Week 8 DQ s Discussion Question Week 8 DQ1 Due Week 8 Day 2 Tuesday Post your response to the following discussion question by clicking on Reply When completing the accounting cycle the accounting professional uses source documents Discuss the importance of the accuracy of these source documents What possible problems could arise if the source documents are inaccurate When completing the accounting cycle the accounting professional uses source documents Discuss the importance of the accuracy of these source documents What problems might arise if the source documents are inaccurate First one must know what a source document is A source document is hard copies of transactions They are objective evidence of a transaction and a critical step in the accounting cycle It is important this information be accurate since this information is used to analyze and classify transactions and create journal entries If these are inaccurate the rest of the accounting cycle information will be inaccurate as well These could cause problems in credit reporting gaining stockholders securing loans and even down to hiring new employees Businesses could fold with inaccurate information Other possible problems are Bounced checks Past due accounts affects credit reporting Overdrawn accounts Tax issues Corrupt planning data An example Let s say you make a deposit in your bank account of 100 00 during business hours You get a receipt showing the date of the transaction and the amount of 100 00 You plan your next few transactions on this amount You discover that the deposit was not credited to your account for 100 00 but for an amount of 10 00 How do you correct this situation Using your source document you received from the bank showing the date of your transaction and the correct amount Response 2 Source docuement s are the original records of transactions Examples of source documents include cash receipts credit card receipts cash register tapes canceled checks customer invoices supplier invoices purchase orders time cars deposit slips notes for loans and payment stubs for interest These documents are important because they document activity and are used as evidence for all businesses transactions that occur This is extremely important when there is an audit Problems that might arise if these documents are inaccurate or missing can be serious consequences To avoid these serious consequences some leading to major jail time It is important for businesses to record transactions and file the source docuement s in a safe place so that they can be obtained at a later date need be When completing the accounting cycle the accounting professional uses source documents Discuss the importance of the accuracy of these source documents What possible problems could arise if the source documents are inaccurate Source documents are written evidence of a business transaction Examples of source documents are sales receipts bank statements check register statements deposit slips or any written document that can be used to show that a certain transaction took place These can be used to verify any inaccurate information If the transaction was entered in the computer system wrong then the source document can be used to verify the actual information If these documents are entered inaccurately the accounts can be overdrawn or the accounts can become past due Another problem that could arise is the account could say that it has more money in it than it actually does It is important that the source documents are accurate to ensure that these problems to do not arise Discussion Question Week 8 DQ2 Due Week 8 Day 4 Thursday Post your response to the following discussion question by clicking on Reply This week you learned how to maintain accounting records for a service business What did you find most challenging part of the information this week Explain why What did you find to be the most challenging aspect of this information Explain This week setting up a new company did have me a little nervous In taking my time to absorb the information presented the most challenging for me was remembering which fields in the different windows needed to be completed In the Write Checks window posting the information to the correct account did have me nervous a few times Once I fully understood all these aspects and going over it a few times to make sure I understood what I needed to do I was fine In the bank reconciliation window I did almost forget to select an account in which to apply the service charge This was really from trying to breeze through this area to fast Once I slowed down and really looked carefully at the material I was fine in this area as well The text explained everything I needed to know and had no trouble completing the Exercises for this week Response 2 I found again that the book was extremely helpful with setting up the company information I did have to keep looking back to make sure I put the correct date etc on the checks and the deposits I thought the bank reconciliation was great It is so simple to use and does all the work for the user The only challenging part of the information that was covered would be to be very careful to put in the previous period when entering the balance sheet starting balances Response 3 The exercise assignments this week were long as they requires various reports such as the account reconciliation report cash account register general journal trial balance balance sheet etc Moreover the process was tedious that entails extensive procedures in order to edit enter the chart of accounts and beginning balances record and post deposits cash receipts journal and checks Cash disbursements journal and displaying the general ledger trial balance cash account register Performing the steps wasn t a challenge However learning to perform each task without having the assistance of the text is difficult as in the work environment once cannot rely upon a book to finish the job I believe with more hands on experience the procedures will be easier to perform