What are the objectives of kates financial system
Financial Accounting
Systems Concepts
Kate Myers is a student at Memorial University. Her system for tracking
financesincludes the following. Kate has two credit cards; each day she places
the receipts forany items purchased on credit in a manila envelope on her
desk. She checks thesereceipts against the credit card bills at the end of the
month. Any other financial itemthat Kate thinks might be useful later is also
placed into the envelope. (An examplewould be a payroll stub from her job as a
worker in the campus cafeteria.) Kate recordsany cheque written in her
chequebook register at the time she writes it. Shortly after herbank statement
arrives, she enters any cheques written and deposits made intoQuicken1 (the
software program she uses to balance her chequebook). She then reconcilesher
bank statement against the Quicken account and prints a reconciliation
report.From time to time, Kate phones home to ask her mother to add more money
to herbank account. (Kate could e-mail or text her mom, but she’s found that
her motherappreciates the personal touch of a phone call, and the money
appears more quicklywhenever Kate phones.) Her mother, who has copies of the
deposit slips for Kate’s account, mails a cheque (from her own account) with a
deposit slip to Kate’s account.Whenever this occurs, Kate logs on to
Bluemountain.com and e-mails her mother anelectronic thank you card.The
following items are associated with this financial system:
a. Manila envelope
b. Chequebook
c. Cheques and deposit slips
d. Computer and printer
e. Quicken program
f. Credit cards
g. Credit card receipts
h. Payroll stubs, etc.
i. Monthly bank statements
j. Reconciliation report
k. Phone
Required:
1. What are the objectives of Kate’s financial system? What processes can you
identify?
2. Classify the items into one of the following categories:
a. Interrelated parts
b. Inputs
c. Outputs
3. Draw an operational model for the financial system.
