The Accounting Cycle Completed
The Accounting Cycle Completed
The Accounting Cycle Completed
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YOU make the call<br />
Critical Thinking/Ethical Case<br />
5R-3.<br />
Todd Silver is the purchasing agent for Moore Company. One of his suppliers, Gem<br />
Company, offers Todd a free vacation to France if he buys at least 75 percent of<br />
Moore’s supplies from Gem Company. Todd, who is angry because Moore Company<br />
has not given him a raise in over a year, is considering the offer. Write out your recommendation<br />
to Todd.<br />
INTERNET EXERCISES<br />
Exercise 1<br />
www.tadonline.com<br />
<strong>The</strong> beginning of your accounting education is a good time to begin formulating<br />
your philosophy of how to do accounting work. By studying and learning you are also<br />
learning good work habits. <strong>The</strong> TADOnline Web site presents a section on “Why<br />
Outsource Your <strong>Accounting</strong>.” <strong>The</strong> discussion presents some good suggestions and<br />
may also cause you to reflect on how people choose an accounting or bookkeeping<br />
firm.<br />
Use that discussion as a springboard and discuss what factors you believe affect<br />
a client’s choice for someone to help them with their vital accounting records.<br />
TADOnline is not “just around the corner.” Is location an important factor in deciding<br />
who will do a business’s accounting?<br />
Exercise 2<br />
www.peachtree.com; www.quickbooks.com<br />
Most businesses today are employing some type of computerized accounting system.<br />
Some business’ requirements are simple, and they use only a general ledger<br />
program. Others are much more complex and employ inventory modules and payroll<br />
modules, in addition to accounts receivable and accounts payable modules for<br />
tracking customer and vendor information.<br />
1. Browse the two Web sits in this exercise. Compare and contrast the products<br />
by looking at information like these suggestions:<br />
a. What kind of output is available?<br />
b. How are the input systems similar?<br />
c. Does the program have an inventory module?<br />
d. At each site are there different products for different complexities in accounting<br />
systems?<br />
e. What online help is available?<br />
2. Set up a visit to a local accounting firm. In addition to the two sample programs<br />
in this exercise ask them what they use in their offices.<br />
210<br />
CHAPTER 5
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