Question

EA9-C1 Discuss Creating Charts in Accounting-Related Worksheets Charts are flexible visual aids and an invaluable resource in Excel. While you used them to illustrate key data from a financial statement analysis in this chapter, they have many other accounting-related uses. It is not uncommon for charts to be associated with a variety of work- sheets, particularly those that will be disseminated to many end users. Write a paragraph of at least six sentences in which you identify four types of accounting worksheets (other than financial statement analyses). Write a second paragraph of at least six sentences to discuss how the use of charts in each worksheet would provide a benefit to the end user.

Answer 1

1^st Part:

Accounting worksheet is a statement prepared at the end of each accounting year for each individual accounting head and their changes. General worksheet is a type, where unadjusted trial balance figures (like cash account, machinery account, etc.) appear to the adjusted figures through various adjustments. Detailed worksheet is a type where more detailed information is presented through adding more columns in General worksheet. Audit worksheet is a type of worksheet where only necessary accounts are taken for reconciliation (suppose bank reconciliation sheet). Depreciation schedule is a worksheet, where columns are added to as beginning asset value, depreciation expense, accumulated depreciation, and ending asset value in each year. Before doing any final work in accounts if such worksheets are prepared, then it gives more accuracy.

2^nd Part:

Each worksheet and its charts give different types of benefits. General worksheet is the road map of how unadjusted figures of trial balance linked to their respective adjusted figures (suppose the link between beginning receivable balance to the ending receivable balance). Detailed worksheet helps management to identify more rigorously (suppose why the receivable balance falls during a period). Audit worksheet doesn’t have any fixed charts, since auditors prepare that for their own auditing work. Depreciation schedule has columns (discussed above) those are interrelated (suppose depreciation expense of last year and current year, in aggregate, give accumulated depreciation of current year). Lastly, worksheets are prepared for internal purposes and therefore its end-users are all internal.