FNSACC402A Prepare operational budgets

Running head: PREPARE OPERATIONAL BUDGET
Prepare operational budget
Name of the student
Name of the university
Student ID
Author note

1PREPARE OPERATIONAL BUDGET
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................4
Answer 5....................................................................................................................................4
Answer 6....................................................................................................................................4
Answer 7....................................................................................................................................5
References..................................................................................................................................6

2PREPARE OPERATIONAL BUDGET
Answer 1
The financial report is disseminated to the people who are interested in the entity like
employees, shareholders, analysts, suppliers and lenders. It includes the information
regarding the financial position as well as the financial performances of the entity. Through
the financial report the directors of the entity advice the shareholders regarding the business
performances and how the directors have executed their responsibilities. To be more specific,
potential investors and present investors are the main audience for the annual reports. Apart
from them customers, leaders and suppliers are also considered as targeted audience
(Sedláček 2016).
Answer 2
The above mentioned people require information included in annual reports for the
below mentioned reasons –
 Employees – it delivers the management with the opportunity of praising the
employee’s quality, innovation, commitment and teamwork, those are required for
the success of business. It also helps the employees to understand different segments
of the entity
 Suppliers – the ability of the company regarding meeting of the requirements of
customers will be compromised seriously if it is burdened with incompetent
suppliers. Through highlighting the internal measurement regarding quality,
innovation and commitment implicit message can be sent to the suppliers regarding
the expectation of the entity (Grant 2016).
 Shareholders, lenders and investors – they are concerned regarding the return and
risks related to their investments. They further needs the information for deciding