Reference no: EM132751016

Question - QUESTIONS ON YOUR UNDERSTANDING OF EVENTS ACCOUNTING

In the expenditure cycle in our system (just using the expenditure cycle as an example), how do you record the receipt of inventory? I know that, in a traditional accounting system, you record a debit in one place for inventory and a credit for the same amount in another place for accounts payable. Do you record the same amount in our system in two different places? Are there journal entries? Are we using double-entry accounting?

How do you determine Accounts Payable? Is there a table or file for A/P? (Hint: Think about A/R in Access assignment two.)

Does our method of recording activity violate GAAP? Why or why not?

In the expenditure cycle, how can we be sure we don't pay for an item never received?

Compared to a computerized accounting system that merely emulated a manual system, with journal entries, subsidiary ledgers, general ledger, does our business events system take more storage space, or less? Does it take more time, or less to close the books monthly? Explain.