Accounting Information System Essay Example | Topics and Well Written Essays - 250 words

Accounting Information System - Essay ExampleAs per the system, all the 30 transactions bewilder been processed, starting from the Journal entries to adjustments, to trial balance, to profit and loss statement and finally the balance sheet, reflecting the effectiveness of the information processing system.The follow has invested all the prize cash in the business and constantly strives to enhance its products sales. The money invested has been utilised towards purchase of different products to be resold to customers at a different price. The business has recorded a 25% gross profit margin on total sales, which is a sign that the company is using its investment in an effective way to have profits.The resulting net loss of the company is due to the expenses incurred by the company on wages and rent. This tendency should be curbed to maintain a profit level for the company in future. However, this doesnt at all symbolise the ineffectiveness of business operations, as the company has recorded a sufficient level of sales and gross profit, precisely the operating expenses amounted to more than the gross profit. Therefore, the net loss of this period can easily be converted to profit by minimising and reducing the operating expenses and maintaining the watercourse sales level.