Learning Objective:
Demonstrate your understanding of the uses and users of accounting by observing a real business operation. Professionally present your findings in writing and orally.
Specific Instructions
Choose a local business to visit, observe the operation and (if possible) interview the manager or supervisor.
1. Write a brief 1-3 page paper (business memo format, see attached) discussing the accounting environment and answering the following questions:
– Is the company primarily service, merchandising or manufacturing? What do they do/how do they make money?
– About how many employees do they have? Who handles their accounting?
– Do they use a manual or computerized accounting system (or both?)
– What can you observe about their internal control environment?
– What is their likely accounting cycle and fiscal year end?
– What are some common accounts they might be using to record transactions (e.g., what might their chart of accounts look like?)
– Who will be interested in their financial statements?
– Any other observations or issues you might want to include
Paper is to be typed, double spaced with 1” margins and references where applicable. Use complete sentences, business language and proper punctuation and paragraphs.
Share your findings in a 5-10 minute presentation to the class during Day 9, 10 or 11 (visual aids or handout optional)
Grading Rubric/Points Available
Paper:
Clear, concise explanation of each of the above points using proper accounting/business terminology = 10 points each answer * 7 = 70 possible
Deductions:
– More than 3 spelling/grammatical errors -10 points
– Improper use of accounting terminology/concepts -10 points
Presentation:
Share your findings with the class in an oral presentation (5-10 minutes) = 30 possibleDeductions:
– “Reading” your report = -10 points
– Mumbling or hard to understand = -5 points
– Is the company primarily service, merchandising or manufacturing? What do they do/how do they make money? The company primarily manufactures. Company makes ECU’s (electronic control units) LTTC low temperature ceramic co fire (breaking and heating system) oxygen sensors (sensor is to help the engine run as efficiently as possible and also to produce as few emissions as possible) they make their money from orders people put in. for example, Chevrolet, Chrysler, Nissan order parts every 6 months, Bosch makes the parts and gets paid In money transfer.
– About how many employees do they have? Who handles their accounting?
They have around 1200 employees. Personal accountants I’m not sure what you mean by this. With this many employees I’m sure they have their own internal accounting department. How many employees are in the accounting department. Also, Bosch is an international company. Is the 1200 figure for one location or worldwide?
– Do they use a manual or computerized accounting system (or both?)
Computerized
– What can you observe about their internal control environment?
Bosch was Informative about the business and how it runs. They have a computer that counts every part that comes in and out of the company, so if their parts are shorted they get accounted for. They are certified by OSHA. (Be prepared to explain what OSHA stands for and that they are a government agency) OSHA’s mission is to “assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance
– What is their likely accounting cycle and fiscal year end? From 2012-2013 Sales went up by roughly 15 percent in the first quarter of 2013. What is their year end? December? January? June?
– What are some common accounts they might be using to record transactions (e.g., what might their chart of accounts look like?) Cash, A/R, supplies, equipment, operating expenses, prepaid insurance, wages expenses, utilities expense. With all the costs they are tracking, I”m sure their chart of accounts is broken down into hundreds of accounts, including by department or location.
– Who will be interested in their financial statements? IRS The IRS is the least of who needs this — who else will want to know about their financials?
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– Any other observations or issues you might want to include. Cleanliness, structure, and contamination awareness.
What do these factors have to do with accounting (they do — think about it). Do they use methods such as 5S to maintain their operations (if they didn’t say anything about it don’t worry about it). What’s your general conclusions about the company’s accounting and internal controls.
