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Financial Accounting Report and Management Accounting Report

   

Added on  2020-09-03

15 Pages3439 Words29 Views
Accounting for Managers 3

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Question 1........................................................................................................................................1A. Differentiating between financial accounting report and management accounting report1Q.2 Classifying the following terms:-....................................................................................1C) Analysing the financial structure of the public company:-...............................................2D) Differentiating between a cash flow budget and a statement of cash flows:-..................2E. Depreciation and importance of depreciation in business point of view- .........................3F. Comparing the pair and determining which is larger aspects:-..........................................3Question 2........................................................................................................................................4A. Financial position and performance that affected by not taking into account the fact that adebt:-.......................................................................................................................................4B. Factors that causing negative cash flow from operating activity:-....................................4C. Changes in owner equity:- ................................................................................................4D. Explaining the reasons why business owners would leave profits in the business ratherthan withdrawing them for personal use:- .............................................................................5Question 3........................................................................................................................................5A) Calculation of financial ratios...........................................................................................5B) Report about the profitability and solvency of the company............................................7Question 4........................................................................................................................................7A) Computation of variable cost per glass.............................................................................7B) Contribution per margin....................................................................................................7C) Break-even output.............................................................................................................8D) Acceptance of order..........................................................................................................8E) Conclusion.........................................................................................................................8F) Calculation of Profit and Loss..........................................................................................8Question 5........................................................................................................................................8Preparation of Price Quotation for Job No. 43.......................................................................8Question 6........................................................................................................................................9C. Retained profit and earnings...........................................................................................10d) non financial information that venture capitalist concern about......................................10

CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONAccounting is quite useful for management to analyse business transactions. Presentreport deals with various accounting practices which are used by the management to assessperformance of business and take enhanced decisions. Thus, accounting practices aids in makingbetter decisions by the management. Question 1A. Differentiating between financial accounting report and management accounting reportThe major difference between management accounting and financial accounting report ismanagement accounting reports presented internally and financial accounting report is presentedfor the external stakeholders. Financial accounting reports shows present the financial healt ofthe company while management accounting reports concerning the day to day operation andhelping to the managers in decision making process.Financial accounting examples: 1. Balance sheet- A balance sheet shows of a company assetsliabilities, and shareholders equity. 2.Income statement- Income statement of a company showscompany expenses and revenue over a certain time of period (Scott, 2015).Management accounting examples:-1. Budget report- budget reports shows expected revenuesand expenses incurred in a certain time period.2. Job costing report- the cost incurred by specific job and compared with revenue expectation.Q.2 Classifying the following terms:-Paid up capital- paid up capital is the total amount of money which company receive inexchange of shares. In balance sheet paid up capital shown under the shareholders' equitysection.Bank loan- a bank loan is current liabilities that represent the debt which paid up in thefollowing mention year.Provision of annual leave – In balance sheet provision of annual leave shown in currentliabilities. This provision made is made for the respect of annual leave entitlement.Brand name and Intellectual property- Brand name and intellectual property areconsidered as capital assets and recorded in balance sheet as intangible assets.1

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