Financial Decision Making

Financial Decision
Making

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Report to management of SKANSKA plc about role, functions of accounting & finance department:...3
TASK 2.......................................................................................................................................................7
Assessing key ratios of SKANSKA PLC evaluate organisation's performance:......................................7
Comment on performance of SKANSKA PLC, based on computed ratios:............................................8
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Financial decision is a procedure accountable for all actions relating to the company's debt
and shareholder total liabilities, and also the issuing of bonds. Decision-making allows using the
assets ways to accomplish the organization’s goals, and it is difficult for a business entity to
succeed over period until lower financial output standards are reached. The purpose of the
financial decision is to establish an acceptable cash position in order to guarantee the trade-off
between risk and shareholders equity, i.e. a correct balance of stocks and bonds (Allaoui and
et.al, 2018). As any misunderstanding would have an influence on development and productivity,
strategic decisions will be taken accordingly by companies. Thus the, based on an interesting
description of their financial statements, companies make financial decisions. To better
understand the concept of the financial decision making select the organisation Marks & Spencer
which is retail sector organisation and conduct business in clothing. This report classified into
two tasks. In first task define about the accounting and finance department role, importance and
duties. In second task calculate the ratios and evaluate the performance of the organisation.
TASK 1
Report to management of SKANSKA plc about role, functions of accounting & finance
department:
Accounting department: An accounting department in small businesses can consist of
two separate individuals who manage all banking relations. Even so, larger corporations may
have several semi-departments of financial reporting; one may interact with taxation, for
instance, while another works with accounts receivable, and so on. The employees of business
that interact with accounting at the workplace. A significant number of educational roles inside a
company are the responsibility of the accounting department. These functions are important to
the effective functioning of a company, although they are called "back office" operations.
Functions of accounting department
Tax function: Taxes are taxes charged on a voluntary basis by a regulating agency, country,
regional and international, and extended to government service funding (Angrisani and Lee,