Most of the people in Malaysia think that credit card brings more disadvantages than advantages. Is that true? Yes, it is statisticly proven that credit cards bring more disadvantages. According to my parent’s experience, they use the credit cards oftenly until they get annoyed to have even a credit card. There are many peoples who are in the same boat. Credit cards brings more disadvantage because a person who is using a credit card wouldn’t know the limit of spending, can be exploit when the cards is stolen or loss and has to pay at least 10% of interest.  

Firstly, credit card users often encounter a problem that is spending without knowing their limits. They will just buy anything they like without checking the prices. Some wouldn’t know how much they spent for a particular things that they bought. Especially ladies, they will spend most on make-up products and so on without knowing their limits.

Moreover, credit cards also can be exploits when the cards has been stolen or lost. In most cases, lost credit card will be used by the thief within 24 hours if the credit card owner didn’t take an inisiatif to terminate the line. The loss of credit cards is also due to the carelessness of a credit card holder.

Other than that, with the usage or credit cards, credit card holders have to encounter another problem which is they have to pay at least 10 % of interest. The higher they spent on a particular month, the higher the rate of interest. In addition, if the payment is paid late, there will be an additional interest charged.

Paying at least 10% of interest, being exploit when the card is stolen or loss and didn’t know the limits of spending are the disadvantages of credit cards. Therefore, due to those disadvantages, it’s better for Malaysian citizen’s to reduce using credit cards.

VARIOUS TYPES OF COMMON BUSINESS EXPOSURE.

An exposure is the potential financial effect of an event multiplied by its probability of occurrence. There are eight types of exposure which are excessive cost, deficient revenue, loss of asset, inaccurate accounting, business interruption, statutory sanctions, competitive disadvantage and also fraud and embezzlement.

o   Excessive cost

Excessive cost reduces profits. Every profits made by an organization is potentially excessive.

o   Deficient revenues

Deficient revenues reduce profits. Bad debts expense on credit sales may be excessive.

o   Loss on assets

Asset may be lost due to natural disaster, theft and act of violence. An organization custody of a large quantity of assets, all of which is subject to loss.

o   Inaccurate accounting

Accounting policies and procedures may be error-prone, inappropriate or significantly different from those that are considered to be generally acceptable. Error may include valuation, timing or classification of transactions.

o   Business interruption

Business interruption may consist of a temporary suspension or ultimately the termination of operation and end of organization.

o   Statutory sanction

Statutory sanctions include any penalties that may arise from judicial or regulatory authorities who have jurisdiction over an organization and its operation.

o   Competitive disadvantage

Competitive disadvantage is the inability of an organization to remain viable in the market place. It might result from any combination of the previous exposures and also might result from ineffective management decisions.

o   Fraud and embezzlement

Fraud is the international perversion of truth in order to induce another to part with something of value or surrender a legal right. Embezzlement occurs when assets are fraudulently appropriated to one’s own use. Fraud and embezzlement may be perpetrated by outsiders against an organization or by insiders within the organization.

MID SEMESTER EXAMINATION IS AROUND THE CORNER!!!!!

         

          Exam! Exam! Exam! Everyone is tensed up for exam and same goes to me. My mid semester examination is just around the corner. Apart from that, I have 5 subjects to cope with which are Accounting Information System (AIS), Taxation, Financial Statement Analysis, Financial Management and also Financial Accounting IV. All those subjects are tough.

         I’m not really prepared as I have to do assignments and tutorials. I have just finished writing all my notes. Moreover, I only left 1 week to go. I have rush myself to revise all my exercises too. This is the first time that I’m going to write my exams on weekend which I had never done before. I hope I will do my best for my exam. In conclusion, I would also like to wish my classmates best of luck and pass with flying colours..

DIFFERENTIATE THE UBS TERMS BELOW:

*~*PERIOD VS ACCOUNTING PERIOD*~*

Period refers to calendar year such as year by year.

Accounting period refers to period which a firm prepares its internal or external accounts. It is the interval of time for the firm to report its financial statements as annually, quarterly or monthly.

*~* ADD ENTRY VS QUICK ENTRY*~*

Add entry refers to a single transaction procedure where debit and credit should be entered to complete double entry concept.

Quick entry refers to double transaction procedure where double entry and master account should be entered to generate the other side of double entry automatically.

*~*CLEAR FILE/GENERATE SAMPLE CHART VS DELETE UNWANTED TRANSACTION*~*

Clear file/generate sample chart refers to an account that will clear all the accounts that had done. To clear the account, choose no.6 under housekeeping.

Delete unwanted transaction refers to the transactions which is needed to be deleted. To delete the unwanted transaction, firstly, choose print batch of transaction under transaction. Then select the transaction that need to be deleted. Type (**********) on the reference number and make the debit and credit zero.

*~*EDIT VS V.EDIT*~*

Edit refers to a transaction that allows users to change the transaction only once.

V.Edit refers to transaction that allows users to change more than one transaction in a batch at the same time.

WHAT MAKES A GOOD COMMERCE SERVER?

What are commerce servers??? Commerce server is actually a specialized types of web server with various commerce related features. The features of commerce server are:

• Support the Secure Electronic Transaction (SET) protocol.                 It is a protocol that involves encrypting all communication between the client and server and ensures that the transactions are private and free from outside manipulation.
•  Support for specialized types of client and server authentication such as digital certificates which ensures both the client and server of each other identity.
• Enhanced security features such as multilevel security access and detailed transaction logging.
• On-line credit card or bank verification

WHY FLOWCHART IS IMPORTANT FOR ACCOUNTING INFORMATION SYSTEM?

Flowchart is an analytical technique that used to describe some aspect of an information system in a clear, concise and logical manner. Flowchart is also a type of diagram that represents an algorithm or process that shows the steps as boxes of various kinds by connecting with arrows.

 

The importance of flowchart is the business data processing will become computerized. Moreover, it develops a comprehensive understanding of information, data and ideas flows together. Flowchart is also important as the auditors used it to analyse distribution of documents.

SIX (6) UBS SKILLS THAT I HAVE LEARNED TODAY

The first UBS skill that I have learned today is maintaining debtor listing.

v  Choose debtor file maintenance under debtor listing.

v  Type all data required such as a/c no, name of the company and so on.

v   Then click save to save it.

The second UBS skill is maintaining creditors listing.

v  It is the same procedures of maintaining debtor listing.

The third UBS skills is general

v  Type the business transactions and required information.

The fourth UBS skill is transactions.

v  I am supposed to choose either add entry or quick entry to perform the transaction.

v  I had choose quick entry because it is shorter than the add entry.

The fifth UBS skill is housekeeping.

v  I’m supposed to choose setup.

v  Then choose account type description settings.

The sixth UBS skill is report.

v  Under the report column, I’m advised to check the account transactions that have done.

v  Then, check the trial balance, profit and loss account and balance sheet.

v  Moreover, I should check the bank account, sales account, purchase account and so on.

Lastly, I was advised to do backup under backup and restore. This is actually to backup our folders which have done. 

WHAT ARE 3 MAIN BUSINESS PROCESS IN AN ORGANIZATION???

This is about 3 main business processes in organization. A business process is a collection of related tasks that involve data, organization units and logical time sequence.

PRIMARY BUSINESS PROCESS

MARKETING

• Ø  Creates communicates delivers the value to the customers and maintains the relationship with customers.
• Ø  Generates the strategy that underlies sales techniques, business communication, and business development.

OPERATION

• Ø  jobs or tasks consisting of one or more elements or subtasks, performed typically in one location.

SERVICES

• Ø  Provide the customer a helping hand and satisfy the customer with service
• Ø  Examples of services are purchasing and ordering.

INBOUND SALES LOGISTICS

• Ø  Examples are inventory control and return to supliers.
• Ø  Represents the major process in to plan inbound sales logistic jointly with outbond transportation volumes to increase consolidation

OUTBOUND SALES LOGISTICS

• Ø  Examples are collection and shipping.

SUPPORTING BUSINESS PROCESS

•     HUMAN RESOURCES
•     TECHNOLOGY DEVELOPMENT
•     PROCUMENT
•     FILM INFRASTRUCTURE