Financial Decision Making: Accounting & Finance Department and Ratio Analysis

FINANCIAL
DECISION MAKING

EXECUTIVE SUMMARY
Financial decision making is defined as process to take decision regarding with
different functions of organization. This report has been formulated to define how
organizations' various department help in decision making procedure as well as
relevance of ratio analysis to evaluate business performance in effective manner.

Table of Contents
EXECUTIVE SUMMARY ..................................................................................................2
TASK 1...............................................................................................................................4
Explanation of accounting & finance department..........................................................4
TASK 2.............................................................................................................................10
Ratio analysis ..............................................................................................................10
CONCLUSION ................................................................................................................13
REFERENCES................................................................................................................14

INTRODUCTION
Financial decision making is consider as the procedure in which manager took
necessary decision regarding attain business objective by using different technique of
financial management. This report has been formulated in order to define relevant of
decision making procedure, for this purpose SKANSKA PLC has been taken.
It is UK based organization which operate business in construction sector. In
order to spread market sector their management department review performance. This
report has been include, importance of finance as well as accounting sector by define
their responsibility as well as for measure performance of SKANSKA PLC , different
type of ratio have been calculate which also useful in define true and fair value of
organization.
TASK 1
Explanation of accounting & finance department
Business corporations in order to run their business in effective way require to
established a department which consider work of managing all the financial resource of
organization. For this purpose management department of SKANSKA PLC, established
accounting & finance department, which help in managing business performance of this
organization (Rodrigues, and Rodrigues, 2018).
Accounting department: This department is work for managing all the business
transaction in order to systematically record business data. Accounting department help
in analysis, collect, evaluate and manage business data in effective manner theses data
are further use for decision making purpose. Following are the role which play by
accounting department of SKANSKA PLC these are define below:
Relevance of Accounting and Finance department within SKANSKA PLC
Record transaction: Accounting department of organization is work for
recording essential business transaction. They on the basis of measuring and
calculating relevant business data convert or record business data after calculating and
measuring their business performance. Management department of SKANSKA PLC
use different software and tools in order to record business transaction they also require
to hire profession accountant which has knowledge about the field and sector of