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Accounting Simulation Assignment
In this accounting simulation assignment, students will be tasked with creating a realistic business scenario in which they must use critical thinking and problem solving skills in order to complete the assigned tasks. This is an excellent opportunity for students to learn more about accounting and how businesses operate. With this knowledge, students will be better prepared to make sound financial decisions in their future careers.
You Can’t Avoid Doing Your Taxes, But You Can Get Better at It: An Accounting Simulation Assignment
When you sign up for the Accounting Simulation Assignment, you’ll get immediate access to a video that will walk you through everything you need to do to complete your Accounting Simulation Assignment. You’ll learn how to use the same software that accounting professionals use every day, and see how they handle transactions in real life, so you can get better at doing your own taxes in the future. It’s going to be easier than you think!
The Basics Of The Tax System
Your taxes are based on income and the tax brackets you fall into. If your income falls in between two different brackets, you will be taxed according to both. The first bracket is 10% and the second is 15%. Above the 15% bracket is a 39.6% bracket for those with incomes above $415,050 as well as a top rate of 3.8% for unearned income (interest from investments). People who make less than $200,000 are not subject to the additional 3.8% surcharge on investment income. Income that does not come from wages or salaries (i.e., interest or dividends) is considered unearned.
The Internal Revenue Service has four basic rules when it comes to calculating taxes:
1) Multiply taxable income by applicable tax rates
2) Calculate deductions and exemptions
3) Add up results
4) Pay what’s due
How To Complete The Accounting Simulation Assignment
1) Create an Excel spreadsheet with two columns labeled Accounts and Transactions. In the Accounts column, list all of the accounts you will use to track transactions (e.g. Cash, Accounts Receivable, etc.). In the Transactions column list all of the transactions that you will record in your accounting system for a given time period. For example:
2) Record each transaction in your accounting system by entering it into your spreadsheet from left to right in date order. Be sure to include any account balances before recording a new transaction. For example:
3) After entering each transaction, calculate the totals for all of the account balances in your Excel spreadsheet and verify that they match your bank statement balance. For example
Tips For Successfully Completing The Accounting Simulation Assignment
The best way to prepare for the accounting simulation assignment is by taking a class in accounting. If you don’t have the time to take a course before your class begins, try taking an online practice exam. If you have time but not the inclination to study for this assignment on your own, get together with some friends and ask them to help you out.
- The first thing that you should do is read through all of the instructions. Try making a timeline for yourself so that you know when each step needs to be completed by. For example, I would write down Day 1- Read Instructions and then on Day 2 write Day 2- Do Practice Problems. That way, if you forget what day something was due on (which inevitably happens), it’s easy to find it!
- Next, skim through the problems and make notes as needed about how long each problem took or which ones were easier than others.
- Start working on the problems in order from easiest to hardest. Whenever you complete one successfully, cross it off your list so that you can keep track of what’s left.
- Every day before starting work on any new problems for that day, spend 10 minutes or less reviewing your work from yesterday’s homework session (or two days ago if today is Tuesday).
- Remember not to panic!
The Purpose Of An Accounting Simulation
This is a simulation of an accounting firm’s tax return. The purpose of this assignment is to see if you are able to determine the necessary adjustments and complete the taxation form accurately.
1) Determine Net Income from Activity Statement.
2) Determine Cost of Goods Sold from Activity Statement.
3) Determine Gross Profit by subtracting Cost of Goods Sold from Net Income from Activity Statement.
4) Calculate Gross Profit Margin by dividing Gross Profit by Sales Revenue.
5) Calculate Operating Expenses by subtracting Operating Income (if there is any) from Total Expenses.
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FAQ
What is Accounting Simulation?
Accounting simulation is a technique in which students are given fictitious companies and asked to make decisions as if they were the company’s Chief Financial Officer. This assignment is an introduction to the accounting cycle. The goal of this assignment is for students to learn how transactions are recorded in the accounting ledger and how financial statements are prepared from that information.
What are the benefits of using Accounting Simulation?
Accounting simulation assignment is a helpful tool for those who are interested in pursuing accounting as a career. The best part about an accounting simulation assignment is that it can be tailored to your needs. For example, if you are struggling with the nuances of accounting principles and want to learn more about them before committing to an online course or other program, then you can adjust the level of complexity so that it matches your skill level.
How can I create an Accounting Simulation?
To create an accounting simulation, start by creating a company. List all of the assets and liabilities the company has. Next, create income statements for three months for each month of the year. Then list all of the expenses for each month. Finally, calculate net income (income minus expenses) for each month.