Business Finance: Accounting Equation, Benefits of Listing on Stock Exchange, Internal & External Stakeholders, Difference between Profit & Cash

BUSINESS FINANCE

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK 2.......................................................................................................................................................3
TASK 2.1................................................................................................................................................3
TASK 2.2................................................................................................................................................5
TASK 2.3................................................................................................................................................7
TASK 2.4................................................................................................................................................9
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Business finance is concerned with managing and controlling monetary resources in turn
higher profitability. In current era, business finance is higher required to overcome competition
so that higher level of benefits can be derived. Current report will involve cash budget for
attaining proper knowledge regarding balance. Present case study will include benefits that firm
can gain after listed on stock exchange. It will highlight stakeholders of Mark and Spencer
company and difference between cash & profit.
MAIN BODY
TASK 2
TASK 2.1
Financial statement is based on accounting equation which helps to get appropriate
knowledge. accounting equation is associated with assets equals to liabilities and equity. The
particular specified accounting equation helps financial statement to get balanced by involving
double entry book keeping system. Asset side of accounting equation shows valuable resources
that are controlled by the company and other part comprising liabilities & shareholders’ equity
reflects the obligations of firm. The financial position of the organization can be evaluated by
focusing on the specified accounting equation (Kennickell, Kwast, and Pogach, 2017). The
particular equation highly pay attention on deriving the significant involvement of double entry
system that records each side of transaction. Double entry book keeping pay attention on
recording the business transaction in two accounts as debit and credit. It acts to make sure that
entries are consistent by avoiding errors and mistakes this allows to obtain the information
regarding omission and improper recording of transaction so that accurate financial position can
be derived.
Double entry book keepings system helps to ascertain actual position of firm in
financial terms through eliminating errors, omissions, etc. so that having proper information
regarding processing can be derived. accounting equation aids to have balanced financial
position in turn fair and reliable accounting information can be presented. From this, it can be
articulated that accounting equation and double entry book keeping system helps in having
balanced financial position system for instance- company has purchased machinery of $10000

than firm will record this transaction by debiting machinery and crediting cash. On the basis of
this, double impact of this transaction helps financial position to get balance.