C2 - Accounting Function Flashcards
What is a public sector organisation?
Owned or controlled by the state/government.
Their main aim is to provide a service (for example: education, hmrc and health)
What is a private sector organisation?
- Private business owned by the shareholders but ran by the directors.
- Sole traders or partnerships
- profit making organisation
- directors responsible for choosing acc’ing policies
What is a quoted PLC
Similar to a private sector organisation (privately owned) but the shares are bought and sold on.
What does the accounting system include?
- payroll
- costing and budgeting
- raising finance
- processing and recording financial transactions
Organisational structure -
flat structure (large organisation)
Operating divisions of an org are independent and have their own accounting systems.
Overall management of a large organisation responsible for all separate companies with their own accounting staff/systems
Organisational structure -
Hierarchical structure (large org)
A variety of different management levels within a large company.
For example:
Managing director responsible for sales director who is responsible for marketing, supervisors and support staff. Managing director responsible for finance director who is responsible for M & F accountants, supervisors and assistants.
Accounting systems -
External contacts??
Sales ledger - dealing with customers
Financial acc’ing - dealing with financial reports and VAT returns
Purchase ledger - dealing with suppliers
Payroll - dealing with bank payments
Accounting systems -
Internal contacts??
Sales ledger - customer balances Cashier - processing sales Purchase ledge - ordering stock Payroll - paying employees Costing - monitoring budget and pricing
Control of resources -
4 main headings??
1) E and M
2) HR
3) I
4) FR
1) equipment and materials - equipment needed on a day to day basis and any raw materials or inventory which may be used.
2) Human Resources - employment required
3) information - up to date, on a computer screen and accurate information about specifications, prices or orders.
4) financial resources - money held at the bank or can be made available within a set period.
How can costs be managed in an organisation that manufactures multiple items?
Cost per unit
Sales per unit
Profit per unit
How should profitability be managed in an organisation that manufacturers multiple products?
Standard costing
Variances
Reconciliations with supplier statements and plca..
Would a purchase invoice being omitted from the suppliers account be detected or not?
Detected
Reconciliations with supplier statements and plca..
Would a purchase invoice being posted to the wrong account be detected or not?
Detected
Reconciliations with supplier statements and plca..
Would a supplier sending an invoice for goods not received be detected or not?
Not detected
Reconciliations with supplier statements and plca..
Would a suppliers change in prices be detected or not?
Not detected
