Final answer:
To provide balance sheets and income statements for different segments, one must ensure the accounting system is capable of handling multiple segments and maintain the integrity of the double-entry system. Consistent allocation rules and separate T-accounts for each segment are essential to accurately track financial performance.
Step-by-step explanation:
In advising a customer who seeks to have balance sheets and income statements for different segments such as cost centers and program segments, certain considerations should be kept in mind. These financial statements typically operate with a dual aspect or dual-entry principle, exemplified by the T-account used in bookkeeping.
The T-account balance sheet consists of a two-column format with a T-shape formed by the vertical line down the middle and the horizontal line under the column headings for "Assets" and "Liabilities". If the customer wants to track multiple segments, ensure that the accounting system in use can handle multiple segments and allocate transactions accordingly. Furthermore, it's vital to maintain the integrity of the double-entry system to ensure that each segment's books are balanced independently.
To achieve this, firstly, consistent allocation rules should be established to distribute income and expenses across each segment. Secondly, set up separate T-accounts for each segment to meticulously record the financial transactions and maintain segment-specific balance sheets and income statements. This approach will provide a clear picture of the financial performance and position of each segment.