Financial Resources: Management and Financial Accounting, Capital Budgeting Techniques, and Financial Ratios

Financial Resources

EXECUTIVE SUMMARY
Financial resources are those factors by which an organisation generate their monetary funds.
This report is prepared on the basis of examine concept of financial resources, managerial and
financial accounting.
In this report capital budgeting techniques and financial ratios are uses for taking business
decision for choosing best alternative option compare with others.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Explanation of management and financial accounting................................................................1
Difference between management and financial accounting with respective users......................1
QUESTION2....................................................................................................................................2
Cost benefit analysis....................................................................................................................2
Payback period.............................................................................................................................3
Accounting rate of return.............................................................................................................4
Net present value and internal rate of return................................................................................5
Analysis and conclusion..............................................................................................................6
QUESTION 3...................................................................................................................................7
Calculation of ratios.....................................................................................................................7
Comparison of ratios....................................................................................................................8
Suggestions for improvement......................................................................................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Financial resources represent collection of monetary funds of an organisation. These play
vital role in running an organisation successfully. Managers use these resources to carry out
their managerial functions effectively. In this report Swipe- wire is taken. Concept of
management and financial accounting has been described and techniques of captain
budgeting for taking decision has been defined.
QUESTION 1
Explanation of management and financial accounting
Management accounting: It define as a process of collecting financial and non-financial
information in a way which help managers to perform their managerial function effectively.
It is also known as managerial accounting. Manager of Swipe-wire use this technique for
taking short term as well as long term strategic decision and enhancing performance of their
organisation. Reports generated through management accounting are used by management
to make necessary decisions. These reports are known as Management accounts and these
are for internal use of any organisation (Thakur Kumar Pandit Singh and Satashia 2016,
December).
Financial Accounting: It is a process of collecting, recording and analysing monetary
transactions of a business entity. It is a part of accounting process which help an
organisation to present their financial data in better way. Manager of Swipe-wire use this
technique for identify their financial position at specific time period. They use financial
accounting for the purpose of representing their financial status to various stakeholders i.e.
shareholders, government, customers.
Difference between management and financial accounting with respective users
Particulars Management Accounting Financial Accounting
Objective Main purpose of this
technique is to provide
essential accounting
information for internal use to
make strategic decisions.
Main objective of this
technique is to analyse
financial position of an entity
and provide necessary
information to external users.
Type of transactions It deals with financial as well
as non-financial transactions.
In financial accounting only
monetary transactions are
1