Reflection Paper Accounting

1274 Words Jul 15th, 2015 6 Pages
Reflection paper
Accounting to me is challenge as a whole; it is a good subject to learn because accounting knowledge is always in demand. So far, I am on a good path learning the basics of accounting. I’ve learned how accounting affects business and how it allows organizations to identify cash inflows and outflows.
This accounting course provided me a great opportunity to understand the various important aspects of accounting that I believe will be helpful in my future practical life. I need to begin my own particular business in future for that it 's important to have great knowledge of Financial and Managerial Accounting. This course has helped me to comprehend numerous essential ideas of accounting. This knowledge is going to help me
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Chapter 05
In chapter 05, I learned different imperative parts of merchandise transactions and there recording. I found out about contra accounts Sales Returns and Allowances account, Sales Discounts account, purchase returns and Allowances account and Purchase Discounts account. Two sorts of inventory processed took after i.e. perpetual inventory system and periodic inventory technique both having their own particular benefits and negative marks and ought to be utilized according to the need of specific business. Presently computerization as encouraged numerous firms to utilize perpetual inventory method for instance it has get to be economical for some retail locations to utilize perpetual inventory methodology notwithstanding for products of low unit value, for example, goods.
Chapter 06
Chapter 06 discusses the diverse methods of inventory accounting i.e. FIFO method, LIFO method and Average cost method. All have diverse merits and negative marks under distinctive situations. For e.g. the merits of FIFO methods are-(1) Easy application, (2) the expected flow of costs relates with the ordinary physical flow of goods and (3) the balance sheet sum for inventory is liable to surmise the current market and so on. Burdens of FIFO can be – amid continually rising prices FIFO can offer ascent to paper profits. Amid times of rising prices, FIFO makes higher net income since the costs charged to cost of goods sold are lower. However LIFO expect that the

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