Name: Abdul Sami Bin Halim

Roll No. : 34 (Section A)

Department: IBMS (IT)
Semester: 2nd
Subject: Financial Accounting
Submitted To: Mr Zia Ullah

MAJOR ASSIGNMENT 2021

Question No.1: Discuss accounting as

the language of business and the role
of accounting information in making
economic decisions.
Answer: Accounting: Financial
Accounting is often called the language
of business; it is the language that
managers use to communicate the firm's
financial and economic information to
external parties such as shareholders
and creditors. Nobody working in
business can afford financial illiteracy.
Whether you run your own business,
work as a manager or are just starting
your career, you want to understand
financial information and be able to
interact with accountants, controllers,
and financial managers
Role of accounting: Financial
information is needed before any
economic decision is made. Financial
accounting information focuses on
actual events. For the purpose of
decision making, the past is used as a
guide to future estimates of the
consequences of different alternatives.
The accountant can help significantly in
the areas of budgeting, investigating,
interpreting and communicating results
for use by both internal and external
decision makers.
Question No.2: What do you mean by
Event? Differentiate between
Economic Events and Non-Economic
Events with examples.
Answer: Event: An accounting event is a
transaction that an accounting entity
reports in its financial statements.
Examples of an accounting event include
the sale of goods, the purchase of raw
materials, asset depreciation, and
dividend payments to investors.
Economic Events: That brings financial
Change
Non-Economic Events: That do not have
financial impact.

Question No.3: Discuss the significance

of accounting systems in generating
reliable accounting information and
understand the five components of
internal control.
Answer: Expenses: The amount of cash
that flows out of the company in
exchange for goods or services from
another person or company are the
expenses. In older accounting software
or with a manual system such as Excel, it
is necessary to manually enter, balance,
and categorise each expense. An
automatic accounting system allows
quick entry, categorisation and
automatic balance of expenses.
Invoices: Creating a professional looking
invoice is an important part of
developing a positive brand image and
building confidence with customers.
Today, some accounting systems such as
Debit or allow for instant invoice
creation with the ability to customise
and automatically keep track of paid
invoices and income.
Funding: All the business liabilities,
whether accounts payable, bank loans
taken to support the business, or
mortgages, etc. An accounting system
keeps track of these liabilities as payable
values and automatically updates the
balances as soon a payment is made and
accounts are settled.
Five components of internal control
 Control environment
 Risk assessment
 Control activities
 Information
 Communication

Question No.4: Describe various career

opportunities in accounting as well as in
Computer Science. Moreover, also
discuss how accounting could be an
Information System for Business.
Answer: Computer scientists are critical
to the efficient running of modern
societies, dealing with health, security,
banking and finance, transportation, and
now increasingly our interaction through
social networks. The computer science
subjects will build upon your problem
solving, logical and mathematical skills
and challenge you to develop a deep
understanding of the science of
computer
When considering a new career, it’s
important to know the path you’re
taking won’t lead to a dead end. You
want to know you’ll have options and
advancement opportunities after
entering the field. The good news is that
both accounting and computer science
offer promising prospects.
Some Accounting Careers
 Staff accountant
 Accounting manager
 Tax manager
 Internal auditor
 Accounting analyst

Question No.5: Discuss the importance

of personal competence, professional
judgment and ethical behaviour on the
part of accounting professionals.
Answer: Personal competence and
professional judgment are, perhaps, the
most important factors in ensuring the
integrity of financial information.
Competence is demonstrated by one’s
education and professional certification
(CPA, CMA, CIA). Professional judgment
is important because accounting
information is often based on inexact
measurements, and assumptions are
required. Ethical behaviour refers to the
quality of accountants being motivated
to “do the right thing.

Question no.6: What is Accounting

Information System? How AIS will
enhance a business performance.
Answer: An accounting information
system (AIS) is a structure that a
business uses to collect, store, manage,
process, retrieve, and report its financial
data so it can be used by accountants,
consultants, business analysts,
managers, chief financial officers (CFOs),
auditors, regulators, and tax agencies.
AIS will enhance a business performance
The people in an AIS are the system
users. An AIS helps the different
departments within a company work
together. Professionals who may need to
use an organization's AIS include:

oAccountants
 oConsultants
oBusiness analysts
oManagers
oChief financial officers
oAuditors

Question no.7: Accounting is sometime

described as the language of business.
What is meant by this description? To
what extent businesses employ
accounting practices for better and
accurate accounting financial reports.
Answer: Accounting: Accounting is the
system of recording financial
transactions with both numbers and text
in the form of financial statements. It
provides an essential tool for billing
customers, keeping track of assets and
liabilities (debts), determining
profitability, and tracking the flow of
cash. Accounting is the language of
business. It is the system of recording,
summarizing, and analysing an economic
entity's financial transactions. Effectively
communicating this information is key to
the success of every business. Those
who rely on financial information include
internal users, such as a company's
managers and employees, and external
users, such as banks, investors,
governmental agencies, financial
analysts, and labour unions.
Accounting necessitates huge amounts
of data collection and organization of
information in a way that can easily be
interpreted by the management.
Business owners need to keep tabs on
the operating costs, changing revenues
and dividends to make strategic
decisions.
As a small business owner, it might be
tempting to manage the business
finances yourself, but financial matters
can be delicate and may require a
trained professional to handle them
correctly. Professional accountants assist
business owners in making smart fiscal
decisions while adhering to the
compliance requirements.
Question No.8: What is meant by
Generally Accepted Accounting
Principles, and do these principles add to
the integrity of financial accounting
information. Mention all principles and
conventions.
Answer: Generally accepted accounting
principles, or GAAP, are a set of rules
that encompass the details,
complexities, and legalities of business
and corporate accounting. The Financial
Accounting Standards Board (FASB) uses
GAAP as the foundation for its
comprehensive set of approved
accounting methods and practices.
Answering the second part, any GAAP
adds to the integrity of financial
information by allowing its users to
speak the same language. Investors,
banks, regulators want to be on the
same page when reading and
interpreting the numbers and making
decisions. GAAP helps to minimize the
room for any accounting shenanigans,
deliberate omission of information or
ambiguity.
It can be compared to any other system
of standards. For example, when
shopping for groceries and making your
buying decisions, you normally expect
the weight to be in kilos (or pounds, or
jins, or whatever, but the same unit is
used by all vendors), prices in local
currency and numbers in the decimal
system. Any deviation would not only
confuse the buyers, but also create
space for manipulation by dishonest
traders.

Question No.9: Explain the major 20

Accounting Software’s along with its
functionality and use in businesses.
Answer: QuickBooks Online
Functionality And Use: QuickBooks is
one of the modern, scalable, and rich
featured accounting software which
fulfils work obligations by boosting
efficiency. This software aids small and
medium scale business through various
customized plans. QuickBooks is easy to
use software that tracks, calculates,
organizes financial aspects, and making
them perfectly effective to transmit over
various departments. With QuickBooks,
it becomes easier to import transactions,
reconcile bank accounts, and know
where the money is invested.
Zero
Functionality And Use:
Zero is helpful for its remote access that
allows you to check cash flows and
transactions from any device; iPad,
desktop, PC, tablet, or phone. This small
business accounting software is
organized, magical, smart, and simple.
The software is also available as mobile
apps to help you track bank
reconciliation, send invoices, create
expense claims, and forward payments.
Fresh Books
Functionality And Use
Fresh Books comes as handy software
that makes your business running
smooth, fast, easy, and secure. This
software is among the best accounting
software for startups as it provides
automated tools to manage your business
hassle-free.
Fresh Books saves time by automating
invoice reminders and putting the
business on autopilot mode. It has
become easier to generate insightful
reports and keeping an eye on the
financials that helps in making smarter
decisions.
Sage
Functionality and use
Sage has been providing simple
accounting solutions for the past 38
years. The software is one of the best
accounting software for small business
that not only manages your data but also
keeps a track on money flow. For any
start-up, it is important to manage the
business and scrutinize new ideas
without worrying much about the
management and admin tasks. Sage
solves your issues by eliminating the
financial compliances, handling data, and
making it available as per requirement
Zoho Books
Functionality and use
Zoho Books is one of the top accounting
software that manages finances, keeps
the company GST compliant, and
automates business workflows. As your
business grows, it becomes difficult to
manage everything while focusing on
business growth. Zoho Books integrates
with other apps installed in the business
system that run every aspect of a
business. Right from negotiating business
deals, raising sales orders, generating
invoices, and accepting payments, Zoho
Books handles mundane accounting
tasks. The software helps in focusing on
business without disrupting the
workflow. Additionally, Zoho Books
creates GST invoices, files tax returns,
and helps the business to remain GST
compliant.
Odoo Accounting
functionality and use
Odoo Accounting is an online, strategic,
automatic and a beautiful concept of
recording every transaction in such a way
that you are left with ample time to focus
on business growth. Breaking all the
misconception around errors of online
accounting, Odoo Accounting brings you
an all together automated accounting
system. This is one of the most-used
accounting software for its advanced
features, real-time insights, time-saving
tools, and automated electronic
invoicing.

Wave Accounting
Functionality and use
Wave Accounting software is a free,
powerful, and smart option for
organizations that are looking to unleash
business growth. When you work hard
for your business, you look forward to
solutions that can be easily integrated
into the system and allows you to focus
on other aspects. Wave Accounting
provides you an organized and stress-free
accounting solution. The software offers
a smart dashboard that organizes your
income, expenses, payables, and
receivables. Wave uses double-entry
accounting software which largely makes
it accountant-friendly software.
Sage Intact
Functionality and use
Sage Intact is true to what it offers. This
core accounting software accelerates
your team productivity by 40%, slashes
your half-close time, and provides a
bigger picture for business growth. The
software streamlines workflow across the
account payable cycle automates
invoicing and collectibles, tracks
multiple accounts with real-time
visibility. Sage assists the business to
handle multiple entities by overcoming
the tedious conventional method of
general ledger management. It handles
multiple currencies and overcomes
geographical barriers within a few
minutes. Business with multi-
dimensional success goals gladly opts for
Sage Intacct as the business accounting
software for its multitasking abilities and
user-friendly features.
Crunch
Functionality and use
Crunch is the only business accounting
software that loves accounting as much
as you are concerned for the business.
Easy to use, pocket-friendly, expert-
support, and jargon-free; Crunch is
trusted by more than ten thousand
contractors and freelancers. One of the
best accounting software for small
businesses, Crunch is perfectly designed
for the companies established all over the
UK. The software offers customized
packages to select from, depending on
the client's requirement. It provides the
ultimate solution for sole traders,
freelancers, contractors, income workers,
LTD companies, consultants, and small
and growing businesses.
Free Agent
Functionality and use
Free Agent is award-winning accounting
software for small businesses that allows
you the mobility to run the business from
anywhere, manage expenses, pay off
invoices, check cash flows, and calculate
business tax at just one click. Portraying
a well-designed, customized, and user-
friendly dashboard, Free Agent gives you
an overview of your business. Either you
hire an accountant or chose to do it by
own self, Free Agent allows it all. The
automated accounting and bookkeeping
system builds your accounts in the
background, saves time on admins, and
allows access to all your business
financial reports with ease.
Workday
Functionality and use
Workday is a cloud-based financial
management system that brings your
accounting, consolidation, procurement,
reporting, projects, and analytics into one
single platform. This software provides
unparalleled insight into the financial
status of your company and advances
better control over the accounts
management. Workday is one of the best
accounting software available in the
market as it embraces the organizational
process without disrupting your everyday
business chores.
Kashoo
Functionality and use
Software like Kashoo and see your
business grow rapidly. If you have a
small business, then this is not a joke!
Kashoo is one of the best accounting
software for small businesses that sorts a
whole year’s worth in lesser time than it
takes for an accountant. The software
allows you a free account to check what
it has to offer. From tracking expenses,
managing cash in hand to paying your
tax, Kashoo is there to do it all!
The smart software changes the way you
run your small business by offering an
array of features. Generate automated
reports that instantly update and runs
your business, make professional-looking
invoices, and receive instant payments
and automate tracking expenses to make
your job easier
Sage 50cloud
Functionality and use
Sage 50cloud is a trusted, reliable
solution that provides easy to use
managing key for business management.
The platform is one of the best
accounting software for small business
empowers entrepreneurs to operate the
business more efficiently and
productively. This platform is trusted by
more than 3 million people worldwide
for its epic features and reliability.
This unique accounting platform focuses
more on other important aspects than
completely emphasizing on accounting.
It helps in monitoring financials and cash
flow easily keeps track of the customer’s
project, records purchases, and expenses,
optimizes sales, serializes inventory

ONE UP
Functionality and use
ONE UP is an example of one of the best
accounting software which does all the
hard work for you by setting up your
bank and synchronizing your accounts.
ONE UP is one of the fastest online
accounting software for small business
owners and accountants. ONE UP
retrieves daily bank transactions, matches
them with your choices, and pops up
options after a few days. The software
understands your behavior and validates
suggestions accordingly. This is a smart
feature that helps the users in finding
bank entries within a few seconds
without wasting much time.
Zip Books
Functionality and use
Zip Books is simple accounting software
that gives you a smarter way to record
books of accounts and maintain a
profitable business. Over the years, the
developers of.
Zip Books are bringing out the best
features to help small business in every
aspect. From managing professional level
invoices, reporting, and recording
bookkeeping, Zip Books gives you smart
insights into the business. This powerful
accounting software for small business
surpasses all the expectations that one
can have from any accounting software.
Equipped with multiple features, Zip
Books balances your work by auto-
categorizing transactions
ZarMoney
Functionality and use
ZarMoney is professional-level software
that balances your inventory and keeps
your books of accounts updated. From
invoicing, managing bills, offering
complete visibility of inventory, and
advancing payments; this software does
it all! ZarMoney, the best accounting
software for small and medium-sized
businesses, gives you instant access to
more than 40 built-in and hundreds of
customizable reports for all business
functions. Thousands of small and
medium-sized businesses are choosing
ZarMoney for its financial tools and
smart pricing solutions.
ZarMoney manages the status of sales
order, automatically notifies customers,
and provides payment terms and early
discounts

My books
Functionality and use
My Books is the best response to all the
loopholes that inherent over the past few
decades. Termed as the best accounting
software for small business, my Books
fulfills issues related to information gaps,
inaccuracies, agonizing lead times, and
overheads. Accounting software is
popular when it does not hurt the
financial condition of your business; my
Books is one of the most-used
accounting software as it is affordable,
easy to integrate, and equipped with the
right features to democratize leading
technologies.
My Books is free accounting software
that syncs all financial activities in one
place.

ART
Functionality and use
ART accounting software is among the
most used accounting software that not
only improves business ability but also
equips executives with striking insights
to business financial position. The
software utilizes algorithms to perform
reconciliation and help business
executives understand gradual changes in
the business. It provides real-time
dashboards to monitor status, exceptions,
transactional matching between data sets
to understand the company’s
development. With this exceptional
business accounting software, executives
can manage and automate a close
checklist during the financial reporting
process. ART links task activity,
documents, balance sheets to enhance the
reconciliation process.

Financial Force
Functionality and use
Financial Force Accounting is
innovative, top accounting software that
every business needs to include to
withhold complex business requirements.
This leading cloud-based accounting
software is a native to Salesforce CRM.
The software is designed to suit all types
and sizes of business, a flourishing
technological environment, and
providing the best accounting solutions.
Financial Force Accounting allows you
to view real-time profit/loss reports,
speed up bookkeeping processes,
automate data analysis, and deliver
customized interactive dashboards

Plooto
Functionality and use
Plooto is an all-in-one payment platform.
Accounts payables and receivables are
the most intricate components that every
business struggles to conquer. Delivering
best payment solutions for financial
control, unifying payments, approvals,
and reconciliation; Plooto is one of the
best accounting software that a business
can ask for! Plooto streamlines Account
receivables, global payments, account
payables, for the clients efficiently and
increases overall team productivity.
Whether it is a domestic or an
international client or vendor, Plooto
makes it easy to pay through and
reconcile with your accounting software
in one place.
Question No.10: Explain the nature and
general purpose of Financial Statements.
Answer: Nature: The financial
statements of a company reflect a
true picture of
its financial performances. They
depict not only profits and losses, but
also assets and liabilities. It is only at
the end of all accounting processes
that we can generate
these statements
General Purpose: The general purpose
of the financial statements is to provide
information about the results of
operations, financial position, and cash
flows of an organization. ... In addition, it
reveals the volume of sales, and the
nature of the various types of expenses,
depending upon how expense
information is aggregated.

Question No.11: State the structure of

Accounting Equation with different
modifications.
Answer: An Accounting Equation is a
mathematical expression which shows
that the assets and liabilities of a firm
are equal. An Accounting Equation is
based on the dual aspect concept of
accounting meaning, every transaction
has two aspects-debit and credit.
That further means in every business
transaction for every debit there is a
credit of equal amount and Vice Versa.
It means total claims (those of outsiders
and of the proprietors) will always equal
the total assets of the firm.
Assets=Equities
Liabilities=Assets-Capitals
Assets=Liabilities + capital
Capital=Assets-Capital
This is an example of investment of asset
in the business by the owner. The effect
of this transaction on the accounting
equation is that cash asset is increased
by Rs.50,000 and the proprietorship
(Riaz’s capital) is also increased by the
same amount furniture and decreases in
assets cash with the same amount. Thus
Assets = Liabilities + O.E / Capital Cash
Furniture Riaz, Capital + 50,000 = —- +
50,000 - 10,000 + 10,000 40,000 +
10,000 = 50,000.

Question No.12: What do you mean by

Assets, Liabilities, Capital, Revenues and
Expenses?
Answer: Assets: An asset is any
resource owned or controlled by a
business or an economic entity. It is
anything (tangible or intangible) that can
be used to produce positive economic
value.
Liabilities: A liability is something a
person or company owes, usually a sum
of money. ... Recorded on the right side
of the balance sheet, liabilities include
loans, accounts payable, mortgages,
deferred revenues, bonds, warranties, and
accrued expense
Capital: The capital account shows the
net worth of a business at a specific point
in time. It is also known as owner's
equity for a sole proprietorship
Revenues: Revenue is the income or
increase in net assets that an entity has
from its normal activities.
Expenses: An expense in accounting is
the money spent, or costs incurred, by a
business in their effort to generate
revenues. Essentially, accounts expenses
represent the cost of doing business; they
are the sum of all the activities that
hopefully generate a profit.
Question No.13: What is Transaction?
Explain different types of transactions in
business.
Answer: Transaction: A transaction is
a completed agreement between a
buyer and a seller to exchange
goods, services, or financial assets
Types:
Cash Transactions: They are the most
common forms of transactions, which
refer to those that are dealt with cash
Non-cash Transactions: They are
unrelated to transactions that specify if
cash’s been paid or if it will be paid in
the future.
Credit Transactions: They are deferred
cash transactions because payment is
promised and completed at a future date.
Companies often extend credit terms for
payment
Business Transactions: These are
everyday transactions that keep the
business running.
Non-business Transaction: These are
transactions that don’t involve a sale or
purchase but may involve donations and
social responsibility.

Question No.14: Explain the common

forms of Business Organizations and
their presentations of financial statements
for every business type.
Answer: Sole Proprietorship: The
simplest type of business. Sole
proprietorships are owned and operated
by a single person and are very easy to
set up.
Partnership: A business owned by two
or more people who share responsibilities
and profits.
Limited Partnership: A business
partnership, often between business
operators and investors.
Corporation: A type of fully-
independent business with shareholders.
One of the most complex business types.
Limited Liability Company (LLC): A
mixture of a partnership and a
corporation, designed to make it easier to
start small businesses. One of the most
popular business types for start-ups.
Non-Profit Organization: A type of
business that uses its profits for
charitable purposes. Tax-exempt, but
must follow special rules.
Cooperative (Co-op): A business owned
and operated for the benefit of the
members of the organization that use its
services.

Question No.15: State the different

branches of accounting.
Answer: Following are the different
branches of accounting:
 Financial Accounting
 Cost Accounting
 Auditing
 Managerial Accounting
 Accounting Information Systems
 Tax Accounting
  Forensic Accounting
 Fiduciary Accounting
 Fund Accounting
 Government Accounting

Question No.16: You are required to

solve this problem very carefully.
Answer: QuickBooks Easy to set up and
use. And unlike spread sheets, it does
the accounting automatically.
QuickBooks helps you keep track of the
money coming in and out of your
business, all in one easy-to-use place. So
you always know where you stand, and
you’re always ready for tax time. Don't
worry about losing your laptop or
important files. QuickBooks
automatically backs up your data with
bank level security so it's always safe,
and always available, from any device.
The rankings for this list were based on a
number of customers each software
product has along with recent online
reviews. We greatly appreciate any
feedback, just send us a message below.
Sage An easy-to-use business accounting
software, Sage 50 Accounting helps you
invoice customers, pay bills, manage
inventory and stay on top of banking.
Sage 50 (formerly Peachtree) brings you
best-in-class accounting standards,
secure desktop installation, unlimited
access to support, plus new subscription
plans that offer the best value for your
business. You decide when to move your
business processes to the cloud. Keep
your accounting information securely on
the desktop and expand your potential
with cloud and online apps that connect
with your software.
FreshBooks Loved by over 5 million,
FreshBooks lets you create professional
looking invoices in seconds,
automatically record expenses with ease
and track your time quickly and
efficiently so you can focus on what
matters most - serving the needs of your
clients. In January 2003, Mike
McDerment, co-founder and CEO for
FreshBooks, was running his four-person
design agency. He was using Microsoft
Word to create invoices and was pulling
out his hair because Word simply wasn't
built to create good looking invoices 22
efficiently. One day he accidentally
saved over an old invoice, and snapped –
he knew there had to be a better way.
Over the next two weeks he coded up a
solution and eventually turned that side
project into what is now FreshBooks.
Nearly a decade later and over five
million users strong, FreshBooks has
grown to be the #1 cloud accounting
specialist for small business owners.
Wave Fast, easy accounting for your
small business. Wave's accounting tools
are 100% free, secure, and accountant-
approved. Real accounting, unlimited
invoicing. The world's fastest growing
small business accounting software.
Made specifically for entrepreneurs,
freelancers, consultants and small
businesses with 9 employees or less.
And it's 100% free.
Xero Xero is designed to be the
accounting engine for your small
business, giving you real time access to
your financial data and access for your
accountant or bookkeeper for quicker,
easier collaboration at any point. Log in
online anytime, anywhere on your Mac,
PC, tablet or phone and see up-to-date
Financials. It’s small business accounting
software that’s simple, smart and
occasionally magical.
Microsoft Dynamics Microsoft Dynamics
GP gives small and midsize businesses
complete control over their finances,
inventory, and business intelligence (BI)
information within an easy-to-use and
easy-to-deploy enterprise resource
planning (ERP) software solution. Start
with what you need now, and easily
adapt as your business needs change. In
the Microsoft cloud or on your servers—
the choice is yours.
Bill.com Bill.com, the fastest-growing
business payments network with over
400,000 businesses, is disrupting the
payments space and changing the way
businesses pay, get paid, and collaborate
with their customers and vendors.
Bill.com serves customers through its
direct, accountant, and bank channels,
bringing together people, systems, and
documents to redefine how business
payments are made. Bill.com integrates
seamlessly with your accounting
software:
Account Edge Account Edge Pro helps
your small business manage your bank
accounts, balances, account numbers
and keep track of your annual budget.
The Chart of Accounts includes all the
accounts you need to track for your
small business: assets, liabilities,
equities, income and expenses. Choose
from 100 Charts of Account templates,
or create your own list of accounts to set
your business up in Account Edge. You
probably have repetitive transactions
that you need to record. Daily, weekly,
monthly, quarterly, or yearly, you can
enter these transactions one time and
then be reminded to record the
transaction before it hits your books.
The Company Data Auditor helps you to
make sure your business data is correct,
protected, and balanced. It backs up and
verifies your company file, lets you lock-
down reconciled financial data, keeps an
audit trail, and runs reviews to make
sure your numbers are in balance.
Less Accounting Less Everything, a
successful web firm for several years
began pursuing Ruby on Rails product
development in 2007. In the beginning,
they struggled with accounting, because
accounting is scary, accounting is boring
and quite simply, no one likes
accounting. So, they created Less
Accounting. Over 23 time they expanded
the app to include online invoicing, client
proposals, mileage tracking, Wesabe
integration, payables and more.
Everything about Less Accounting is
simple and useful. They hope it brings
clarity to your small business accounting
needs as it has done for them and
thousands more. Track all of your
business expenses with Less Accounting,
quickly and easily. You can put your
expenses into categories, add notes to
them, mark them as paid or due, and
even upload a picture of your receipt
with each expense.
 Eliminate redundant and time-
consuming data entry
 Eliminate human errors from manual
re-typing
 Simplify account reconciliation
 Integrate financial and business
applications on their platform Their
integration capabilities allow you to sync
payment data with your accounting
system, which will remain the record of
truth.
Kashoo transforms how small businesses
manage their finances. At its core,
Kashoo is a powerful yet affordable
online accounting solution designed
specifically for small business. With no
accounting experience, the business
owner can quickly and efficiently “do the
books” and move on to running the
business. With the help of powerful
visualization dashboards, business
owners keep on top of the numbers
impacting business, make better
strategic decisions, and proactively take
action. Financial goals are met and
disasters are avoided.
Oracle With hundreds of cross-industry
capabilities spanning enterprise resource
planning, customer relationship
management, and supply chain planning,
Oracle E-Business Suite applications help
customers manage the complexities of
global business environments. As part of
Oracle’s Applications Unlimited strategy,
Oracle E-Business Suite applications will
continue to be enhanced, thus
protecting and extending the value of
your software investment. Oracle
Financials Accounting Hub (FAH) allows
you to efficiently create detailed,
auditable, reconcilable accounting from
a variety of source systems. It includes
an accounting transformation engine
with extensive validations plus
accounting and rules repositories. The
transformation engine consistently
enforces accounting policies. The
repositories provide centralized control,
detailed audit trails, and simultaneously
accommodates diverse corporate,
management and reporting
requirements.
NetSuite is the world's most deployed
cloud Enterprise Resource Planning
(ERP) solution, with over 20,000
organizations across 100+ countries.
NetSuite ERP delivers the proven,
comprehensive financial management
capabilities required to grow a changing,
complex business. NetSuite ERP takes
your business beyond traditional
accounting software by streamlining
operations across your entire
organization and providing you with the
real-time visibility you need to make
better, faster decisions. Key Benefits
 Accelerate the order-to cash process
by 50%+
 Slash financial close by over 50%
 Drive better, faster decision-making
with real-time data and reporting, and
personalized dashboards
 Improve workforce productivity with
anytime, anywhere access 24
 Lower cost of ownership by eliminating
upfront and on-going IT expenditures,
and delivering automatic product
upgrades Accounts payable, accounts
receivable and trial balance are essential
functions of an accounting information
system. Cost and complexity can vary
greatly. Accounting Software is used by
businesses to help automate and
manage payroll, purchase orders and
more. The Accounting Software industry
is now a multi-billion dollar industry with
hundreds of competitive solutions
available, here are the 20 best.
Free Agent launched in 2007, from the
frustration that managing company
finances was just too damn hard for
most small businesses and freelancers.
Since then they’ve doggedly stuck to
their mantra of demystifying accounting
and redefining the relationship people
have with their finances. Discover a
stress-free way to manage your business
books. Say hello to Free Agent - award-
winning cloud accounting for freelancers
and small businesses.
Yendo Business is a new type of online
CRM and Accounting software for small
business. You can create your own
management accounts with ease, giving
you a perfect snapshot of your
company's monthly performance. Yendo
Accounting takes the hassle out of
managing your sales and lets you keep
on top of invoicing, just key in invoices
and send them instantly by email via
Yendo. If you're owed money, Yendo can
tell you how much, how long ago and by
whom.
Traverse delivers the tools you need to
drive your business. Traverse ERP
software has been tailored to give you
complete insight into all of your business
processes. With Traverse you get
seamless system integration across the
Traverse application suite, while also
integrating data with other databases
and applications, such as third-party
applications or websites. Regardless of
your industry, you can adjust Traverse to
suit the needs of your business, right
down to personalizing it for each
employee. Instead of forcing you to
change your business processes to fit the
software, Traverse is flexible enough to
adapt to the way you do business.
SAP provides the right foundation for
your accounting and reporting teams.
Their financial accounting solution
unifies robust financial accounting
functionalities to help you manage the
complexities of your company's global
accounting and reporting requirements –
for greater efficiency and transparency
across the enterprise.
 Record all your financial processes into
a comprehensive general ledger
 Support multidimensional reporting
and parallel accounting standards
 Get complete financial accounting by
integrating assets, payables, receivables,
and inventory
 Use powerful management accounting
tools for orders, projects, cost centers,
and profit centers
 Leverage comprehensive functionality
for closing automation, reporting, and
audit support #17 Red Wing Software
Red Wing Software develops and
distributes accounting and payroll
software for small to mid-sized
businesses, agribusinesses, municipals
and non-profits in North America.
CenterPoint Accounting has 25 many
convenient, time–saving features such as
pop–up reminders, quick lists, keyboard
commands for “heads–down” data
entry, and the ability to skip fields to
speed up entry. Red Wing Software
offers Customer Care Plans with
guaranteed response times, so you get
questions answered quickly. They never
outsource your questions to an offshore
call centre. 100% of Red Wing Software
product enhancements are based on
customer requests and suggestions.
They also offer a variety of training
options including classroom, web
training, or you can choose to have a
consultant come to your site to help
with training and/or implementation.
Intacct is a cloud financial management
company. Intacct accounting software, in
use by more than 7,300 organizations
from start-ups to public companies, is
designed to improve company
performance and make finance more
productive. Hundreds of leading CPA
firms and Value Added Resellers also
offer Intacct to their clients. The Intacct
system includes accounting, contract
management, revenue management,
project and fund accounting, inventory
management, purchasing, vendor
management, financial consolidation
and financial reporting applications, all
delivered over the internet via cloud
computing.
CYMA Accounting Software provides the
perfect accounting software solution for
growing mid-sized businesses through
flexible user environments, a full suite of
useful accounting software modules,
robust reporting, industry leading
security, and advanced customization
options. A wealth of additional modules
and third party integrations makes
CYMA accounting software the perfect
mid-size accounting software solution.
 Account Mate Founded in 1984,
Account Mate develops and markets
fully modifiable business accounting
software. Systems range from single user
versions to those that support hundreds
of users simultaneously. Account Mate
software is available for local installation
or as SaaS. It is distributed exclusively
through a worldwide channel of
authorized solution providers.

Question No.18: Compute the missing

figures for Retained Earnings.
Answer: The income statement for the
calendar year 2020 will explain a portion
of the change in the owner's equity
between the balance sheets of
December 31, 2019 and December 31,
2020. The other items that account for
the change in owner's equity are the
owner's investments into the sole
proprietorship and the owner's draws
(or withdrawals). A recap of these
changes is the statement of changes in
owner's equity. Here is a statement of
changes in owner's equity for the year
2020 assuming that the Accounting
Software Co. had only the eight
transactions that we covered earlier.
Example of Calculating a Missing
Amount The format of the statement of
changes in owner's equity can be used to
determine an unknown component. For
example, if the net income for the year
2020 is unknown, but you know the
amount of the draws and the beginning
and ending balances of owner's equity,
you can calculate the net income. (This
might be necessary if a company does
not have complete records of its
revenues and expenses.) Let's
demonstrate this by using some new
hypothetical amounts:
Step 1. The owner's equity at December
31, 2019 can be computed using the
accounting equation:
 Step 2. The owner's equity at December
31, 2020 can be computed as well:
Step 3. Insert into the statement of
changes in owner's equity the
information that was given and the
amounts calculated in Step 1 and Step 2
Step 4. The "Subtotal" can be calculated
by adding the last two numbers on the
statement: $94,000 + $40,000 =
$134,000. After this calculation we have:
Step 5. Starting at the top of the
statement we know that the owner's
equity before the start of 2020 was
$60,000 and in 2020 the owner invested
an additional $10,000. As a result we
have $70,000 before considering the
amount of Net Income. We also know
that after the amount of Net Income is
added, the Subtotal has to be $134,000
(the Subtotal calculated in Step 4). The
Net Income is the difference between
$70,000 and $134,000. Net income must
have been $64,000.
Step 6. Insert the previously missing
amount (in this case it is the $64,000 of
net income) into the statement of
changes in owner's equity and recheck
the math: Since the statement is
mathematically correct, we are
confident that the net income was
$64,000. You can reinforce what you
have learned by using our Quiz for the
Accounting Equation and our Crossword
Puzzle on the Accounting Equation. The
remaining parts of this topic will
illustrate similar transactions and their
effect on the accounting equation when
the company is a corporation instead of
a sole proprietorship.

Question No.19: Compute the amount

of cash as per the instructions.
Answer: As a Business User or
Supervisor User with the appropriate
permissions, you can use Creation
Online to create, create upload, view,
duplicate, modify, verify, fail verify, undo
verify and cancel Pre-advice of Funds,
Withdrawal of Funds, Customer Transfer
and Foreign Exchange cash instructions
up to and including release (that is,
being sent for settlement). You can also
display the pre-release status history of
cash instructions. When the instruction
has Accepted status and is effectively
released for settlement, you can still
request cancellation of the instruction.
When the instruction has been released
for settlement, it can, if required, be
further progressed as a post release
instruction. A query operation can yield
very high numbers of results and
Creation Online will present 50 results
per page up to a maximum of 20 pages.
Each page carries count and time
information at the right-hand end of the
menu bar.
Question No.20: For each account
indicate the increase or decrease.

Answer: In summary: An increase (+)

to an asset account is a debit and an
increase (+) to a liability account is a
credit; conversely, a decrease (-) to an
asset account is a credit and a
decrease (-) to a liability account is a
debit.