4 For quick decision making improved Business Performance Computerized

4 for quick decision making improved business

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4. For quick decision making & improved Business Performance : Computerized accounting is a highly integrated application that transforms the business processes with its performance enhancing features which encompass accounting, inventory, reporting and statutory processes . This helps the company access information faster, and takes quicker decisions. Computerized accounting also guarantees real-time optimization of operations and enhanced communication. It generates real-
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time, comprehensive MIS reports and ensures access to complete and critical information, instantly. 3 Describe 5 key features all organisations should employ in relation to managing and using a computerised accounting system The main characteristics that all organizations must employ in relation to the management and use of a computerized accounting system is: Screen-In and Print Sales Invoice Automatic updating of customer accounts in the sales ledger. Register of supplier invoices. Automatic updating of vendor accounts in the purchasing ledger. Registration of bank receipts. Make payments and expenses Automatic updating of the general ledger Automatic adjustment of stock records Integration of a business database with the accounting program Automatic Payroll and Associated Entries
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4 W hat is the difference between single and double entry accounting? One of the main difference between single entry system and double entry system is the type of record that is captured in the books of accounts and the method through which it is captured. In a single entry system, only single entry is recorded which can be either debit or credit transaction. On the other hand, double entry system has a double recording method in each transaction. This means that for every debit record there is a corresponding credit entry and vice versa. A debit and a credit entry are recorded for any transaction that happens in the enterprise. 5 List the 5 types of accounts which underpin double entry bookkeeping 1. Assets 2. Liabilities 3. Income 4. Expenses 5. Capital gains 6 Which of the following examples would Total Assets remain unchanged? a) An accounts receivable is collected from the debtor (X) b) An account payable is paid to the creditor c) Depreciation expenses are recorded d) All of the above (x) e) None of the above 7 Pedro's Pasta pays a $600 debt it owes to a suppler. Referring to double entry accounting, what are the two effects of action? Show how you would record the transaction in the ledger. DR CR Accounts Payable (Liabilities) 600 Bank (Assets) 600
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8 Pedro's Pasta pays a their storekeeper a wage of $1000 per week. Referring to double entry accounting, what are the two effects of action? Show how you would record the transaction in the ledger. DR CR Wage (Expenses) 1.000 Bank (Assets) 1.000 9 Pedro's Pasta purchases a car for $8,800 using a loan from the bank suppler. Referring to double entry accounting, what are the two effects of action? Show how you would record the transaction in the ledger.
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DR CR Car (Assets) 8.800 Bank (Assets) 8.800 10
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  • Spring '20
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