Managing Financial Resources Report (Doc)
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Added on 2020-07-23
Managing Financial Resources Report (Doc)
Added on 2020-07-23
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MANAGING FINANCIALRESOURCES
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Q1. Main financial management and its format use by organisation..........................................1Q2: Various users of financial statements and assess the information needs.............................3TASK 2............................................................................................................................................5Q3: Interpretation of financial information by using various ratios...........................................5a) Calculation of various ratios...................................................................................................5b) Report......................................................................................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONFinance is an important aspect for any business organisation in order to manage theirbusiness operations. In hospitality industry, management of funds are necessary for achievementof long or short term objectives. Financial accounting is related with allocating various financialresources to the business (Arthur, Cheng and Czernkowski, 2010). It is used to considered timevalue of money and risk aspects in decision making process. This project report covers differentfinancial statements and formats use by various organisation. Assessment of financial statementsin decision making and its interpretation by using various ratios. The analysis of results will behelpful in comparing internal and external impacts.TASK 1Q1. Main financial management and its format use by organisationIn an organisation, it is necessary to maintain their financial record in proper manner. It isdone by using various various financial reports and statements. These statements are mainly usedfor small and large scale business organisation. The investors use to make valuable decision onthe basis of these statements which is prepared by managers by taking crucial information oftheir financial transaction during the year. Financial management is known as formal records ofaccounting activities and position of an organisation, person or other related entity. Theydescribe status of investments in business current year planning as crucial results that areassociated with it. They are known a combination of various records and facts which is based onaccounting convenient and individual judgements. It shows the revenue,expenses and income ofa organisation over a period of time (Bennouna, Meredith and Marchant, 2010). Basically, itconsists of various statements such as income statements, Balance sheet, Statement of cash-flows and retained earning records. Some useful information is collected from various banks,individuals, shareholders and other concern parties make their decision to invest their capital in abusiness. It is mostly based on ability to incur profit and maintain stability is prime concern. Thebalance sheet and income statements are best way determine financial position of the companyduring the year. All these main records are analyse and determine in proper manner prior takingany critical decision.Features of financial statements: 1
It should be accurate for which they are prepared. Unethical and confusing matters arenot be their.They should represent full and accurate details data from company's performances,position and progress during the year (Carballo-Penela and Doménech, 2010).It should be prepared in more systematic manner so that a better and effective analysiscould be made.Types of financial statements: There are various statements which can be prepared bythe company in order to determine its financial position and performances. Some of them arediscussed underneath:Income statements: Such kind of statements is based on the financial stability andperformance of business for the entire period of time. It starts with sales and deducted out of allexpenditures which are incur by company's during the year. It is done to determine net profit andloss of a Hilton Hotel (Cui and Ryan, 2011). An EPS amount can also be included if they areused for the purpose of publicly held company. Balance sheet: It is known as company's backbone. Many of the investors used toconsidered this statements as important aspects for making crucial investment plan and decision.In general categorization of assets, debts and equity is necessary part of this statements. It is keycomponents of private company's so as it include most issuances of financial records.Cash-flows statements: This kind of report are based on recording cash transactionwhich is done by the company from various activities. Such as investing, operating and financingactivities. Information about cash inflows and out flows during the year are recorded in thisstatements. It is more difficult to assemble and so it is more generally used by outside parties.Statements of changes in equity: Such kind of documents are based on all necessarychanges related with equity during the period of time are recorded in it (Healy and Palepu,2012). It consists of purchase of shares, divided issued and profit and losses incur by company.Comparison of formats with various organisationsSole proprietorshipPrivate Ltd companyPublic Ltd companyThe financial records for thisparticular company is verysimple. The reports is justrepresenting image of theIt is primary mode ofdetermine actual result of thecompany with the use of thesestatements.In this company, thestatements must reflects thecurrent and non current assetsand liabilities and other2
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