Business Finance: Accounting, Financial Statements, and Management Accounting

Business Finance

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Give an explanation of the business performance management drivers, as well as the
distinction between macro and microeconomics...................................................................3
2. Explanation of the role and importance of accounting in corporate decision-making......4
3. Explain the types of financial statements and are used to prepare them............................5
4. Calculate the fiscal ratios of XYZ Ltd for the year 2019 and 2020 and give an analysis
for the company......................................................................................................................6
5. Elaborate the concept of management accounting along with its importance...................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Business finance is a phrase that is commonly used during corporate environment for
evaluating the finances that are supplied by the stakeholders and investors to meet the firm's
requirements. These aid in evaluate the effectiveness and productivity of company concerns
based on financial statements, which are the most important aspect of any organization's
financial situation (Coakley and Huang, 2020). The report outlines the internal and external
issues that could influence the company's micro or macroeconomic environment.
Furthermore, the purpose and relevance of accounting, as well as how it aids in business
decision-making. Furthermore, the financial accounts are separated, and the year’s 2019 and
2020 ratios for the corporation XYZ Plc are calculated.
MAIN BODY
1. Give an explanation of the business performance management drivers, as well as the
distinction between macro and microeconomics.
The results and performances of any business enterprise is based on how smoothly a
firm is able to look and control its functions, operations. It is also dependent on how the
company make an optimization of its available resources and money. Because these resources
are used by the various departments and also have alternative uses. The corporate performs
its activities by observing and interpreting both these factors as they have direct and indirect
impact on the profitability of an organization. Internal and external factors are sometimes
controllable and in some cases they are not.
The components that affect the achievements and accomplishments of firm are as
follows:
 Rivalry among the market: It is not possible for any company to stand still in the
market for a long run until and unless they are not doing anything unique to achieve
its position in the industry. There are many businesses that have dealings with the
same type of commodities and services offered to them. So, in order to engage the
audience, it must adopt the unique pricing strategy or offer the products that serves
something different. When there is a tough fight between the various firms it brings
hurdles and disturbance in a company that create an adverse situation to remain
focused and it affects the company’s working and performances (Currie and Pandher,
2020). This can be considered as the macro-economic factor because it does not arise
from within of a firm.