Financial AccountingAnswer least 300 words for each question give example DO NOT USE AI to generate answerRubric: The post demonstrates a clear understanding of subject matter through explicit...

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Financial Accounting

Answer least 300 words for each question give example DO NOT USE AI to generate answer

Rubric: The post demonstrates a clear understanding of subject matter through explicit examples of application, comparison, or analysis. APA citation is present throughout the post. The initial post is at least 300 words in length.

1 - Discussion Focus: Accounting Oversite

You have been hired to oversee the accounting for your spouse who will be in business. Your spouse has no concept of accounting except a checkbook viewpoint. First, identify the type of business your spouse will form. Next, identify and discuss the key concepts of using a double-entry system for recording transactions and how it is important to do so. Also, identify the types of accounts that are needed.


2 - Discussion Focus: Purpose of Double-Entry Framework

You have expanded your accounting business to help others. During a recent visit to a client’s business, the bookkeeper approached you with a problem. The columns of the trial balance were not equal. You helped the bookkeeper find and correct the error, but I believe you should go one step further. Identify and discuss the double-entry framework's purpose, the importance of maintaining the equality of the accounting equation, the errors that might cause an inequality, and suggestions for finding the errors.


3 - Discussion Focus: Bank Loan for Business

Your spouse is opening up a lawn care business and wants to borrow money to buy equipment for the business. A local bank has asked for financial statements. Your spouse has asked you to prepare financial statements for the year ended December 31, 20--. You have been given the unadjusted trial balance on page 175 and suspect that your spouse expects you to base your statements on this information. You are concerned, however, that some of the account balances may need to be adjusted. Identify and explain what additional information you need before you can prepare the financial statements. Your spouse is not familiar with accounting issues, you will need to explain why you need this information, the potential impact of this information on the financial statements, and the importance of making these adjustments before approaching the bank for a loan.


4 - Discussion Focus: Closing Entries

At lunch, your spouse and a colleague of your spouse got into a heated discussion about whether closing entries should be made before or after preparing the financial statements. They have come to you to resolve this issue and have agreed to accept your position. Explain the purpose of closing entries and whether they should be made before or after preparing the financial statements.


5 - Discussion Focus: Credit Error

You have been managing your spouse’s business books for a bit. Each month, the bank statement comes into the office for reconciliation. This month, you notice a deposit listed for $400 that you did not make. It has been credited in error to your account. Discuss whether you have an ethical or legal obligation to inform the bank of the error. What action should you take?


6 - Discussion Focus: Fringe Benefits

Your spouse needs to hire more staff for the firm. You tell your spouse that you must account for an additional 30% for fringe benefits. Your spouse explodes about the thought of an additional 30% in costs for fringe benefits. Identify and discuss the items that would make up these fringe benefits.


Answered 4 days AfterJan 04, 2024

Answer To: Financial AccountingAnswer least 300 words for each question give example DO NOT USE AI to generate...

Shubham answered on Jan 07 2024
13 Votes
1 - Discussion Focus: Accounting Oversite
In the accounting of the business of a spouse, it is important to determine the type of business entity that is required to be formed. It includes common business structures that include sole proprietorships, partnerships, and corporations. It has distinct implications for accounting practices, tax obligations, and liability. This requires the implementation of a double-entry system that is fun
damental for accurate financial record-keeping. It is the system that is based on the accounting equation that is Assets = Liabilities + Equity. All transactions include at least two accounts that are account debited and another credited. This ensures that the accounting equation remains balanced for providing reliable information about the financial health of the business. The key concepts of the double-entry system include debits and credits. A Debit increases assets and expenses along with decreasing liabilities and equity. Credits increase liabilities and equity by decreasing assets and expenses. It is a dual-sided approach for checks-and-balance systems that can reduce the risk of errors and fraud (Tribunella & Tribunella, 2022). The importance of a double-entry system lies in its ability to provide a comprehensive and accurate way for financial transactions. It ensures the preparation of financial statements like income statements, balance sheets, and cash flow statements. It is essential for informed decision-making, tax compliance, and attracting potential investors. This requires the implementation of the double-entry system and it includes various types of accounts are needed. It includes asset accounts, liability accounts, equity accounts, income accounts, and expense accounts. It can help in the categorization of transactions in all accounts which includes ensuring clarity and transparency in financial reporting. As the overseer of the spouse's accounting, this requires the development of an understanding of the business structure. It includes implementing the double-entry system and maintaining the necessary accounts. This requires considering critical steps towards establishing a robust financial management framework for business. It will help in understanding the current financial status.
2 - Discussion Focus: Purpose of Double-Entry Framework
In the accounting business assisting and demonstrating commitment to ensure the financial health of various enterprises. It includes trial balance discrepancies at the business of the client. It is essential to recognize of significance of the double-entry framework. It will help in understanding the importance of maintaining equality of accounting equations, identifying potential errors leading to imbalances, and offering suggestions for error detection. The double-entry system can be considered as the backbone of accounting. It includes providing a structured approach to recording financial transactions. The primary purpose requires maintaining a fundamental accounting equation for assets. The systematic approach enhances accuracy, transparency, and the ability to generate reliable financial statements. It can help in maintaining equality of accounting equation that is important for assessing the financial health of business. It includes highlighting discrepancy in trial balance columns that suggests errors in recording transactions (Renes & Garst, 2023). Errors can include various sources including mathematical mistakes, misclassifications, omissions, and fraud. This requires recognizing potential errors that might cause inequality which is essential for efficient problem-solving. It highlights common errors that lead to imbalanced trial balances including omitting transactions for recording transactions in the wrong account, miscalculating amounts, and failing to record transactions entirely. Errors in subsidiary ledgers and overlooking adjusting entries can contribute to discrepancies. In the rectification of trial balance inequalities, it is important to conduct a systematic review. It includes checking the accuracy of individual transactions to ensure that debits and credits match. This can help in confirming that entries are correctly classified. This requires the reconciliation of subsidiary ledgers for reviewing journal entries and examining adjusting entries that can further aid in identifying and rectifying errors. The...

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