Accruals and Cash Accounting Geraldine Saint Fleur XACC/290 February 8‚ 2015 Jennifer Campbell Accrual and Cash Accounting This week we learned about accrual accounting concepts. Within this chapter we covered revenue and expense recognition principle‚ adjusting entries‚ the purpose of adjusted trial balances‚ accruals‚ cash accounting‚ etc. We will be going over the accrual‚ cash accounting and cash basis accounting. Accruals/Cash Accounting The difference between accruals and cash accounting
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1 FLOWCHARTS PREPARED BY: ANUSHKA NANCOO 2 WHAT IS A FLOWCHART? Maps or graphical representations of a process Illustrates the sequence of operations to be performed to get to the solution of a problem Useful tool for communication 3 USES OF A FLOWCHART To see whether the steps of a process are logical To record the sequence of tasks in a process To uncover problems/miscommunication To define the boundaries of a process Aids in developing a common base knowledge
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Checkpoint: Accrual Method •Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? Why is accrual accounting important? Cash basis accounting‚ for example when you ship goods out of your business to customers and they have receipt but have not received the cash‚ means that you may have not booked the revenue. Accrual accounting is more accurate with the timing of reported revenue
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Accrual Method Accrual accounting is more accurate on the “timing” of reported revenue and expenses. In cash basis accounting for instance‚ when you have shipped out the goods out of your warehouse to the customer and they have receipt‚ but haven’t received the cash‚ you didn’t book the revenue. However‚ when it comes to Accrual‚ providing you satisfy the revenue recognition principles‚ you can already book the revenue. In accrual accounting you have non-cash items on the books for a particular
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|ADJUSTMENT FOR ACCRUALS AND PREPAYMENTS | |Learning outcome | |Explain the foundations of accruals and prepayments‚ including the nature of the resulting change in the income statement. | |Show the entries for accruals and prepayments in the journal‚ ledger and final accounts.
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Transition to the Accrual Accounting The transforming from cash basis accounting to accrued accounting are associated with several general issue which including factor influencing the nature and speed of the transition‚ options in respect of the transition paths‚ and the management of the transition process. The factors that may influence the nature and speed of the transition to accrual accounting which the system of government and the political environment are the major basic requirement. Beside
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Process Flowchart Process Flowchart This paper includes information about a process (University of Phoenix‚ 2010‚ Syllabus) completed daily. A flowchart represents activities in a process. A flowchart is also included in this paper. A key element of operations strategy is the activities involved in process design (Chase‚ Jacobs‚ & Aquilano‚ 2006). A metric used to measure the process and factors that affect the process are also included. Process Explanation The process included in this paper
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Assignment Flowchart for a Process University of Phoenix OPS/571 Instructor: July 22‚ 2012 • Select a process that you do every day but would like to spend less time doing‚ such as driving to work. The process to that I will use to design a process flowchart for will be driving from home to work on a daily basis. • Design a flowchart using an appropriate tool. I have used the features of Microsoft Visio to design my flowchart. Flowcharts are valuable
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Common Flowchart Symbols The process symbol represents a process‚ action‚ or function. It’s the most widely-used symbol in flowcharting. The document symbol represents the input or output of a document. Examples of input are receiving a report‚ email‚ or order. Examples of output are generating a presentation‚ memo‚ or letter. The decision symbol indicates a question to be answered—usually yes/no or true/false. The flowchart path may splinter into different branches depending on the
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Cash Basis Accounting Vs. Accruals Basis Accounting The cash basis accounting which is currently use by the government has many weaknesses which need to be addressed. The present system does not give a real reflection and real time position of the government’s financial matters. Expenditures were recorded as they were spent and paid for‚ not as they were incurred whereas revenue was recorded as it was received and not when it was earned. Assets are seldom accounted for and tracked after purchasing
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