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Diploma In Accounting Assignment Help
Plagiarism is a kind of theft that occurs when a writer copies another author’s language or ideas and then claims the work as his original creation.
Generally the students who are looking for good academic grade without giving the necessary effort often choose the short-cut way of copying other persons’ work and claim it as their own to get academic advantage (Leo, & Day, 2002).Thus plagiarism is unfair for hardworking honest students who are putting the real effort for learning something but will be fail to get the right judgment when they will be compared with a student who has applied plagiarism in his work. Thus an academic institution should carefully identify the fraudulent student so that the academic reward goes to real hard working students
1. Website: Institute of Management Accountants
2. Website: The Institute of Internal Auditors
3. Website: Association of Accounting Technicians Australia
4. Website: The American Accounting Association
Website: Association of Accounting Technicians Australia
The “Event & Education “and the “Member Resource” sections of this website contain different information that are very important for the accountants. The “Event & Education” section holds the schedules for seminars and webinars that holds discussion on latest financial& accounting updates and the “Member Resource” section contain news, magazines on latest financial topics and revision of accounting standards (Leo, & Day, 2002).
As a fresher account professional I plan to work in a small business and to gather experience to become an experienced accountant. I prefer that my future workplace should use MYOB basic as accounting software as it very easy software that can be used by the entry level users (IIA, 2017). Not only that this accounting software is also suitable for small and service-based business enterprises or micro businesses. More over the MYOB accounting system can be run by a person who have very little or no knowledge of accounting. This online accounting system is capable to handle very basic accounting operations efficiently. The system will automatically post the transactions to the relevant accounts for a user and will automatically generate the Trail balance, Balance Sheet and Income Statements.
Brief summary of the key lessons from the ABC Learning Case Study
The company ABC Developmental Learning Center was established in 1988 in Ash grove, Brisbane, Queensland. The company took a rapid expansion activity and owned 43 childcare centers by 30 June 2001 (Horngren, 2013). The company became the owner of 697 “Early Childhood Education centers” throughout Australia and New Zealand during November 2005.However the company went in to voluntary liquidation in 2008 due to massive loss and were being bought by Goodstart Limited in December 2009.
Any failure to recognize the net revenue earning may lead a company towards improper decision making and ultimate collapse. In case of ABC learning it can be seen that the company failed to properly recognize their revenue earning and continued to make aggressive expansion activities through buying child care centers in foreign locations that badly affected the profit generation activity of the company (Horngren, 2013).
A company should always focus on their core business activities to strengthen their financial health especially when the company is planning for expansion that demands a healthy cash inflow. ABC-learning failed to give a proper focus on their core business activities during the expansion phase. As a result the company realized a massive cash crunch in April, 2008 and was forced to sell 60% of their US-child care portfolio at $700m million. This marked the beginning of collapse of the company
Any failure in proper assessment of the published financial accounts of the company may lead to improper decision making by both the company management as well share holders of the company. In case of ABC-learning the inflated share price describes the fake confidence of the share holders who not even bothered to examine the published accounts of the company before making the idea that ABC-Learning will continue to earn more and more profit in near future. But in reality the company actually collapsed within few years of earning the extreme success.
Proper practice of corporate governance is essential for the successful running of a company. The management of ABC- learning followed improper methods while sourcing investments and holding party transactions. This activity is one of the measure cause of final collapse of the company
A company should posses a simple and comprehensive financial structure and transaction method. The company ABC-Learning had a very complicated financial structure and transaction method. As a result the investors of the company failed to properly assess the financial health of the company and also failed to make proper decision.
The major financial reports and their purpose
Balance sheet, cash flow statement and profit and loss statement, fund-flow statement are the most basic and major financial reports of a company. The balance sheet gives a snapshot idea regarding what the company owns and what the company owes at a particular date. The profit & loss statement gives a summary of revenues, costs and expenses that are incurred by a company during a specific period of time (Hoggett, Edwards, & Medlin, 2003). The cash-flow statement defines the cash inflows and outflows that have taken place in the company through different transactions. The fund flow-statement identifies those sources where from the fund has been derived and the sources wherethe funds has been utilized
Importance of profit and importance of cash flow in ABC
The positive difference between operating cash inflow and cash outflow generates the profit of a business. Thus a business that is earning profit should earn positive cash flow. Any mismatch between them indicates a problem in the business. For ABC learning in 2007 the profit was $37.1 million whereas the operating cash flow was $(-19.8) million. This indicated that the liquid cash as well as profit of the company is not substantial for repayment of debts of the company (Hoggett, Edwards, & Medlin, 2003).
Ethical issues with respect to case study regarding the collapse of ABC learning
Complex accounting Method
The company violated the norms of maintaining a simple accounting method and that forced the auditors to place a faulty positive image in front of company stake holders
The company did not maintain their transparency while doing party transactions and did not revealed party transactions reports after 2006.
Ignoring of financial statements:
The management of ABC-Learning deviated from ethical norms as they ignored the inflated cost and negative cash flow reports and continue to carry on their expansion activity to hold their brand image as the largest child care company of the world (Hoggett, Edwards, & Medlin, 2003).
Income Statement as at 31st Dec 2016
Balance Sheet as at 31st Dec 2016
The accounts which have debit and credit balances are as follows:
Debtors a/c dr
To Bad Debts a/c
To Interest Expense Payable cr
Rent ac dr.
To Prepaid Rent cr
To Provision for depreciation
Non-current assets are held for a period of more than 1 year such as goodwill, patent, land and building whereas current assets are held for a period shorter than a year such as cash, prepaid expenses, stock, cash equivalents (Davy, & Bruce, 2008).
The strength of the organization to cover its current liabilities with the help of the current assets is indicated by the current ratio.
Current Assets/Current Liabilities= 2500/1500=1.67
The debt proportion of the organization is indicated by the debt ratio.
Debt/Equity= 2300/1000= 2.3
Statement of profit and loss
Davy, C., & Bruce, D. (2008). Management accounting in Australia (1st ed.). Bondi, NSW: National Core Accounting Publications.
Hoggett, J., Edwards, L., & Medlin, J. (2003). Accounting in Australia (1st ed.). Milton, Qld.: John Wiley & Sons Australia.
Hoggett, J., Edwards, L., & Medlin, J. (2003). Financial accounting in Australia (1st ed.). Milton, Qld.: John Wiley & Sons Australia.
Horngren, C. (2013). Accounting (1st ed.). Frenchs Forest, N.S.W.: Pearson Australia.
IIA,. (2017). The Institute of Internal Auditors. Na.theiia.org. Retrieved 29 March 2017, from https://na.theiia.org/Pages/IIAHome.aspx
Leo, K., & Day, R. (2002). Company accounting in Australia (1st ed.). Milton, Qld.: John Wiley & Sons.