Managing Financial Resources (D O)

Managing Financial
Resources ( D O )

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Meaning of GAAP and users of accounting information for making decisions ...............1
2. Describing the most significant financial statement to the various persons.......................2
3. Explaining the components that supplement financial statement in annual report and
numerous financial components ............................................................................................3
4.(a) Calculate the financial ratios for Smart Resort Ltd........................................................4
Q.4 (b) Write a report to the CEO concerning the performance of the organisation Smart
Resort Ltd...............................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Every organisation require various funds for conducting the operations of the business.
Finance is the lifeblood of the business which assits in running the mangerial activities. As
resources are limited and its uses are unlimited. It is mandatory for firms to keep check on the
mangment of fianncial resources (Amir and Ghitti, 2020). It provide way to attain goals and
objective of the firm. This report is divided into four parts. In part one, it explains the concept of
generally accepted accounting principles which ease the accountants in prepartion of financial
statements of the company. It also encompasses several external as well as internal users of the
financial information and how these records helps to take short term and long term decisions of
the enterprise. Discussing the importance of each statement of income, cash flow and balnace
sheet and showing which is more interest to the loan creditor and trade ceditor. Financial
reporting concepts are discussed in part three of the report. In part four, it entails the
interpretation of the fianncial ratios of two consecutive years and commenting on the same as a
finance director of Smart resorts ltd.
MAIN BODY
1. Meaning of GAAP and users of accounting information for making decisions
All the organisations are required to mainatin financial statements which are framed with
some specific rules and follow general principles in putting the transactions in various books of
accounts. For achieving transparency and uniformity in the different enterprise, GAAP was
formed by the financial accounting standard board (FASB) and govermental accounting standard
board (GASB) (Dicuonzo and et.al., 2022). It creates a base for different corporations to work on
single concept and principles. There are the some common principles which aids in prepartion of
financial records such as principle of consistency, conversatism, materiality and utmost good
faith. There are several number of users which use financial statements. It can be discussed as
given below -
 Company management - The management teams uses financial statements to know
about the actual position of the enterprise. It aids in knowing the deviations in their
current performance through which it can improve the future performance .
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