Submitted by,

Afsana Eyerin 1430593

Md. Ashiqur Rahman 1410266
Submitted to,
Md. Iftekhar Rahman 1420939
Mr. Arif Rana
Inzamamul Haque Alif 1420686
Lecturer
Md. Johirul Islam 1310728
Department of Accounting
Independent University Bangladesh.
Course ID: ACN 441
Course name: Accounting
Information System
Section: 01
Semester: Spring 2018
Report submission date-
27th March 2018
 Letter of Transmittal

27-03-2018

To,

Mr. Arif Rana

Lecturer, School of Business

Independent University, Bangladesh

Subject: Submission of Analysis Report on Uses of Excel Function in Corporate Environment

Dear Sir,

Here is the assignment that we assigned on the topic as per your instruction. The assignment
has been completed by the knowledge that we have gathered from the course “Accounting
Information System”.

It would be impossible to begin any acknowledgement without appreciating Almighty. We

want to specially thank you our honourable course Instructor Mr. Arif Rana, for your patient
guidance and immense support. You are a remarkable mentor with excellent teaching skills.
We would be happy if you read the report carefully and we had tried to answer all the
questions that you had assigned for the assignment.

We had tried our level best to complete this assignment meaningfully and correctly, as much
as possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case it will be meaningful to us.

Finally, we would love to express our gratefulness for your support.

Thank you.

Sincerely,

Members of the Analysis.

Section: 01
 Acknowledgement

The completion of this undertaking could not have been possible without the participation
and assistance of so many people whose names may not all be enumerated. This project
consumed huge amount of work, research and dedication. Still, implementation and in
performing this project, we had to take the help and guideline of some respected persons,
who deserve our greatest gratitude.

Their contributions are sincerely appreciated and gratefully acknowledged. However, the
group would like to express their deep appreciation and indebtedness particularly to the
following:

Our honourable faculty Mr Arif Rana Sir, who has through his vast experience and
knowledge, has been able to guide us to accomplish this report. You gave us the golden
opportunity to do this wonderful report on the topic which also helped us in doing a lot of
analysis and we came to know about so many new things.

To all our family, relatives and friends who shared their support.

Above all, to the Greatest Almighty, the author of knowledge and wisdom.

We thank you.

Sincerely,

Members of the Analysis.

 Executive Summary
The report is based on the functions of Microsoft Excel. The purpose of this report is to
conduct an analysis of the accounting information system with emphasis on excel sheet
spread. This analysis is carried out based on knowledge from our course Accounting
Information System (ACN 441) lessons.

In this report we are going to analyse a manufacturing sector related all categories that
function are gather in the excel spread sheet to give the virtual experience. Through this
report we have described the usefulness of excel in corporate environment. We had go
through basic Accounting Information System. We have shown the advantages of Microsoft
excel and in the last of the report we shows the uses of function that we are used in the excel
spreadsheet.
 Table of Contents
Introduction .............................................................................................................................. 1
Relationships Across Departments ..................................................................................... 2
Internal Controls .................................................................................................................. 2
Objectives of the Report .......................................................................................................... 3
Usefulness of Excel in Corporate Environment .................................................................... 4
Advantages of Microsoft Excel ............................................................................................... 6
Uses of function that we have used in our.............................................................................. 7
Microsoft Excel......................................................................................................................... 7
VLOOKUP Function ........................................................................................................... 7
Macro Program .................................................................................................................... 8
Module 1 ............................................................................................................................ 8
Module 2 ............................................................................................................................ 8
Module 3 ............................................................................................................................ 8
Pivot table.............................................................................................................................. 9
Nested IF function ................................................................................................................ 9
Sum Function ...................................................................................................................... 10
MAX and MIN Functions .................................................................................................. 10
Average Function ............................................................................................................... 10
SUMIF Function ................................................................................................................. 11
DB Function ........................................................................................................................ 11
PMT Function ..................................................................................................................... 11
COUNTIF Function ........................................................................................................... 12
INDEX Function ................................................................................................................. 12
AND Function ..................................................................................................................... 13
OR function......................................................................................................................... 13
CONCATENATE Function .............................................................................................. 14
Conclusion .............................................................................................................................. 15
Reference ................................................................................................................................ 15
 Introduction

Accounting Information System – “AIS”

An accounting information system (AIS) is the collection, storage, processing and
communicates economic information of financial and accounting data used by internal users
to report information to investors, creditors and tax authorities using a wide varieties of
technologies . An accounting information system is generally a computer-based method for
tracking accounting activity in conjunction with information technology resources.
Accounting information system process financial transaction such as sales of goods and non-
financial transaction that directly affect the processing of financial transaction such as
addition of newly approved vendors. An accounting information system combines traditional
accounting practices, such as the Generally Accepted Accounting Principles (GAAP), with
modern information technology resources. In addition, accounting information systems are
often highly secured platforms with preventative measures taken against viruses, hackers and
other external sources attempting to collected information.

Breaking Down of 'Accounting Information System - AIS'

An accounting information system contains various elements important in the accounting

cycle. A typical accounting information system includes data relating to revenue, expenses,
customer information, employee information and tax information. Specific data includes sales
orders and analysis reports, purchase requisitions, invoices, check registers, inventory,
payroll, ledger, trial balance and financial statement information.

Data Output

An accounting information system produces reports including accounts receivable, aging

reports based on customer information, depreciation schedules for fixed assets and trial
balances for financial reporting. Customer lists, taxation calculations and inventory levels
may also be reproduced.

Data Storage and Recall

An accounting information system must have a database structure to store information. This

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database structure is typically programmed with query language that allows for table and data
manipulation.

Relationships Across Departments

Within the system, the sales department can upload the sales budget. This information is used
by the inventory management team to conduct inventory and purchase materials. Upon the
purchase of inventory, the system can notify the accounts payable department of the new
invoice. An accounting information system can also share information about a new order so
that the manufacturing, shipping and customer service departments are aware of the sale.

Internal Controls

An integral part of accounting information systems relates to internal controls. Policies and
procedures can be placed within the system to ensure that sensitive customer; vendor and
business information is maintained within a company.

Briefing on Microsoft Excel

Microsoft Excel has the basic features of all spreadsheets, using a grid of cells arranged in
numbered rows and letter-named columns to organize data manipulations like arithmetic
operations. It has a battery of supplied functions to answer statistical, engineering and
financial needs. In addition, it can display data as line graphs, histograms and charts, and with
a very limited three-dimensional graphical display. It allows sectioning of data to view its
dependencies on various factors for different perspectives using pivot tables and the scenario
manager. In a more elaborate realization, an Excel application can automatically poll external
databases and measuring instruments using an update schedule. Excel was not designed to be
used as a database. Microsoft Excel is developed by Microsoft for Windows, macOS,
Android and iOS. It features calculation, graphing tools, pivot tables, and a macro
programming language called Visual Basic for Applications. From its first version Excel
supported end user programming of macros (automation of repetitive tasks) and user defined
functions (extension of Excel's built-in function library). Excel is part of Microsoft Office. In
addition to the features provided by the interface, the software allows complex calculations
and reporting by using the over 450 built in functions, Microsoft Excel can be easily extended
by using the programming interface and VBA.

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 Objectives of the Report
We can say that we all are really grateful to IUB for offering such an interesting and practical
knowledge boosting course that gives us authentic knowledge about the practical data of
Microsoft Excel Understand the practicality of Excel and Accounting Information System.
The overall objectives of the LFE-201 courses are stated below:

 To familiarize oneself with Excel’s basic features

 To appreciate what a spreadsheet is and how to analyze it
 To recognize the difference between a formula and a constant
 To become comfortable with the toolbars that are presented in Excel
 To open, save, and print Excel worksheets with ease
 To feel comfortable inserting and deleting new rows and columns
 To develop formulas to simplify calculations
 To create future Excel spreadsheets with ease and comfort
 To successfully move from one cell to another containing formulas and text
 To understand absolute and relative cell references
 To copy, cut and paste text and formulas
 To use the fill function for dates and formulas

Actually these are some of element. Excel is a medium by which we just can know these fact.

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 Usefulness of Excel in Corporate Environment
Microsoft Excel is perhaps the most important computer software program used in the
corporate workplace today whether it in small business or multinational companies or
departmental stores or in retail shops. There is immense use of excel work sheet actually need
in workplace. That's why so many workers and prospective employees are required to learn
Excel to enter or remain in the workplace.

From the viewpoint of the employer, particularly those in the field of information systems,
the use of Excel as an end-user computing tool is essential. Not only are many business
professionals using Excel to perform everyday functional tasks in the workplace, an
increasing number of employers rely on Excel for decision support. In today’s working
environment, without a proficiency in Excel is necessary.

There is top essential usefulness of Microsoft Excel in corporate environment and that follow
below:

 Storing Data

Microsoft Excel is a spreadsheet program used to store and retrieve numerical data in a grid
format of columns and rows. Excel is ideal for entering, calculating and analysing company
data such as sales figures, sales taxes or commissions. Excel offers far more tools for
calculating trends, deciphering profits, creating numerical formats and visual data. Excel can
also be used to store text-based data such as client lists, employee data and mailing lists.

 Return On Investment

Tracking total business sales in dollars along with total advertising and marketing
expenditures with Excel allows to see companies’ Return on Investment for each campaign to
see how long it takes to reach break even or additional profit levels from an ad campaign

 Scheduling

Businesses create basic employee and resource schedules with Excel that can be colour-coded
and designed to automatically update as the schedules change. Create weekly worksheets
with column headings of each day, and name the rows based on hourly slots or work shifts.

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All departments can work from the same resource sheet so that everyone knows when a given
resource is available for use.

 Basic Accounting

In small or large businesses using Excel as a basic accounting program or check book ledger.
One can enter deposits and expenditures onto each row of the sheet as would enter them into
a check register. One of the benefits of using Excel is that can compare over time business
income and expenditures monthly quarterly and yearly.

 Product Sales

Track product sales using Excel on a daily, weekly, monthly or quarterly basis. Collecting the
sales data onto an Excel spreadsheet lets employee compare progress over time, and spot
upward or downward trends as they occur. According to Microsoft, once have a meaningful
amount of sales data tracked in Excel you can then forecast sales for the next year.

 Customer Data
The inclination to make ad-hoc lists with Excel often translates into creating a full-fledged
customer database. This makes Excel a popular choice for storing customer information that
grows in detail over time, because employee can add fields as they're needed without causing
any problems with the existing data.

 Model Information

The main purpose of a spreadsheet is storage and modelling of a data set. In business sector
will likely have a store of information that is potentially of great value to a employer.
Spreadsheets model financial, statistical and any other numerical data within systems of rows
and columns.

 Inform Decisions

The ability to analyse and present data sets means that spreadsheets are used within
companies to inform the decision-making process. Any effective future planning activity
naturally needs to be informed by a clear picture of the present and past, a task spreadsheets
are ideally placed to assist.

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 Advantages of Microsoft Excel
Microsoft Excel allows one to manipulate, manage and analyse data helping assist in decision
making and creating efficiencies that will directly affect a bottom line. Whether one’s using it
for business or to help manage personal database and expenses Microsoft Excel gives the
right tools to enable to accomplish all corporate needs.

The advantages of Excel are wide and varied and are the main advantages are given below:

Easy And Effective Comparisons

Microsoft Excel has the ability to analyse large amounts of data to discover trends and
patterns that will influence a decisions making process. Microsoft Excel’s capabilities allows
summarizing company’s data enhancing the ability to organize and structure data.

Most Current Business Information

Help ensure you and your organisation work with the most current business information.
Prevent the spread of multiple or outdated copies of a spreadsheet throughout the
organisation.

Reduce Size and Improve Damaged File Recovery

The new, compressed Microsoft Office Excel XML Format offers a dramatic reduction in file
size, while its architecture offers an improvement in data recovery for damaged files. This
new format provides a tremendous saving to storage and reduces the burden on IT personnel.

Powerful Analysis of Large Amounts of Data

Excel spreadsheet enhance the ability to analyse large amounts of data. With powerful
filtering, sorting and search tools one can able to quickly and easily narrow down the criteria
that will assist in decisions making process. Work with massive amounts of data, which
supports spreadsheets that can be up to 1 million rows by 16,000 columns. In addition to the
bigger grid, Excel supports multi core processor platforms for faster calculation of formula-
intense spreadsheets.

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 Uses of function that we have used in our

Microsoft Excel
VLOOKUP Function
The VLOOKUP Excel function is one of the most important functions. This function will
look for a piece of information in a large table of data and pull in any field from that table
into new table.

We have a table’s product name and price. We use the VLOOKUP function to pull in the
product type from the larger table. We go to the cell of product type in the table and Insert a
function or click the FX button. After that we need to find the VLOOKUP function. That is
= VLOOKUP (lookup value, table array, col_index_num, [range lookup]) to find our unique
data price with drop down list of all the product.

Where the function arguments are:

lookup value - The value that you want to search for.

table array - The VLOOKUP function searches in the left-most column of this array.

col_index_num - An integer, specifying the column number of the supplied table array that you
want to return a value from.
The [range lookup] can be set to TRUE or FALSE, meaning:

If an exact match is not found, use the closest match below the lookup
value.

[range lookup]
- TRUE- Note: if this option is used, the left-hand column of the table array
must be in ascending order.

FALSE - If an exact match to the lookup value is not found, return an error.

If the [range lookup] value is omitted, it uses the default value of TRUE.

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Macro Program
A macro program is an automated input sequence that imitates keystrokes or mouse actions.
A macro is typically used to replace a repetitive series of keyboard and mouse actions and are
common in spreadsheet and word processing applications like MS Excel. The concept of
macros is also well-known among MMORPG and SEO) specialists. In our assignment we use
macro programming to find out below:

Module 1

Function gonona (mon)

Select Case mon

Case "Masala Masti"

gonona = "chips"acro Program

End Select

End Function

Module 2

Function pera(sold)

If sold >= 3000 Then pera = "good"

If sold <= 3000 And sold >= 1000 Then pera = "medium"

If sold < 1000 Then pera = "poor"

End Function

Module 3

Function Range(Product_price)

If Product_price >= 40 Then Range = "High price"

If Product_price <= 40 And Product_price >= 20 Then Range = "average"

If Product_price < 20 Then Range = "Low price"

End Function

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Pivot table
Pivot tables are used in data processing and are found in data visualization programs such as
spreadsheets or business intelligence software. Such programs can automatically sort, count,
total or average the data stored in one table or spreadsheet, displaying the results in a second
table — the pivot table — showing the summarized data. The user often sets up and changes
the summary's structure by dragging and dropping fields graphically. This "rotation" or
pivoting of the summary table gives the concept its name.

A pivot table can help quickly summarize the data and highlight the desired information. The
usage of a pivot table is extremely broad and depends on the situation. A pivot table usually
consists of row, column and data (or fact) fields.

Nested IF function
The Nested IF function is a built-in function in Excel that is categorized as a Logical
Function. Here in the excel worksheet we find out from the total if product sell at higher price
it is good if it average than moderate if its sell low price than poor. We are using formula
=IF( condition1, value_if_true1, IF( condition2, value_if_true2, value_if_false2 )) which in
our excel sheet =IF(K7>23294.42,"Good",IF(K7<10000,"Bad",IF(K7<18,0,"moderate")))

This would be equivalent to the IF THEN ELSE statement:

IF condition1 THEN
value_if_true1
ELSEIF condition2 THEN
value_if_true2
ELSE
value_if_false2
END IF

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Sum Function
The Sum function will just Sum up a group of numbers. In the excel spread sheet we sum up
cash and account receivable and total using sum function =SUM (I6:I57). We would put our
cursor in the cell we want the total to appear. We put the cursor right below the list of
numbers. Then Insert the Function. One nice thing about the sum function is that there is a
shortcut button on the Home tab. It looks like:

Once press it, Excel will look for numbers near there and put a dotted box around the
numbers that we want to summed up. The dotted box is around the correct numbers, and we
just press enter and get our total.

MAX and MIN Functions

MAX and MIN functions will simply return the largest and smallest result from a range of
numbers. We have the unit sold and we need to find the highest and lowest score. After that
we put MAX function in the bar and then drag cursor over the cells that we want to find the
max highest value for. In excel spreadsheet we use its cells =MAX(H6:H57). That Excel
will do is look through that range and pull in the highest value which is 5000.

In the function MIN this will work the exact opposite of MAX this function will pull in the
lowest value. In excel spreadsheet we use its cells =MIN(H6:H57). That Excel will do is
look through that range and pull in the lowest value which is 80.

Average Function
The Microsoft Excel AVERAGE function returns the average (arithmetic mean) of the
numbers provided. The Excel AVERAGE function returns the average of values supplied as
multiple arguments. AVERAGE can handle up to 255 individual arguments, which can
include numbers, cell references, ranges, arrays, and constants. In the excel work sheet we
find out average of unit sold using the syntax for the AVERAGE function is: =AVERAGE
(number1, [number2], [number_n]) which is =AVERAGE (H6:H57).

 number1 - A number or cell reference that refers to numeric values.

 number2 - [optional] A number or cell reference that refers to numeric values.

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SUMIF Function
The SUMIF function will look for a certain criteria and if it finds it, then it will Sum up
related cells. Here we have a table of product with unit purchase and total cost and price. On
the left we listed the date and we want to sum up the price. So we go to the first cell and
insert the SUMIF function Range which the formula is =SUMIF (range, criteria,
[sum_range]) where in excel us use formula to find:

Total price plastic jars bought =SUMIF(C6:D44,"plastic jars",D6:D44)

Total price drum bought =SUMIF(C7:D45,"drum",D7:D45).

Criteria – This is the cell we are looking for. This example we use cell C6, which is the
product we find that is plastic jar
Sum range – This is the column we need to look in to pull in the dollar amount. its the Price
column, which is column D.

DB Function
DB function returns the depreciation of an asset for a given time period based on the fixed-
declining balance method. The DB function is a built-in function in Excel that is categorized
as a Financial Function. We use DB function to find out the =DB(F6, G6,12,1) which is
=DB( cost, salvage, life, period, [number months] )

Cost; The original cost of the asset.

Salvage; The salvage value after the asset has been fully depreciated.
Life; The useful life of the asset or the number of periods that you will be depreciating Asset
Period; The period is to calculate the depreciation for.
Number months; It is the number of months in the first year of depreciation. If this
parameter is omitted, the DB function will assume that there are 12 months in the first year.

PMT Function
The Excel PMT function is a financial function that returns the periodic payment for a loan.
We use the NPER function to figure out payments for a loan given the loan amount which is
taka 900000, number of periods is 24, and interest rate which is 13.75% Purpose here is to get
the periodic payment for a loan. We are using the formula that is

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=PMT (rate, nper, pv, [fv], [type]) which in the excel sheet =PMT (L8,L9,L10,L11,1)

 rate - The interest rate for the loan.

 nper - The total number of payments for the loan.
 pv - The present value, or total value of all loan payments now.
 fv - [optional] The future value, or a cash balance you want after the last payment is
made. Defaults to 0 (zero).
 type - [optional] When payments are due. 0 = end of period. 1 = beginning of period.
Default is 0.

COUNTIF Function
The COUNTIF function works the same way as the SUMIF, however it just counts the fields
that match a certain criteria, instead of summing them. We use our table of customer location
to find number of outlet among out of 52 outlets in the areas of Uttara, Dhanmondhi,
Motirjheel and Badda. We just added a column to the table on the right saying “Branch
Location Counting” using formula =COUNTIF(range, criteria) which in the excel sheet is
=COUNTIF(F7:F57,U7),

Range – The range of cells that you want to count based on the criteria.
Criteria – The criteria used to determine which cells to count.

INDEX Function
The Microsoft Excel INDEX function returns a value in a table based on the intersection of a
row and column position within that table. The first row in the table is row 1 and the first
column in the table is column 1.

The INDEX function is a built-in function in Excel that is categorized as a Lookup/Reference

Function. From this function we need to find Which product was sold in transaction s005 ?
which is Chanachur. Which location the product dal were sold on 2nd march ? which is
Badda we are using the function below:

INDEX( table, row_number, column_number )

table
A range of cells that contains the table of data.

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row_number
The row position in the table where the value we want to lookup is located
column_number
The column position in the table where the value you want to lookup is located.

AND Function
The AND function is a logical function that checks multiple criteria and will return a TRUE
value if ALL of the criteria are TRUE. Otherwise it returns a false. Using formula
=AND( condition1, [condition2], ... )

We have this table which lists gender, Male and Female and salary and employee ID. We
want to find out in each person is a Man AND if their income is over 5000. Since we are
requiring two fields to be True, then we need to use AND.

So we want D4=”male”. We are checking the male and female column and returning a True
if they are a male. In this instance, D4 says female. So we can see in the wizard that it says
FALSE.

Next, we want to see if income is over 5000. So we enter E4>5000. Column E is the annual
income field so we check if it is over 5000. In this instance, it is not, so it returns a False.

Then overall, we need all criteria to be True in order for the AND statement to be true. Since
it is not, it is FALSE.

OR function
The OR function works similar to the AND statement. It checks multiple criteria however it
only requires ONE statement to be true to make the whole statement TRUE. We are using the
same data, but now we are looking for EITHER 1. They salary over 5000 is right OR their
income is under 5000 is wrong. Using the formula in the excel sheet
= OR( condition1, [condition2, ... conditioning] ) which is =IF(OR(E4=5000),"Right",
"Wrong")
Condition1
A condition to test that can either be TRUE or FALSE.
condition2, ... condition_n

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Optional. Conditions to test that can either be TRUE or FALSE. There can be up to 30
conditions.

CONCATENATE Function
The Microsoft Excel CONCAT function allows to join two or more strings together. The
CONCAT function is a built-in function in Excel that is categorized as a String/Text
Function. In the excel spread sheet, the start of the phrase is the word “first name and last
name” we want to combine the both name together. Since we want the same word, we can
just type in that exact word.

Then for the next two, we want to just put a reference in there so we can copy it down. So
just put D4 into Text2 and E4 into Text3.

Then this will give you the following after copying and pasting it down. We use foemula
=CONCAT( text1, [ text2, ... text_n ] ) which is =CONCATENATE(D4:D13,E4:E13)
text1, text2, ... text_n
The strings that you wish to join together. There can be up to 255 strings that are joined
together, up to a maximum of 8,192 characters.

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 Conclusion

Excel is an ideal tool for individuals and investors to manipulate financial data. Our
assignment is just a small example of everything Excel has to offer. The help function
directly in Excel. It is also important to take note of third-party cell "add-ins" to Excel, which
represent separate programs that can link directly to Excel and have pre-built formulas and
other applications, to further improve on the utility of Excel as a financial tool Excel has
feature that would help us make our project and make it better in a way. These features are·
Formulas · Comments · Hyperlinks · Pivot Tables · Cell shading · Locking cells · Cell
validation · Insert Pictures · Cell referencing · Using AUTO SUM · Conditional Formatting ·
Relative and absolute addressing · Charts (graphical representation of data) · AND, LARGE,
IF and TOTAL calculations · Dragging function. . Through this excel function we not only
learn how to use excel virtually but it also gives us all a virtual life experience of corporate
environment.

Reference
1. http://smallbusiness.chron.com/companies-use-spreadsheets-54058.html
2. https://en.wikipedia.org/wiki/Microsoft_Excel
3. http://learn.filtered.com/blog/5-key-uses-of-excel-in-the-work-place
4. https://turbofuture.com/computers/Advantages-of-Microsoft-Excel
5. http://www.software-matters.co.uk/microsoft-excel-benefits.html

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