the accounting period. The sum of the debit balances will be equal to
the sum of the credit balances.

• Finally, financial statements are prepared from the information available in the trial
balance.

The basic terminologies related to accounting systems like Assets, Liabilities, Revenues, etc.
were represented as a chart to understand what things belong to which categories. The basic
accounting equation was introduced. Income statement, balance sheet, and cash flow
assumptions were introduced. Trial Balance might not contain up to date and complete data.
That’s why we were introduced to adjusting entries. Adjusting entry includes one income
statement account and one balance sheet account. Also, cash-basis versus accrual-basis methods
were covered. Alongside with adjusting entries, accountants perform closing entries to return the
revenue, expense, and drawing temporary account balances to zero in preparation for the new
accounting period.
Inventory classification is important depending on the merchandising or manufacturing
company. Depending on that company decides whether to choose perpetual or periodic system.
The inventory cost flow assumption states that the cost of an inventory item changes from the
time when it is acquired to the time when it is sold. Because of this cost differential, management
needs a formal system for assigning costs to inventory. That is why three methods namely
(LIFO/FIFO/Average-cost) were introduced. Next, the use of accounting information systems
was introduced. Sequentially we explored the most important aspects of accounting. That is
fraud and internal control. This brought psychological factors in the front row as well. Real-
life company scenarios were explored, and we learned what kind of internal control should be
implemented depending on the problem. Different types of Depreciation Methods are used for
cost allocation. Cash flow statements often provide better KPI’s than profit and loss statements.
It also helps with financial decision making. Also, format of the statement of cash flows was
introduced. We had to analyze Company’s performance using Ratio Analysis. These are
classified under three key indicators:

• Liquidity
• Profitability
• Solvency

Assignment Task 2:

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