Advantages And Tools Of Spreadsheet For Calculation And Accounting In An Essay.

Why replace cell references with names Create a simple spreadsheet and paste Sales less Expenses = Net Profit.Why do accountants display negative numbers in brackets How can negative numbers be displayed in brackets Paste a simple spreadsheet example. Evaluate why an accountant should design spreadsheets with a completely separate data entry area and a separate report area Paste a simple spreadsheet example.

What is an 'IF' statement (function) Reference a youtube. Provide a spreadsheeted accounting example for net profit/net loss.Explain the essential differences between perpetual and periodic inventory systems. Give examples of products/situations suited to each. (Watch the 3 videos on Inventory in Interact2 Resources).

Watch the Foot Worksheet movie in Interact2 resources. Download the relevant doc file also on Interact2 resources. This doc file has a template of the example below.Examine the original data from the video. Create a new report/solution and change every data number and enhance/improve the example to prepare a ten column spreadsheeted worksheet and the Financial Reports. Change the presentation of settlement discounts so it complies with the method in chapter 5 of your text.

Do not create journal entries or ledger accounts. Ensure your trial balance still balances after your data changes. The changes should be your personal choice. So your solution will be unique.Follow the spreadsheet requirements including a separate data entry and report area and implement IF functions wherever appropriate. As usual, paste the normal view and the formula view.Write a business report evaluating spreadsheets as a tool for accounting. 

Create a well-designed spreadsheet to solve Irene's Toy Company. Make several of your own changes to the original data and create a new solution. In this second version, create prices that decline throughout the month. Paste the two solutions and one formula view. Highlight your changes. Explain the significance of the changed results.

Naming Cells in Spreadsheet

In spreadsheet, there is a tool to change the cell references by any name according to the user to make it easier and quite useful for the user. Through this naming, it becomes easy for the user to apply formula (Stratton, SAS Institute Inc., 2009). This reduces the chances of error in the calculation. This tools helps the user in auditing, managing, updating and administrating the calculations in a well manner. It also help the user to calculate all the values and accounting values easily. Below are few examples of naming cells through which naming cells in the spreadsheet could easily be understood:

Negative numbers in the accounting and financial report of a company could be shown by the accountant in the spreadsheet either in red color, with minus sign or in the brackets. Negative numbers are the credit amount. For showing the negative numbers in the reports, accountant prefers to use brackets as the brackets make the calculation easy and it makes the report attractive (Snyder and Davenport, 2013). Negative numbers are quite easy to find it too.

Report and spreadsheet is important tool for an accountant or other users to depict the right information to the reader. Accountants always make different report and spreadsheet to make the statement and describe and interpret about the report. Spreadsheet helps the accountant to calculate and make better statement quickly and the report is made for interpreting those statements (Hoque, 2002).

A separate report and spreadsheet is helpful for all the users whether they are internal user or external users to make the financial statement or interpret them in a proper manner.

 The IF function is the tool of spreadsheet which is used by the user for analyzing and calculating some logical calculations. This function is used by all the users for get some logical answers. This function helps the user to get different answers in different situation. Following is the example of IF function:

IF (Something is False, then do this, otherwise do something else).

Inventory of a company is managed by company through 2 system i.e. Perpetual and periodic inventory systems. These help the company to manage the records of inventory. Perpetual system helps the company to maintain the records at the time of transaction whereas periodic inventory system helps the company to maintain the record at the end of a specific period (Davies and Crawford, 2011). Perpetual inventory is the common inventory system.  

Negative Numbers in Accounting and Financial Reports

This report has been prepared to analyze the advantages of spreadsheet. In first step, introduction of the report has been given. More, the advantages has been discussed and than conclusion part has been given.This report has been prepared to analyze the advantages and disadvantages of spreadsheet. It offers the information to the managers to use the spreadsheet for allocating the different cost to the different department and different cost center.

Spreadsheet is software which is used by accountant or user to get accurate calculations. This spreadsheet help the accountant to bifurcate different expenses occurred in different situation (Garrison et al, 2010). Many tools and formulas are consisted in Spreadsheet to prepare the accounts and make accurate calculations.

Conclusion:

Through the report it could be said that spreadsheet become essential now days for analyzing the financial data and get accurate result.

Debts which could not be recovered by the company is known as bad debts. Bad debts could be estimated through following ways:

1. % of sales method:

This method considers the income statement. Uncollectible sales are calculated to estimate the bad debts.

Bad debts= Net sales (Total or credit)*% estimated as uncollectible This method considers the financial statement. Allowances are calculated to estimate the bad debts (Gapenski, 2008).

Bad debts= (account receivable closing balance* % estimated as uncollectible)- existing credit balance in allowances for doubtful debts+ existing debit balance in allowances for doubtful debts

Firm’s financial position could be analyzed by the accountant, internal stakeholder, external stakeholder, investors etc by considering the financial statement of the company. For analyzing the performance of the company final financial statements, ratio analysis etc has been done. Accounts receivable in also a way to analyze the financial position of company.

The analysis over account receivable helps the stakeholders into analyzing the solvency position of firm. Accounts receivable is floppy in nature so it becomes quite compulsory for stakeholders to analyze the position (Hillier, Grinblatt and Titman, 2011). Accounts receivable analysis helps the company to reduce the working capital level and thus the current cost of the company could also be reduced.

Dishonor of note receivable is a transaction where the note receivable given by the debtors to the company get dishonor and company fails to recover the amount from that note receivable (Dixon and Monk, 2009).

Analysis over ABC Company depicts that company makes 75% of its sell on credit basis and rest on cash basis. Current sale of the company is $ 10000. So credit amount is $7500. A note receivable has been given by debtors to Company and it has accepted by company and deposited into bank. In bank $4000 gets dishonored from total amount (Weygandt, Kimmel & Kieso, 2015).

Entry:

References

Bromwich, M. and Bhimani, A., (2005). Management accounting: Pathways to progress. Cima publishing.

Davies, T. and Crawford, I., (2011). Business accounting and finance. Pearson.

Dixon, A.D. and Monk, A.H., (2009). The power of finance: accounting harmonization's effect on pension provision. Journal of Economic Geography, 9(5), pp.619-639.

Gapenski, L.C., (2008). Healthcare finance: an introduction to accounting and financial management. Health Administration Press.

Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial accounting. Issues in Accounting Education, 25(4), 792-793.

Hansen, D., Mowen, M. and Guan, L., (2007). Cost management: accounting and control. Cengage Learning.

Hillier, D., Grinblatt, M. and Titman, S., (2011). Financial markets and corporate strategy. McGraw Hill.

Hoque, Z., (2002). Strategic management accounting. Spiro Press.

Snyder, H. and Davenport, E., (2013). What does it really cost? Allocating indirect costs. Asian Libraries.

Stratton, A.J., SAS Institute Inc., 2009. Systems and methods for costing reciprocal relationships. U.S. Patent 7,634,431.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons.