JMJ MARIST BROTHERS

NOTRE DAME OF MARBEL UNIVERSITY

COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

Arizaleta, Nonito Jr. C. May 10, 2021

BSMA - 2

FINANCIAL REPORTING PROCESS

The following contains the various steps of the financial reporting process. Place these
steps in the proper order and indicate whether each step is a function of the TPS, GLS,
or FRS.

 Record transaction in special journal

 Make adjusting entries
 Capture the transaction
 Prepare the post-closing trial balance
 Prepare the adjusted trial balance
 Prepare the financial statements
 Journalize and post the adjusting entries
 Post to the subsidiary ledger
 Post to the general ledger
 Journalize and post the closing entries
 Prepare the unadjusted trial balance

ANSWER
TPS, GLS, or FRS;
Step 1. Capture the Transaction TPS
Step 2. Record Transaction in Special Journal TPS
Step 3. Post to the Subsidiary Ledger TPS
Step 4. Post to the General Ledger GLS
Step 5. Prepare the unadjusted Trial Balance FRS
Step 6. Make Adjusting Entries FRS
Step 7. Journalize and Post the Adjusting Entries GLS
Step 8. Prepare the Adjusted Trail Balance FRS
Step 9. Prepare the Financial Statements FRS
Step 10. Journalize and Post the Closing Entries GLS
Step 11. Prepare the Post-Closing Trial Balance FRS
 JMJ MARIST BROTHERS
NOTRE DAME OF MARBEL UNIVERSITY
COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

ORGANIZATION STRUCTURE AND SPAN OF CONTROL

Refer to the organization charts labeled Structure A and Structured B in the figure for
problem 11.
a. For the organizational structure A describe the
1. advantages and disadvantages of that structure.
2. impact of the resulting span of control.
3. effect on employee behavior.
b. For the flat organizational structure B describe the
1. advantages and disadvantages of that structure.
2. impact of the resulting span of control.
3. effect on employee behavior.
c. When determining the appropriate span of control, discuss the factors should be
considered.
 JMJ MARIST BROTHERS
NOTRE DAME OF MARBEL UNIVERSITY
COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

ANSWER
a. For the organizational structure A describe the
Advantages and Disadvantages
The advantages of the organizational structure include the fact that, in this case,
this organization chart attempts to split the organization into two halves for better
understanding and accountability. Further sub-division, i.e. a bottom-up strategy, in
which an individual or employee at the lower level does not have to report to the top
level for minor problems that can be handled at the lower level. Another advantage of
presenting the system is that it freed up the top-tier, i.e. the treasurer/controller, to
concentrate on strategic issues rather than day-to-day issues.

The disadvantage is that the arrangement is not without limitations; for example,
the way this structure attempted to split the company would necessitate more staff and
manpower. It also raises the company's costs and expenditures, while also making the
reporting tree much more complicated.

Impact of the Resulting Span of Control

The number of subordinates who report directly or indirectly to a manager is
referred to as the extent of their control. Organizations with a limited scope of authority
would have fewer delegates reporting directly to him. In most cases, such organizations
have a long and thin structure with several layers, implying that there are so many
people under one roof. Many people reporting to one manager/hierarchy in an
organization with a broad scope of authority. In this scenario, the organization structure
was viewed as a narrow structure. Managers with little authority are intimately involved
in all aspects of the operations in which all workers are involved, i.e. they track them on
a daily basis. These managers assign/delegate more work to their subordinates and
expect detailed reports in return.
 JMJ MARIST BROTHERS
NOTRE DAME OF MARBEL UNIVERSITY
COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

Effect on Employee Behavior.

The opportunity to make decisions is distributed, and employees at all levels are
encouraged to participate in the decision-making process. At the same time, they must
be extremely effective since the top-level authority requires a comprehensive report.
Employees are motivated because they are remembered or rewarded early in their
careers because their work is noticed quickly, but this may also cause problems.

b. For the flat organizational structure B describe the

Advantages and Disadvantages of that Structure.
The system in this case favored a flat organizational structure and fewer workers
than the structure. In addition, by splitting the structure into two broad heads,
Treasurer and Controller, this structure took a top-down approach, with fewer hierarchy
and reporting requirements. It assigns them responsibility for any employee reporting
at a lower level, reducing the burden of chain reporting while also speeding up the
decision-making process However, the main disadvantage is that there is a delay, and
the top-level authority is overburdened with responsibility because they are responsible
for so many tasks, which affects the quality of the job.

Impact of the Resulting Span of Control.

The type of work is an important factor to consider when determining the scope
of authorization/power. Since strategic decision-making is lacking, subordinate
managers would be in charge of more day-to-day operations. As a result, day-to-day
operations are linked to a limited degree of control. Unstructured or specialized work
necessitates top-level involvement in major issues. More communication between the
manager/subordinate managers decreases the manager's extent of control. Since the
organization framework is broad extent of control would be less detailed and more
summarized.
 JMJ MARIST BROTHERS
NOTRE DAME OF MARBEL UNIVERSITY
COLLEGE OF BUSINESS AND ADMINISTRATION
City of Koronadal 9506
South Cotabato, Philippines

Effect on Employee Behavior.

According to research, organizations with a greater degree of autonomy are
favored because they encourage workers to participate in the decision-making process.
Employees can be more motivated and ethical if the structure is more broad. Employees
can operate more freely with fewer reporting requirements in the organization chart
shown. Since there is less detailed work to be done, they can work more casually,
which can be beneficial at times because their only concern is to produce the
production. Fear of having to report right away or having to work through it in great
detail, which isn't always necessary.

c. When determining the appropriate span of control, discuss the factors should be
considered
The amount of control that is necessary or should be appropriate is a balance of both
the organizational structure and the level of control. They should consider the following
considerations when developing the organization:

they should explicitly state the organization's goal and what is needed in a
reasonable amount of time, based on which the organization chart should be
prepared.
Prima facie requirement is detailed report is required for the company but at the
same time it should be cost effective then one should go for the first
organizational structure.
Keeping in mind the employee cap, which should not be exceeded, and on the
other hand, if the requirement is a summary report and significant decisions are
made by the treasurer and controller, then the other structure should be used.
As a result, considerations to consider can vary depending on the company's
objective, various reporting criteria, and manpower ability.