Why do accountants put negative numbers in brackets

What are the reasons for negative numbers appearing in brackets2.

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Examine why an accountant would design spreadsheets with a totally separate data entry area for each report.3.

Explain the key differences between periodic inventories and perpetual inventories.

Give examples of products/situations that can be used to illustrate each. 1

Answer to Question: ACC6010 Accounting Concepts And Applications

These substituted orientations can be referred to by specific names.

The idea is to be able to quickly associate spreadsheet depictions with calculations.

One example of this is when you replace the orientations of cells with their names.

Accounting professionals who work in spreadsheets need to set aside a separate area for data entry. This helps them to show the data in a single view, under each row.

An area separate from the data entry is required for reporting. It allows the accountants to present the data in a more detailed manner, with all necessary inputs.

It is important that you understand that one area is used to store raw data and the other areas to transform the raw data into meaningful data.

You should also create a separate area to protect any information that is not required.

This separation helps to record raw data easily and eliminates any unnecessary information.

The if function provides an anticipatory intelligence for a certain set of programs. This is the main purpose of the if function.

This program allows the user to take decisions based only on the conclusion of the database flows and the development of criteria.

As the primary method of determining whether a given condition can be met by returning one value, the “if” function can also be described.

One variable must be true while the other must be false.

Here is a sample of what you might do with the above code.

These are the main differences between the periodic inventory and perpetual system.Rationale for distinction

Periodic Inventory system

Perpetual Inventory


This system is able to eliminate the cost of sales during accounting year.

When an inventory transaction occurs, the contractual update is provided to the inventory general.

Processor system

This is perfect for inventory which requires very little manual data entry.

It is impossible to manually enter data due to the variety of transactions.

Counting of the cycle

As the executor or inventory cannot be obtained, cycle counting is not permitted.

This system makes it possible to count cycles as long as the inventory count is available

Recording the purchase

The purchase asset account tracks the purchase of inventory

This system permits inventory to be bought and recorded in the manual inventor account. It’s often called as much as or as a

Investigating the transactions

It is impossible to keep track and maintain accounting records.

Accounting records are easy to track due to the availability of each unit

Suited for

For large businesses, this is the right product

Ideal for small businessesAllowance Method:

The allowance method treats bad debts as operating costs.

This method allows bad loans to be written off and not recorded under expenses.

The firm’s syllables are used to calculate the amount of credit the company owes its debtors.

This amount can be interpreted primarily in terms of percentage.

The organisation’s efficiency in total debt accumulation is affected by the amount of net receivable.

Receivables help in understanding how efficient an organisation’s collection process.

This was used to estimate the cash flow potential for cash inflows.

The following explanations explain and identify the metrics Qantas uses to measure company performance.

PAT: profit after tax is used to measure performance. It’s a non-statutory performance measure that is used by the CEO to make operation decisions.

Qantas will realize PBT once the statutory value of profit before taxes has been adjusted for the diverse effects of inefficiencies or non-designated derivates during a period.

Return on investment capital is a measure that measures the group’s performance.

After adjustments to the underlying EBIT, exclusion of operating leases which are non-cancellable and notional depreciation, the airline company calculates the ROCI value.

Net free Cash Flow: This indicator measures the financial performance of the company’s net cash flow after the computation of the operational cash flows from the net amount that has been accrued through the cash flows.

Qantas was able to calculate the effective part of changes for 2016 based on its comprehensive income. This figure was $187 Million, but in 2015 it was reported at $44 Million.

Qantas, for the Centre, reported that the transfer to the head reserves was based in part on net tax for 2016 which was $ 198 Million. However, in 2015 it was only $91 million.

In 2016, the net changes to the hedging reserve were $35 million. It was $95 million in 2015.

In 2016, the total income was $ 85 million, and $ 558million in 2015.

Todd Sampson, who is an expert on the subject matter in the country, is Qantas’s non-executive Director.

His appointment to the board might assist in the development of marketing strategies at the airline.

The operating income expressed as a percentage is what the revenue seat factor refers to.

Qantas’s revenue seat ratio was 80.1% on June 2016.

EBITDA is, however, used to decide operating cash inflows based on information derived by the income statement.

Qantas reports that EBITDA was $3.436 million for the company in 2016.


The “revenue received prior to distribution” represents the total income from consumers that was earned through the sale of goods and services.

This figure stood at $3,525million for 2016 (Qantas).


It was evident from the company’s annual reports that the retained earnings, which totalled ($100m), is of negative value.

Based on the recommended study, it was found that Ramesh had not invested in shares because the company had incurred negative retained income.

In addition, the company’s liquidity position is in a poor state. The working capital ratio also shows that there has been an increase in debt and current liability.

Ramesh’s investment division could result in losses.

Refer to:Brigham, E. F., & Ehrhardt, M. C. (2013).

Financial management theory and practice. Cengage Learning.Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016).

Financial management of public, not-for-profit and health organisations.

CQ Press.

Fly with Qantas IN – one of the best airlines around.

Finance fundamentals. Pearson.

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