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    Assignment-1 Navjot Singh A00143717 BUS120

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    Deepanshu SHarma

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    Assignment-1 Navjot Singh A00143717 BUS120

    Uploaded by

    Deepanshu SHarma
    7 views10 pages

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views10 pages

    Assignment-1 Navjot Singh A00143717 BUS120

    Uploaded by

    Deepanshu SHarma

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    ASSIGNMENT-1

    BUS120- COMPUTER APPS FOR BUSINESS II

    (Gaganpreet Dhillon)

    Navjot Singh

    A00143717

    June 12, 2023

    Answer-1

    In order to keep correct financial records for any firm, it is crucial to record unpaid
    invoices or bills. There are numerous actions that can be taken in order to accurately
    report unpaid bills. Create an accounts receivable ledger specifically for the purpose of
    recording all pertinent data related to the invoices. Name of the client, invoice number,
    date of issuance, due date, and balance due are all included in this.
    The accounts receivable ledger should then be updated on a regular basis to reflect any
    new invoices issued or payments received. Make sure the ledger is arranged
    systematically so that information can be tracked down and retrieved with ease.
    Spreadsheet programs or accounting software can be used to speed up the procedure and
    keep accuracy.
    Furthermore, it is essential to send reminders and polite requests for payment to
    consumers who owe you money on a frequent basis. These notifications can be delivered
    by automated systems, email, or letter.

    Last but not least, keep an organized system in place for classifying past-due invoices
    according to their age, such as current, 30 days overdue, 60 days overdue, etc. This
    makes good follow-up possible and makes it easier to spot potential cash flow problems.

    Businesses may check their accounts receivable, effectively manage cash flow, and
    assure prompt collections by meticulously recording overdue invoices and bills, so
    ensuring financial stability.
    2

    Answer-2

    Both of Intuit's widely used accounting software alternatives, QuickBooks Online and
    QuickBooks Desktop, have their own pros and considerations.

    Comparing QuickBooks Desktop to QuickBooks Online, there are various benefits. First
    off, because it is cloud-based, it offers flexibility and convenience by enabling remote
    access from any device with an internet connection. This facilitates mobile data access
    and remote team collaboration. Additionally, QuickBooks Online provides automatic
    software updates and backups, doing away with the necessity for manual setups and
    backups.

    Additionally, QuickBooks Online offers real-time data synchronization, enabling several


    users to work at once and access the most recent financial data. Additionally, a variety of
    third-party app connectors are available, adding functionality and customizability.

    QuickBooks Desktop, on the other hand, has its own benefits. Compared to QuickBooks
    Online, it offers more sophisticated functionality and powerful reporting capabilities.
    Desktop versions can handle larger data files more effectively and have more capabilities
    specialized to the business. It is appropriate for sophisticated accounting requirements
    because it also provides more data control and customization choices.

    Additionally, QuickBooks Desktop doesn't need to be connected to the internet


    constantly, providing constant access to financial data. Additionally, some companies
    favour QuickBooks Desktop's one-time purchase strategy over QuickBooks Online's
    subscription-based business model.

    The decision between QuickBooks Online and QuickBooks Desktop ultimately comes
    down to the particular requirements and preferences of the business. While QuickBooks
    Desktop offers extensive functionality, customization possibilities, and offline
    accessibility, QuickBooks Online is best for businesses looking for mobility,
    collaboration, and frequent updates.
    3

    Answer-3

    The Generally Accepted Accounting Principles (GAAP) must be followed for a number of
    reasons. First off, GAAP assures that financial reporting is consistent and comparable.
    Businesses may deliver accurate and trustworthy financial data that is simple for investors,
    creditors, and other stakeholders to understand and compare by adhering to a defined set of
    accounting rules. This encourages transparency and aids decision-making by stakeholders.

    Second, GAAP strengthens the legitimacy and dependability of financial accounts. The danger of
    fraudulent acts is decreased with the consistent use of GAAP principles, which help avoid
    financial data modification or misrepresentation. As a result, there is more confidence in the
    financial accounts, which is necessary to draw in investors, get loans, and uphold goodwill with
    stakeholders.

    Adherence to GAAP also makes it easier to meet regulatory requirements. For financial
    reporting, many nations require that GAAP or local equivalents be used. Businesses can stay out
    of trouble legally and ethically by adhering to GAAP and ensuring compliance with legislative
    and regulatory requirements.

    Overall, adherence to GAAP encourages comparability, reliability, openness, and compliance,


    which fosters trust and makes it easier to make informed financial decisions.

    Answer-4

    Creating a Company Profile in QuickBooks:

    Step 1: Launch QuickBooks and after Signup. Click “Next”.


    4

    Step 2: Enter your company name, address, contact information, and other relevant details.
    5
    6

    Step 7: Review and finalize the company profile.

    The Alpha is a Rim-Manufacturing Company

    Creating a Chart of Accounts in QuickBooks:

    Step 1: Open QuickBooks and navigate to the Chart of Accounts section.


    7

    Step 2: Click on "New" or "Add Account" to create a new account.

    Step 3: Select the account type (e.g., expense, income, asset, liability, equity) based on your
    business needs.
    8

    Step 4: Specify the account name, description, and other relevant details.

    Step 5: Assign an account number if desired (optional).


    9

    Step 6: Set up subaccounts or subcategories if needed.

    Step 7: Save the account and repeat the process for additional accounts until you have a
    minimum of 10.

    Here are charts of accounts we created.

    Here are transactions I added.

    Answer-5
    10

    Accrual Accounting: From what I've studied, accrual accounting tracks earnings and costs as
    they occur, even if there haven't been any monetary transactions. This approach offers a more
    realistic picture of a business's financial status.

    Matching Principle: According to the matching principle, costs must be recorded in the same
    time as the revenue they contributed to. This rule makes sure that the revenue-generating costs
    are properly shown in financial statements.

    Functions of QuickBooks: I've learned that QuickBooks has a number of practical functions, like
    automatic bank feeds that load transactions into the program. Additionally, it offers adaptable
    reports that assist companies in monitoring their financial performance and making wise choices.
    These features can improve efficiency and streamline accounting procedures.

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