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(solved) Finance for managers pdf

   

Added on  2020-01-28

18 Pages5283 Words116 Views
FinancePolitical Science
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FINANCE FOR MANAGERS
(solved) Finance for managers pdf_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1...........................................................................................................................................11.2...........................................................................................................................................21.3...........................................................................................................................................31.4...........................................................................................................................................41.5...........................................................................................................................................51.6...........................................................................................................................................5TASK 2............................................................................................................................................62.1...........................................................................................................................................6TASK 3............................................................................................................................................83.1...........................................................................................................................................83.2.........................................................................................................................................113.3.........................................................................................................................................133.4.........................................................................................................................................14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
(solved) Finance for managers pdf_2

INTRODUCTIONThe base of an organisation is in its financial resources that are utilised by the company, amajor focus of management. Financial management gives more importance to the financialaspects involved in the business which helps administration to take decisions regarding costreduction by using finance in the form of business funding. It also stresses on costs determinationby using variance analysis in the business. Various project evaluation tools are also used in ordertop assess the project viability in order to select or reject the certain proposals.TASK 11.1Financial record keeping plays a significant role in an enterprise as it covers the majormonetary business activities which helps the company to keep records for operational and legalpurposes (Denison, 2010). There are various requirements and purpose of the financial recordkeeping which are given as below:The records of different business transactions takes place in an entity is required for taxpreparation and filling as the basic requirement of the taxation authority is to submit allthe business records that reveals true income of the business entity. This is a legalrequirement, and limited companies can be fined for not complying. The business records are helpful in negotiating with the banks for taking loans as theirmain aim is to record each and every transaction that forms part of business activities. The accrual concept of accounting also helps in recording every transactions of salewithout receiving payment in context for avoiding any forged vouchers and further futureconsequences.By keeping financial records in proper direction, the company able to assess its capabilityin terms of generating sales and revenue at the end of an accounting period.In addition to this, day-to-day costs, expenditures as well as the income can be easilydetermined by the management when it keeps record of financial transactions.For making comparison of current financial performance with the past, the financialrecords are highly supportive. Along with this, through this particular procedure, thecompany can compare with the competitor business entity as well. 1
(solved) Finance for managers pdf_3

1.2The common form used by an enterprise for recording financial information by preparingfinancial statements such as income statements, balance sheet, cash flow statements and changesin equity (Davis and Caldeira, 2010).Incomes statement: In this type of the financial recording system, basically two kinds ofthe transactions recorded. Further, those aspects which included in this process are suchas Sales or revenue and expenses.Balance sheet: Under this particular system, assets, liabilities and equity amount whichis taken from the shareholders, these three transactions are recorded.Cash flow statement: In order to record cash inflows or incomes and cash outflows orexpenses this particular process is considered by the management. Further, cash positionat the end of an accounting period is to be derived through this particular statement of thefinancials. These are the standard forms of techniques which are utilised by an enterprise to recordtheir financial information. The benefits include the ability to record business transactions thatreflects financial projections and to determine the financial position of an enterprise which helpsthem make future business decisions. The basic tools involved in recording the information isjournal, ledger and day books and cash books. In the company, Enterprise Resource Planning (ERP) system is one of the important aswell as useful for the management. It is a effective software under which financial transactionscan be easily recorded and assessed any malpractices also in appropriate ways. The legal and operation requirement of the business is to follow all the prescribedstandards and procedures in order to facilitate the entity in order to fulfil financial reporting suchas IFRS whose guideline assists an entity in financial reporting. According to the legal rule and regulations, it is mandatory to follow all the legislationsin legal manner while keeping record of the financial transactions and preparing the finalaccounts. As a limited company, some necessary rules are given as below:All the money must be either received or spent by the firm and then can include in thefinancial statements.2
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