Paper Topic:

discussion questions wk2

Discussion Question 1 -- Week 2

The four adjusting entries entail accounting for depreciation , doubtful debts allowances , accrual and prepayments . There are four basic financial accounting assumptions behind the preparation of adjusting entries , which are going concern assumption , separate entity assumption stable monetary unit assumption and fixed time period assumption . The accounts subject to adjusting journal entries are : depreciation charge and accumulated depreciation , expenses and income , accruals and prepayments accounts and doubtful debt account

The advantages of an automated accounting system are the speed in processing accounting transactions , plus certain

tedious aspects of repetitive accounting are removed . Further more , adjusting entries can be recorded automatically provided the figures are inputted

Accounting systems however have also disadvantages , such as failure to detect errors in inputting , risk of loss of data due to hardware and /or software errors , risk of sabotage and vandalism arising from viruses and fraudulent activities may be committed by altering data or programs

Adjusting entries are an important aspect of financial accounting because they are required by accounting concepts and standards . In to portray a full picture of the financial performance , stability and position of an organization it is important that adjusting entries are properly recorded . Otherwise , certain accounts will end up overstated or understated giving an inaccurate position on the financial health of the firm

Discussion Question 2 -- Week 2

The accruals basis is the basis of accounting normally adopted by organizations . Such method is since it abides with the accruals concept of accounting...

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