Introduction to Practical Accounting Models Flashcards
What is an accounting model?
A tool available to control the business
What are some operating systems used?
Apple, Windows - XP, Vista, Windows 8, Windows 10
What are processors?
Processes information, measured in speed, e.g. 2.4 Mega Hertz (Dual/Quad Core i3, i5)
What is a hard disk?
Used to store information, measured in gigabytes, terabytes (USB memory pens/sticks, cloud)
What is memory?
RAM (Random Access Memory), Cache memory
What are spreadsheets?
Excel, Microsoft
What are some accounting softwares?
Sage, quickbooks, zero, etc
Who are users of spreaders and accounting models?
Students, investors/analysts, managers, accountants, many others
What are advantages of accounting models?
Consistency, accuracy, what if calculations, speed, cost, and documentary evidence
What are disadvantages of spreadsheets?
If you put rubbish in, you’ll get rubbish out, can be too accurate, cost and tame it takes to construct a model, new users, changes in proprietary software, presentation
What are some examples of accounting models?
Fixed asset grids, payroll calculations, discounted cash flow calculations, financing investment of an asset, ratio analysis, and consolidated accounts
What is the objective of an accounting model?
To be interactive and for reporting purposes
Who is going to use the accounting model?
An expert or novice for documentation/training/support
What are some key aspects to be considered when planning and designing a model?
What the objective is, who is going to use it, is there any documentation required, is there a deadline, any budgets or costs, what sections are to be printed out
How can we improve the presentation of an accounting model?
Bold and highlighting, underline, double underline, various fonts, commas are helpful, using space correctly, print correctly, make sure you can read it, appropriate use of colour
What are the main decisions to be made at the beginning when planning a model?
What areas are to be printed/seen by the recipient, how many worksheets are going to be used, how are these worksheets going to be linked to each other, what information is best placed in a ‘workings sheet’
What would be considered when constructing an accounting model to produce a business plan?
Which part of the plan is required to be formally printed out and which are only workings, should there be a BS, IS and CF statement on one worksheet or on three, should the name of the client be on each worksheet or be cross reference, should the formulae for calculating figures be included within the cells or separately, do i need to provide guidance/instructions on how to use the model - what is the best way to do this
