Question

Post your response and recommendations in a well thought out manner. Provide reasons to explain your position on the issue.

Your response should demonstrate thoughtful consideration of the ideas and concepts that are presented in the discussion and provide new thoughts and insights directly related to the topic. Your response should reflect scholarly writing and follow current APA standards.

Discussion Questions and Critical Thinking/Ethical Case

1.

What are the functions of accounting?

2.

Define, compare, and contrast sole proprietorships, partnerships, and corporations.

3.

How are businesses classified?

4.

How has technology affected the role of the bookkeeper?

5.

List the three elements of the basic accounting equation.

6.

Define capital.

7.

The total of the left-hand side of the accounting equation must equal the total of the right-hand side. True or false? Please explain.

8.

A balance sheet tells a company where it is going and how well it performs. True or false? Please explain.

9.

Revenue is an asset. True or false? Please explain.

10.

Owner’s equity is subdivided into what categories?

11.

A withdrawal is a business expense. True or false? Please explain.

12.

As expenses increase they cause owner’s equity to increase. Defend or reject.

13.

What does an income statement show?

14.

The statement of owner’s equity only calculates ending withdrawals. True or false? Please explain.

15.

Paul Kloss, an accountant for Lowe & Co., traveled to New York on company business. His total expenses came to $350. Paul felt that because the trip extended over the weekend he would “pad” his expense account with an additional $100 of expenses. After all, weekends represent his own time, not the company’s. What would you do? Write your specific recommendations to Paul.

Answer 1

Post rest questions seperately.

What are the functions of accounting?

Accounting is basically concerned with recording of the business transactions, designing the types of records to be maintained, preparing the reports on the basis of those recorded data and transactions and interpreting those reports.Finally, Accounting is concerned with Communication of the results of the recorded transactions in the form of Final Accounts consisting of the Profit and Loss Account with different sections and the Balance Sheet with a number of reports and statements affixed at the end.Thus, the following are the main functions of Accounting:
1.Record Keeping: Accounting is to maintain systematic and chronological record of financial transactions and to post them subsequently to the various Ledger Accounts and finally to prepare the Final Accounts to find out the profit or loss of the business at the end of the Accounting Period.
2.Protecting of Properties: Accounting is to calculate the correct amount of Depreciation on Assets by choosing the appropriate Method applicable to any particular assets. any unauthorized dissipation of any asset will bring the business to the threshold of insolvency.Accounting is to design a desirable system to protect the properties and assets of the business from unauthorized and unwarranted use.
3.Communication of Results: Accounting is always to communicate the results of the recorded and transactions to the different parties who are interested in the particular business, i.e., properties, investors, creditors, employees, Govt.official and researchers etc.
4.Meeting Legal Requirements: Accounting is to devise and develop such a system of keeping record and reporting the results as will always meet and legal requirements to enable the proprietor or the authority to file various statements like Income-Tax Returns, Sales-Tax Returns etc.

Define, compare, and contrast sole proprietorships, partnerships, and corporations.

A business can be structured into several basic forms. The simplest, the sole proprietorship, has one owner who pays personal income tax on profits and is personally responsible for any liabilities. In a partnership, two or more owners share profits or losses.

Unlike corporations, partnerships don't incur taxes on profits before they are distributed to partners. A disadvantage of partnerships is that they can expose the owners to personal liability.

A corporation is a legal entity distinct from its owners, limiting the owners' personal liability. Through stock, corporations provide a readily transferable means of ownership. Corporations have a tax disadvantage, as the corporation itself is taxed on its profits, which are then taxed again when stockholders receive income in the form of dividends.

How are businesses classified?

Business organizations can be classified in a variety of ways depending on its

• size,
• sector,
• legal status etc.These classifications differ from one firm from another. Legal status has an important bearing on the environment in which the business operates. It is important to have a comprehensive knowledge of the advantages and disadvantages of the several legal forms so that managers and directors can decide which legal form their firm should adopt. The sole trader is the simplest business to develop and has very little legal formalities, obligations or constraints. A sole trader or sole proprietor is one who individually runs business with personal funds. Remaining as a sole trader has many advantages, mainly being that you are able to give a more personal service to your customers and you are able to make changes within your business very quickly due to there is little or no bureaucracy there being only one person to make the final decision. Other advantages include having complete control over the business and its profits.

How has technology affected the role of the bookkeeper?

Technology has become a vital component of the accounting and bookkeeping industry.Today’s technological advances have surpassed the thought of outdated financials, lack of real-time data, remote control sessions, and even basic desktop-based software. This innovation has occurred to the extent that it has left our offices here at Bookkeeper360 desolate of even a single file cabinet.

The ability to leverage the latest in cloud-based technology through platforms has completely transformed the firms and even the entire accounting and bookkeeping industry. For example, it has changed the way that business-to-business on-site consultations function, since frequent visits were often implied as a means of connection between client and bookkeeper.