a) An accounting information system collects and processes transaction data and then disseminates the financial information to interested parties. Accounting information systems vary widely from one business to another. But they can be summarized in what is called the accounting cycle.

Required:

a) List the basic steps in the accounting cycle. In your view which step do you think is the most important and why

(b) Kabwe is an assistant accountant at Dangote cement . The company presently has total sales of K20 million. It is the end of the first quarter and interim quarterly financial statement are supposed to be prepared. Kabwe is hurriedly trying to prepare a trial balance so that quarterly financial statements can be prepared and released to management and the regulatory agencies. The total credits on the trial balance exceed the debits by K100,000. The deadline for presenting financial statements is 17hours. To meet the 17 hours deadline, Kabwe decides to force the debits and credits to balance by adding the amount of the difference to the Equipment account. She chooses Equipment because it is one of the larger account balances; percentage-wise, it will be the least misstated. Kabwe She believes that the difference will not affect anyones decisions. She wishes that she had another few days to find the error but realizes that the financial statements are already late.

Required:

i)Who are the stakeholders in this situation? What are the ethical issues involved in this case?

ii)What do you think of Kabwes action?

iii)What alternatives are open to Kabwe instead of what she has done