Role of Accounting and Finance in Financial Decision Making

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Table of Contents
Task 1...............................................................................................................................................2
Role of Accounting and Finance.................................................................................................2
Task 2...............................................................................................................................................2
Ratios...........................................................................................................................................2
Performance of Alpha ltd.............................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................5
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Introduction
The following report demonstrated about financial decision making. Financial decision making
refers to the procedure which is used by organisation to make all the decisions which are related
to the Asset liability and stakeholder’s equity in the company (Cordeiro, 2018). Financial
decision helps the company to establish various financial goals and evaluate about the risk which
can be occurred in the future. This report describes role of accounting and Finance. Along with
this various ratios such as return on capital employed net profit margin and current ratio.
Task 1
Role of Accounting and Finance
Accounting and Finance plays a vital role operating the business because it assists the
management to track various income and expenses. Accounting and Finance is also responsible
for ensuring the status of compliance and give quantitative financial information to the investor,
management and the company so that they may further take various appropriate business
decisions. In this task role of accounting and Finance has been discussed for Unilever. In this
company there are three financial statements have been generated which is income statement,
balance sheet and cash flow statement so that the management of the company can know the
accurate cost of expenses and also income of the company as well. Income statement is useful
for providing all the information about profit and loss of the company (Northwood and et.al
2018). On the other hand balance it is responsible for providing snapshot of financial positions of
the business for a particular date. Apart from this cash flow statement bridges the gap between
income and balance sheet and provides all the necessary details about the cash generated by the
company for specific time duration. The main role of accounting department is to record all the
financial transactions of the company and assist the employees to know what is going on in the
business financially. Finance and accounting will help the company to use proper data and
records and also its keep an eye on the expenses gross margin and various debts. It is very
important for the company to follow all the statutory compliances. So finance and accounting
department is responsible for knowing that company must follow all the laws and regulations
which can vary from time to time, but proper accounting system and various procedures will help
the company to make sure that company must follow all the statutory compliances. The
accounting department is responsible for keeping track on sales tax VAT income tax and other
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