Business Information Systems - Assignment

Added on - 22 Mar 2021

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Business Information SystemsFinancial Management of ISCP1126
ContentsIntroduction.................................................................................................................................................3Part 1.......................................................................................................................................................3Inventory.....................................................................................................................................................3Trade Receivable.........................................................................................................................................4Description of two sources of information, derived from two information systems, used to calculateinventory and trade receivable for inclusion in the financial statements....................................................4Part 2.......................................................................................................................................................5Departmental (including project) budget/control.......................................................................................5Project Planning..........................................................................................................................................6Business Case..............................................................................................................................................7Benefits Monitoring.....................................................................................................................................8Contracts and Financing..............................................................................................................................8Bibliography................................................................................................................................................9
IntroductionFor my assignment I have been asked to create a report consisting of two parts.For part one I have been asked to define the terms “Inventory” and “TradeReceivable. I was also asked to describe sources of information, derived from twoinformation systems that are used to calculate inventory and trade receivable forinclusion in the financial statements. In the second part of the report I have beenasked to discuss the application of finance and accounting techniques within an IS/IT function. My discussion consists of justified reasons of what, when and howeach of the applications of finance and accounting are considered and used.Part 1InventoryInventory, is defined as the raw materials and products made from them that acompany owns and with the intentions to sell in purchases. Inventory is alsoincludes raw materials that are in the process of being made into a final product.Since these can be sold (in the near future) and turned into cash, it is counted as anasset on the company’s balance sheet.If a company wanted to calculate a sum of inventory to be placed as the balancesheet amount, they must estimate the value of their inventory. For example, ifArgos had 3,000 of its new radio control cars in their warehouse, and expected tosell them to customers for £150.00 each, they would be able to calculate £450,000on their balance sheet as the value of their current inventory. (3,000 cars x £150each = $450,000).Trade ReceivableTrade receivable, which is also consideredan asset on a company's balance sheet,is defined as the sum of money that is owed by customers being that a product orservices was purchases on credit. On the balance sheet this can be readilyconverted into a cash sum.If a company wanted to calculate a sum for trade recievable on their balance sheetthey would simple have to calculate all purchase that were credited by customers.For example, if Argos credit 5 unit radio control cars to a customer who still has to
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