Accounting System and Process

Accounting System and Process

ACCOUNTING SYSTEM 1
EXECUTIVE SUMMARY
The main aim of this report is to understand the financial information by evaluating the
liabilities. In this report, the evaluation has been done on A2 Milk Company to analyse the
financial position. The analysis states that the company used the aging method to determine
the debt. After that, the ratios are also determined to analyse the sustainability of the
company. Net profit, current ratio, and debt ratio has been evaluated to determine the
financial position of the company. In the end, it is founded that the company is in the stable
position.

ACCOUNTING SYSTEM 2
Contents
Introduction...........................................................................................................................................3
Method of Bad Debts used by the company..........................................................................................3
Methods of Bad Debts and Differences.................................................................................................4
Ratios....................................................................................................................................................5
Sustainability.........................................................................................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8