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Identifying Use of Accounting Information System

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Added on  2020-11-23

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USING INFORMATION 1 TABLE OF CONTENTS INTRODUCTION 1 SECTION 1 1 1.Providing brief definition of different Accounting reportand statement 1 2. SECTION 1 1 1.Providing brief definition of different Accounting report and statement Cash flow statement – This is a statement which shows the way changes in balance sheet and revenue earned by firm during specific accounting year. Cash flow statement can be used by finance manager or other stakeholder such as investors for analysing the way cash has been spent by an enterprise in particular financial year.

Identifying Use of Accounting Information System

   Added on 2020-11-23

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USING INFORMATION 1
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1SECTION 1....................................................................................................................................11. Providing brief definition of different Accounting report and statement...............................12. Identifying the use of accounting information system............................................................3SECTION 2.....................................................................................................................................41. Biggest income booster for Boots Plc and its overall percentage in organisation...................42. Labelled Pie chart reflecting percentage of all aspects of company........................................53. Performance of product areas of business according to differing growth rates......................54. Recommendation of strategy to Boots for consolidating position in market..........................75. Use of mean and standard deviation to comment on 5 years’ net income of firm..................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
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INTRODUCTION Market decision making and monitoring are the core aspect of business growth andperformance. It is necessary for every company to track its performance by keeping a regularcheck of sales, increase in product and sector share. The report will identify use of accountingterms like, trend analysis, income statement, etc. In addition, assignment will outline biggestincome booster of Boots Plc, which is beauty and health retail chain of UK. It will identifydiffering growth rates according to performance of product areas with the help of retail weekdata 2017. Accordingly, it will provide recommendation to Boots for consolidating marketposition. SECTION 11. Providing brief definition of different Accounting report and statement Cash flow statement – This is a statement which shows the way changes in balance sheetand revenue earned by firm effect cash. The cash flow statement breaks the income generated byorganisation into various parts such as operating, investing and financing activities. It isgenerally used by manager in an organisation for analysing the total income generated andexpenses incurred by business entity during particular financial year. Cash flow statement isutilised by management for determining the need of financial resources for fulfilling therequirement of various business operations. It can also be utilised for addressing the variations incash flows and determining the reason for same. Cash flow statement is mainly used for makingthe financial plans for business (Boddy, McCalman and Buchanan, 2018). It is used bymanagement for making the major business decisions.Manager by using the cash flow statement can easily determine the operational activitieswhich are contributing towards firm profit. It helps management in eliminating those activitiesdue to which an organisation has to suffer loss. Cash flow statement consists of summary of alltransactions which has been made by an enterprise during specific accounting year. For instance,cash inflow from investing activities such as revenue generated by firm by making short terminvestment in particular project. Cash flow statement can be used by finance manager or otherstakeholder such as investors for analysing the way cash has been spent by an enterprise inparticular financial year.Income statement- This is one of the primary financial statementwhich is used bymanagement or other stakeholders such as investors for assessing the business performance as1
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well as company financial position during specific accounting period. Income statement can bedefined as summary of management performance which can be measure in terms of profitabilityof business entity during particular period of time. It is used for analysing the aggregate revenueearned as well as expenditure made by an enterprise in specific financial year (Amiram andOwens, 2018).Income statement is used by management for identifying whether firm has incurred profit orloss during specific financial year. It can be used by managers, investors or other stakeholdersfor determining the way an enterprise incurs its revenues and expenses through both operatingand non-operating activities. For instance, Tesco offers grocery products, company generatesincome which is recognized as revenue by selling goods and providing services to customers. Itcan be used by accountant for calculating the tax liability.A.Statistical data- It is defined as accumulation of factsusing whichconclusion can bedrawn. Statistical data is considered by management before selecting the specific projectfor making the investment. It helps business entity in identifying the profitable project.Statistical data is mainly used for making the comparison between current as well as pastfinancial performance of company (Hoque, 2018). This data is also utilised bymanagement for comparing two projects on which business entity can make investment.Statistical data can also be used for identifying the solution to financial performance. Itenables managers to track non-monetarydataand then utilized thatinformationforpreparing reports and income statements.Statistical data is used by accountant for forecasting earnings, consumption, cashflows etc. Firm can utilise this type of data for calculating the average income earnedduring specific accounting year. For instance, customer perception about company’sproducts, through the statistical data manager in an organisation can easily analyse whatpeople perceive about business and they can identify the area which requiresimprovement.B.Annual report –This is recognised as comprehensive report which consist of informationabout various activities performed by business entity during particular period of time.Annual report can also be utilised by stakeholder for analysing the financial performanceof organisation.2
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