RYSZARD RBT - Copy - Copy - Copy

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Accounting

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Nov 24, 2024

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MODULE:RECORDING BUSINESS TRANSACTIONS A1 STUDENT NAME: RYSZARD STUDENT ID: 21556165

INTRODUCTION Jeff Bezon founded Amazon.com as an e-commerce website specializing in selling books over the internet in 1995 as a way to sell books online. The business offered a wide range of products in addition to those that were its core products. In North America, Amazon.com, Inc. is primarily focused on selling consumer goods and subscription services to customers, which are one of their key focuses. AWS, North American, International, and its North American businesses make up the three segments of Amazon's business. It is estimated that Amazon would have commanded 40% of the US online retail market by 2021, which would make it the country's most influential online retailer. Aside from its book, toy, and electronics categories, Amazon also offers a wide selection of apparel, pets, and groceries, as well as electronics, jewelry, and a variety of other products. One of the most important factors that retailers need to consider when making a decision when it comes to their business is the importance of speed and the allure of same day or next day delivery when choosing a distributor. The fact remains that there are other means which they can use to differentiate themselves from one another, however. ACCOUNTING PRINCIPLE Going Concern. The going concern principle assumes that the entity will continue to exist in the foreseeable future and that the entity will be able to make a profit. Accruals. A transaction occurs at a different time when cash is paid or received in accrual accounting. Consistency. If someone has worked with consistency for some time, they can easily summarize the concept as a simple concept. Through the use of tabular data more effectively, this enhancement will facilitate comparisons with data for users, and thus enhance financial reporting.

Double Entry. Double-entry accounting systems record transactions as debits and credits that are easily understandable. It is essential that debits and credits in one account are offset so that the balance is maintained. Business Entity. For a company to maintain its financial health, accounting records must be kept separate from its owners. Materiality. In general, material information is information that has the potential to be omitted, misstated, or obscured in a way that is likely to influence the decisions made by primary users of general purpose financial reports based on that information in the future. For instance, material information includes information about a particular entity that can be omitted, misstated, or obscured. Historical Cost . An historical cost measure represents the financial information about assets, liabilities, corresponding incomes, and expenses that have been incurred as a result of a transaction or other event that caused the measurement of assets, liabilities, incomes, and expenses to be made once the transaction is complete. Prudence . When certain events or transactions are taking place, it is often the case that there is uncertainty about what will happen as a result of those events or transactions. Therefore, it is essential that estimates based on current knowledge are taken into account when preparing financial statements. IMPORTANCE OF ACCOUNTING It is due to Amazon's effective accounting procedures and bookkeeping procedures that they have established a good reputation in the industry. By doing so, their business will benefit from valuable insight, allowing them to make better decisions for their business. By knowing their numbers, they can see what's working in their business, capitalize on any trends, and grow that business. The success of any business depends on the establishment of a reliable accounting and bookkeeping system. Therefore, you will be able to monitor what amounts of cash are coming in and going out of your business, as well as how much is going out (F9 Consulting, n.d.). Unless you begin from a solid foundation, you will find it a lot harder to achieve your goals as a whole if you do not build a solid foundation in the first place. A blindfolded person could not see what they were doing while playing an escape room game. Depending on your luck, you may be able to leave the situation within a short period of time.

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THE MAIN PROCESS OF ACCOUNTING. Analyze transactions As a first step, one must determine whether a particular event represents a transaction or not, and if so, how it affects the accounting cycle. Record Journal Entryes Financial transactions must be entered as journal entries as the next step in the accounting cycle. Thus, chronological organization is essential. Post entries to the general ledger In a ledger account, all journal entries made to or from the account are represented by ledger entries located in the ledger. The general ledger is made up of all the accounts that make up the general ledger system, which are referred to as general ledger accounts. Analyze the trial balance without adjusting it There is a trial balance in the accounting department where the data from ledger accounts is entered into in order to calculate the profit or loss for each accounting period. Ensure that the worksheets are accurate by checking them It is necessary to take this step in order to equalize debits and credits on a trial balance in the event that they are not equal, as a result of the trial balance showing different amounts. Record adjusting entries Organizing company transactions in the appropriate accounting period does require the use of a matching principle, which is described in the section on matching principles, as the first step to ensure that the transactions of a company are organized by period in the proper accounting period.

Close temporary accounts The last step in an accounting cycle is the closing of temporary accounts, which is the final step in the accounting process. The Income Statement deducts a temporarily written-off account from the end of the year. An account that has been zeroed out is also known as a zeroing out. CONCLUSION In accounting, expenses, gross margins, debts, and more are kept track of in an organization's finances. Financial and task management are streamlined so the organization can operate smoothly. There is a lack of legislation that guides accountants, as well as issues such as malpractice. Despite the fact that accounting is based on unsubstantiated techniques, primitive accounting standards exist as a result of the lack of research to prove the accuracy of these techniques. The Amazon company needs an accounting branch such as this because it can help them monitor their sales and expenses during the previous year, as well as recognize if they made gains or losses. It is necessary for the company to keep track of salaries, materials purchased, and materials sold in order to run efficiently and profitably. REFERENCE F9 Consulting. (n.d.). Amazon Seller Accounting. [online] Available at: https://www.f9consulting.co.uk/sectors/amazon-seller-accounting/ [Accessed 7 Dec. 2022]. History.com Editors (2015). Amazon opens for business. [online] HISTORY. Available at: https://www.history.com/this-day-in-history/amazon-opens-for-business.