Question

1.Evaluate the factors which influence the nature and structure of accounting systems

Jock Daniels has a small supermarket. He has been doing this for some years and has decided to start using computers. He has heard there are different computerized accounting systems available.

He gives you the following information:

- it must be cheap but he is willing to pay more if the system is good.

- he would like to get information about inventory.

- he would like to get information about which products are selling well and which are not.

- he would also like a system which can tell him when some things are old and should be thrown away.

- He would like a system which can order things by itself.

- Jock has workers who have a reasonable knowledge of computers.

- Jock hopes that the system will help him to do better than other shopkeepers.

From what you have heard from Jock and what you know about accounting systems, advise Jock about which would be the best option for him.

Give 3 or more reasons for your answer.

(You must use the information he gave to you and what you know about systems)

（This accounting system is either bespoke or off the shelf）

2.There is a tool (way) to manage business risk. It has four parts. Explain each of them giving examples.

way：TARA

a. T: Transfer it, give it to someone else

b. A: Accept it, live with, take the risk

c. R: Reduce it, make the chance smaller.

d. A: Avoid, run away or do not do it.

（I have written out the way and explanation, please help me to give each of them an example.thx）

Answer 1

Ans. 1

As per the information provcided by Jack, i would suggest him to use Tally ERP accounting software as it is cost effective and has all the functions would be require from small supermarket standpoint. Specially-

Inventory- You can not only record the inventory, you can issue invoices using this software and once you issued the invoice the stock of particular item would reduced automatically as per the invoice ans Sales entry would also be post into the system.

Product Comparison- You can fetch various reports about fast moving & slow moving items. If you are maintaing the data properly it would also warn you if the particular product batch has expired in the stock.

Vendor Management- It can also help Jack to automatically place the order with different vendors once the stock level reduced to the set limit of quantity.

Apart from above functionalities this accounting software could also help Jack in regulatory filling of returns like Sales Tax Return and one can also use this software in finalising the financial statements at the end of the year.

Answer 2. Examples-

For T & R - Interest Rate Swaps when issuing debt securities by a company.

When you are totally accepting the risk or totally avoiding the risk, I think there would be an imaginary example only because it depends upon case to case for outcome of risk after accepting or avoiding the same.