Role of Accounting and Finance within ALPHA

B10195
Financial Decision
Making

EXECUTIVE SUMMARY:
This project consists of two parts; Task 1 and Task 2. First task carries report on accounting and
financing functions within Alpha Ltd., it will evaluate role of both with certain illustrations for
better clarification of concepts. Alpha Limited is a manufacturing company which is based in UK
and established in 1954; the upcoming target of company is to expand in other parts of UK in 10
years. Financial statements structure with elements use in it is explained in Task1. On the other
hand Task 2 focuses on outstanding tools ratio analysis; calculation of various ratios like return
on capital employed, net profit margin, current ratio and average collection period for both
debtors and creditors has done. Significance of these ratios to users will provide more knowledge
and acknowledgement. The outcomes of ratios are supported with related comments, cause and
effect of the result. Overall financial statement and ratios work together to show performance of
the company and also reveals cause behind outcomes.

Table of Contents
EXECUTIVE SUMMARY:...............................................................................................................
INTRODUCTION...........................................................................................................................1
TASK 1
Role of accounting and finance within ALPHA:.............................................................................2
TASK 2
A. Calculations:.........................................................................................................................6
B. Comments on the performance of ALPHA LTD. results and position:...............................8
CONCLUSION:............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Financing and Accounting plays a major role together but they have different functions; to show
financial health of company; financial statement plays a major role in evaluating company’s
assets performance; additional to this it also helps in knowing details about non-performing
assets of the organization. Bookkeeping is progressively about exact revealing of what has just
occurred and consistence with laws and benchmarks. Account is tied in with looking forward and
growing a pot of cash or alleviating misfortunes. On the off chance that you like intuition as far
as a more extended time skyline you might be more joyful in fund than in bookkeeping. Decision
making is the process of choosing best alternatives among available choices. In case of Alpha;
company has to take decision on various issues such whether to buy or manufacture the product;
how to raise funds equity or debts; how much credit should be allowed to debtors, etc. Taking
proper decision on right time is the main key to success. Each budget summary has a heading,
which gives the name of the element, the name of the announcement, and the date or time
secured by the announcement. The data gave in fiscal summaries is essentially budgetary in
nature and communicated in units of cash. The data identifies with an individual business
undertaking.
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