Financial Accounting and Budgetary Planning for OLC Eatery

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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.The accounting objectives and scope in complex operating environment:..............................3
2. An assessment of the accounting function's role in decision making and meeting stakeholder
and societal needs and expectations:...........................................................................................5
3.There are some branches of accounts as well as job skill sets and expertise given:................6
4.How modern accounting is associated with the accounting system and technology:..............7
5.The extent to which moral standards, regulation, and compliance are limitation or threats to
the business:.................................................................................................................................7
PART 2............................................................................................................................................8
1. For meeting the accounting principles and standards, financial statements are prepared:......8
2, Interpretation and computation of financial ratios:.................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Financial accounting is one of the most important aspects for every business or firm which
provides assistance in maintaining records of every transaction occur in any business and
maintaining budgets for future transactions. And also helps in analysing the activities which
yield profit to the firm and which are not (van Hoek, 2019). The report explains about the key
areas of the firm OLC Eatery i.e., income statements, cash budget, objectives, moral obligations
and activities associated to the firm which operates worldwide. And the mentioned report
discussed about the benefits and drawbacks of budgetary planning and budgets for a business
organisation and how it can be utilised for the growth and stability of the firm. And after
discussing about the problems, corrective actions are identified for effective decision making and
their impacts on the complex environment with the use of limited resources. In the part 2,
financial statements are prepared and with the help of financial statements, financial ratios are
calculated to make comparisons and provide recommendations on it.
TASK 1
1.The accounting objectives and scope in complex operating environment:
Accounting is a broad term in itself which is explained by different scholars on the topics
related to it. It is an art to record, evaluate, summarise and classify in a remarkable manner and
which is in terms of funds, transactions and activities occur in a particular period of time.
Nowadays, accounting is the need of an hour which is important not only for companies but also
in other organisations such as schools, colleges, libraries, departments, etc. The corporation
determines the expense structure. Global monetary precise guidelines have produced a standard
arrangement in any case. The expenses that a corporation incurs are influenced by the activities it
engages in. As a result, the spending patterns of OLC Eatery are impacted by its operations. OLC
Eatery recognises the following expense groups: direct purchase, product development,
advertising, incidental, and administration (Schuster, Heinemann and Cleary, 2021). Every
action taken during the production process is accounted for in the project cost. It's also not
impossible to keep track of the price of making elements. Consumables and operational costs are
divided into two categories by OLC Eatery which are operational and commodities costs. The
functions of OLC Eatery are predicted. The fiscal inflow study depicts how money has flowed in
and out of the company with respected time. Forecasts have influenced decision-making

processes as well. Parts from the company's numerous components are included in the
allocations. Asset forecasting methods helps in verifying that a company's actions are backed up
by adequate funds. Forecasting can help supervisors decipher the flow of finances (LoPalo,
2019). They could be able to make money both inside and outside the building. This includes
revenue from operations as well as funding from other parties. Although OLC Eatery has a large
cash reserve, it must prepare before in case if sales and spending patterns change.
In the complex environment, accounting come up with some objectives also:
(i) Helpful in maintaining systematic records of various organisations:
(ii) Helpful in determining the net effect of the firm’s operations that is evaluating the
status of firm
(iii) Analysing the financial position in the complex environment
(iv) Generate investment by providing accounting records of the company to interested
investors.
Accounting has a wider scope in the complex environment which is outlined as follows:
Accounting is concerned with financial activities and events that result in a change in the
business firm's resources (or wealth) position. As and when such transactions occur, they must
first be detected. It's not tough because you'll have documentation in the shape of a bill or a
receipt (called vouchers) (Greenberg, Dand Hibbert, 2020). Identification of a transaction is
simple with the aid of these invoices and receipts. When you buy anything, you receive a bill,
and when you pay for it, you get a receipt.
If not done in the past, these transactions must be quantified or stated in monetary terms.
Because the statement of evidence presents the transaction in monetary terms, this difficulty is
impossible to emerge. For example, if ten books are acquired at a cost of Rs. 20 each, a bill for
Rs. 200 is produced. However, if an event cannot be described in monetary terms, it is not
considered an accounting event.
Many transactions will be recorded and classified, resulting in a large amount of financial data.
As a result, it is required to consolidate such data on a regular basis (at least once a year) in a
substantial and relevant manner. The synopsis takes the form of a profit and loss account, which
shows how much money was earned or lost, and a balance sheet, which shows how much money
was made or lost.