Recording Business Transaction

Recording Business Transaction

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................5
PART 3............................................................................................................................................7
PART 4..........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Accounting alludes to a series or array of practices that involves tracking, assessment,
review and summarizing data of financial activity of an entity within business segment and that's
only carrying out with aid of accounting. Practically, accounting is indeed systematic language
of business and related activities. That allows the corporation to transform the current operations
into meaningful statements/reports that could be categorised according to their respective use and
relevance. Such statements and accounts shall be rendered in such a manner as to assist in the
measurement of financial results together with the status of the corporation (Coate and
Mitschow, 2018). The study covers different aspects related to accounts and recording
of financial transactions. The study consists of discussion about decision makers of corporation
and to what extent they require accounting information, pros and cons of accounting as well as
practical tasks to record business transactions and prepare financial statements.
PART 1
Recognise who are decision-makers and describe their requirement/needs with regard to
accounting-information.
The decision-makers are an individual, generally in the management, who takes tough
choices that have an effect on the way the organisation works. Employee personnel who are good
decision-makers understand how to quickly solve challenges and leverage critical reasoning
skills to better resolve issues. They will easily weigh the different choices and settle on the result
that ideally serves the corporation and its personnel (Zeff and Dyckman, 2020).
Financial management includes the compilation, review and summary of all financial
details in the way that could be utilized in reporting. Such kinds of reports, which provide
financial statistics, are helpful for drawing up an appropriate financial and budgetary plan and
policy. Through this organisation will be able to cope with their performance in near future. As
well as being able to deliver better customer offerings to end customers. All the tasks, beginning
from induction to shooting, include the assessment of the revenues target, the preparation of
advertising events along with their budgeting, as well as option of various strategies and
applications for conducting different tasks and operations. And both of these decisions are made
by top executives and corporate managers.
Decision makers are mainly top management personnel within company like in Tesco
which multinational UK based retailer has Board of directors which prime decision makers of

company. Company have Board of Directors with varying perceptions, insights and opinions
supports the members of the Community by improved corporate results. Our Board consists
of Chairman, Senior Independent Director, Group's Chief Executive Officer, Chief Financial
Officer, and number of independent non-executive directors. Tesco’s Board consists of:
 Jhon Allan Non-executive Chairman
 Ken Murphy Group Chief Executive
 Alan Stewart CFO
 Stewart Gilliland Independent Non-executive Director.
 Byron Grote Independent Non-executive Director.
 Alison Platt Independent Non-executive Director.
 Mikael Olsson Independent Non-executive Director.
 Steve Golsby Independent Non-executive Director.
 Simon Patterson Independent Non-executive Director.
They require accounting information about cost of revenue, performance and liquidity of
the corporation for strategy, monitoring and making decisions. Decision makers is involved in
evaluating the potential of the group to make money in the potential. It is accountable for
determining the liquidity of the organisation and fulfilling its financial commitments on
schedule. By the different proportions like Debts – Equity Proportion, Current Ratio etc. They
need accounting information to understand shorter-term or longer-term solvency of company.
Likewise, the imperative for shorter-term and longer-term funds could be identified with aid
of Cash Flows Statements.
Financial accounts/statements reflect all accounting transactions relating to the business
in a nutshell that allows it feasible and convenient for the executive team, alongside
corporate managers, to use this knowledge in the implementation of strategies. In which the
financial statements are drawn out on the grounds of common standards and procedures
that are same across the sector. This allows them to distinguish themselves from other rivals for
positioning around industry benchmarks. It establishes a framework for management/BOD to
take decisions on the capital budgeting, including whether such decisions are desirable and
commercially viable for the organisation to take. Furthermore, forecasts and predictions are both
based on financial information within the organisation and on change as per business conditions.