Required subject matter Depth of understandings generation of appropriate The main reason for using an accounting package is to be able to information through various types of produce timely, accurate reports. Reports can easily be produced at any reports time. These reports can be used to help evaluate performance. interpretation of reports generated An accounting package can provide a variety of reports which can aid in by an accounting package interpretative analysis for decision making. Typical reports include: Income Statement Balance Sheet trial balance ratio analysis of financial statements analysis of aged balances for accounts receivable accounts receivable statements accounts receivable list analysis of aged balances for accounts payable accounts payable list inventory quantity and valuation report inventory price lists inventory reorder report. rollover to a new accounting period The accounts are made ready for a new month or new financial year. reversing entries Budgeting (CS 4) Required subject matter of understandings preparation of cash budgets The preparation of budgets is an important management tool and can incorporating: take many forms (e.g. sales budgets, capital expenditure). statement of estimated receipts In order to maintain adequate cash to meet commitments, it is vital that a from accounts receivable, cash budget be prepared. The cash budget forecasts the estimated excluding discounts and bad receipts, payments and cash position for a period of time. debts Businesses can be profitable but may still collapse because of lack of statement of GST payable or cash at certain points of time. Even though a business may be making a receivable, excluding discounts profit (as evidenced by the Income Statement) it does not mean that the and bad debts business has ready cash to meet its debts. both debit and credit bank The cash budget will reveal any periods of time when is excess cash balances or not enough cash. Hence the business can take appropriate steps to either invest the excess cash wisely or make provision to meet any interpret cash budget to make deficiencies of cash. decisions and/or recommendations To maintain the viability of a business, the four important reports that must be completed are: design and construction of a spreadsheet template, with input Income Statement and report areas Balance Cash Flow Statement cash budget. The Income Statement, Balance Sheet and Cash Flow Statement reveal details of past transactions. The cash budget forecasts the future cash position at certain points of time.
Required subject matter Depth of understandings generation of appropriate information through various types of reports interpretation of reports generated by an accounting package rollover to a new accounting period reversing entries The main reason for using an accounting package is to be able to produce timely, accurate reports. Reports can easily be produced at any time. These reports can be used to help evaluate performance. An accounting package can provide a variety of reports which can aid in interpretative analysis for decision making. Typical reports include: Income Statement Balance Sheet trial balance ratio analysis of financial statements analysis of aged balances for accounts receivable accounts receivable statements accounts receivable list analysis of aged balances for accounts payable accounts payable list inventory quantity and valuation report inventory price lists inventory reorder report. The accounts are made ready for a new month or new financial year. Budgeting (CS 4) Required subject matter of understandings preparation of cash budgets incorporating: statement of estimated receipts from accounts receivable, excluding discounts and bad debts statement of GST payable or receivable, excluding discounts and bad debts both debit and credit bank balances interpret cash budget to make decisions and/or recommendations design and construction of a spreadsheet template, with input and report areas The preparation of budgets is an important management tool and can take many forms (e.g. sales budgets, capital expenditure). In order to maintain adequate cash to meet commitments, it is vital that a cash budget be prepared. The cash budget forecasts the estimated receipts, payments and cash position for a period of time. Businesses can be profitable but may still collapse because of lack of cash at certain points of time. Even though a business may be making a profit (as evidenced by the Income Statement) it does not mean that the business has ready cash to meet its debts. The cash budget will reveal any periods of time when is excess cash or not enough cash. Hence the business can take appropriate steps to either invest the excess cash wisely or make provision to meet any deficiencies of cash. To maintain the viability of a business, the four important reports that must be completed are: Income Statement Balance Cash Flow Statement cash budget. The Income Statement, Balance Sheet and Cash Flow Statement reveal details of past transactions. The cash budget forecasts the future cash position at certain points of time.
snr_accounting_10_advice_understandings.docx