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ACC 205 Week 5 Assignment

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Accounting

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All About Accounting
ACC 205 Week 5 Assignment
Over the years modern accounting systems have changed for the better
and the worse as well. The topic I picked to write of is, how have modern
account systems made a difference in modern organizations? Before
taking this course I was unsure of how accounting was used in
businesses or the way it was formatted. I learned so much from taking
this course as how to analysis transactions and use these format
correctly. I have made Excel spreadsheets in other courses and for my
personal use but they do not compare the assignment in this course. I
have learned how to successful create balance sheets, income
statements, and so much more. Lastly, I have learned the correctly in
order to create successful and understandable business financial
statement.
The smallest corner store or largest multimillion organizations created
their own innovations on which they believe to be the best account
perspectives. They were successful for a short time by applying new
cost such as JIT systems to improving the cost systems. Their
sociological perspective can be understood as a point of view that
focuses not only on individuals in a company but on the whole group or
society, unfortunately many flaws and late technology slowed their
progress down. Many flaws that could have been improved with their
value of modern management accounts systems.
The main change has been the amount of money spent by
organizations. In the past, companies big or small needed a dozen
accounting clerks in order to prepare all documents manually, and of
course this was time consuming which generated large wage payout.
Today, companies big and small use modern computerized software on
computers which can perform a more accurate detail submission which
only requires a small group of people if not one or two people performing
the accounting.
Also, another factor to consider when speaking of modern account
systems is perpetual inventory systems (PTS). This controls the
inventory in all stores and main warehouse by single scans. The scans

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come from the cashier ringing the merchandise which is automatically
added to the order sheets. Larger companies such as Wal-Mart and
Target provided the sales floor employees with handheld computers that
track in store stock as well as inventory controls. These moderns’
scanners control the operations of the company, as employees work
products to sales floor each item is scanned and tracked, then ordered
automatically if needed.
While working at Wal-Mart, each employee was required to carry at least
one per department. The handheld was the kiosk for the entire store. If
provided inventory controls, counting and ordering methods. As well as
accounts processes that would allow the employee to create worksheets
to log in numbers and as well as operating cost. These handhelds are
costly and very power as a desktop computer, which makes them useful
and most improved modern accounts systems to date.
In addition to technology updated to improve accounts systems, the
funds of companies have also been updated by the modern changes in
organizations. The way information is processed and how quickly it can
be changed or updated has improved business transactions. Financial
information is available to organizations faster and easier by simply
typing the needed data. The company is able to understand they
information faster and easier without having to search through many
book records and years. These modern accounts systems and the faster
data have improved cost and payroll, such as how fast employees can
be paid.
The modern account systems also have many flaws as it did in the past.
Even though our amount of time and labor spent has been reduced by
using electronics doesn't mean errors still do not exist. Because the
information is delivered much faster, the lack of understanding how to
use the information has been ignored. The fast growing technology has
not been taught property by large organizations because it is growing
too fast for employees and employers to keep up with. The old way of
using account systems was slow, but the lacks of errors were slim
because they thoroughly understand the inner workings of how their
systems worked. Both human and electronic input controls how errors
are a factor in new accounting systems compared to older systems
where each documents was hand written and checked by humans only.

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Chapter 1 provided a lot of insight for myself while regarding accounts
systems. From speaking to individuals to taxing authorities and in-
between was a good reference for myself. When dealing with business
transactions many different factors are used. The below example is from
(Horngren, Harrison, p 16)
| Cash | Accounts receivable | Officesupplies | Land | Liabilities |
Owner’sequity | Type ofOwner’s Equitytransactions |
Balance | 21,900 | 2000 | 500 | | 200 | 35,200 | |
(11) | -2,000 | | | | | -2,000 | Owner withdrawal |
Balance | 19,9000 | 2000 | 500 | | 200 | 33,200 | |
| | | | | | | |
Such as transactions 1: starting the business, this is very important as it
shows owner investment which can increase or decrease assets.
Transaction 2 purchases of land or rental agreements, which also adds
assets, equity and liabilities to the statement. Transaction 3 purchases of
office supplies, which is important for the well-being of the business, this
increases the liabilities, accounts payable transactions. Transaction 4
earning of service revenue, this adds value to owner’s equity, and
capital. Transaction 5 earning of service revenue on account which this
adds value to the owner’s equity. Transaction 6 payment of expenses,
this can be transactions such as employee salaries, utilities and rent,
which subtracts from the owner’s equity. Transaction 7 payment of
accounts which is payments or rental payments, this also subtracts
funds from cash and liabilities. The transaction is 8 personal
transactions. Transactions 9 collection on accounts which is labeled as
accounts receivable which paid from clients for work performed.
Transactions 10 are the sale of land, which subtracted from the land
category. Finally transaction 11: withdrawal of cash, this is when the
owner withdraws cash from the account for personal use only.
Over the last 5 weeks, I have learned so much valuable information that
will help me improve my work skills when I enter a job and my personal
use. Over the upcoming years, technology will change and improve even
more than it has to allow us to access accounting systems quicker and
easier. Since this class I have learned how to prepare documents and
financial statements. This course has also improved my current situation,

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