Finance Reflective Journal: Accounting Principles and Concepts

This reflective journal documents a student's learning journey in a finance course, focusing on accounting principles and cash management. The student, with a family background in business, reflects on their understanding of accounting terminologies, the importance of accounting standards, and the different branches of accounting like financial and cost accounting. The journal details the application of the golden rule of accounting, the significance of accounting standards in maintaining business conduct and managing monetary resources, and the global applicability of these standards. The student also explores cash management, its principles, and its importance in business operations, including cash flow, cash budgets, and various cash management practices. The journal highlights the challenges faced in understanding certain concepts and the methods used to overcome these difficulties, such as reviewing exercises and researching the subject matter. The student emphasizes the role of cash in business operations and the importance of self-evaluation to assess their knowledge.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author Note:

1FINANCE
Reflective journal writing
I am born and brought in a family whose source of income is business. My family has
a factory of clothes for infants. Therefore, from my childhood days I am quite acquainted
with the accounting terminologies. As I grew up my interest towards business also grew. The
importance of accounting terms and the effect of each term has in business I came to know
during my course of study. Impact of accounting and its necessity in a business for a sound
business activities is so significant. Many standards were prescribe by the concerned body to
solve the issue that has been taken place during business activities. Even while attending the
course I found that accounts is a broader term. There are several branches or groups in which
accounts is been divided such as Financial Accounting, Cost Accounting and Financial
Management. During my study I hold a good command over the subject. As I was familiar
with the basic terms of accounting, the concept regarding those such as asset, liability,
income, loss, expense, revenue, as well as the accounts that has been classified as per the
golden rule of accounting. With the help of the golden rule of accounting basic journal entries
were recorded under the respective accounts debiting and crediting the item as the rule
indicates (Jannelli and Tesone 2013).
For recording very transaction that has taken place in the business there is a set of rule
prescribed in order to avoid fraudulent activities and misrepresentation of the facts. Therefore
to understand the use of the accounting standards it more important to understand the
intentions and the usefulness it provide for overcoming the problems associated with
accounting. The accounting standard helps in maintaining proper code of conduct of business.
The rules as well as regulation that is followed is very severe in order to record along with
maintaining the record. Through applicability of standards it has helped in managing the use
of monetary resources sighted by the government so that the fiscal flow can be maintained.

2FINANCE
As I was learning about the accounting standard and its applicability, I came to know that its
applicable worldwide. The listed companies mandatory follow the standards to comply their
financial statement. The International Financial Reporting Statement would abated the
illegitimate actions and the financial irregularities too. Therefore in this method my
knowledge on the manner towards book-keeping standards was vast. I have learnt the
procedures to gather the material regarding bookkeeping along with the assessment of assets
as well as liabilities in an appropriate routine. The representations like common attentiveness
theory imprisonment theory or monetary alertness theory has turn out to be vibrant to me.
With admiration to attain the deliberation of stakeholders there is requirement of subsequent
the accounting standards. It turn out to be translucent to me regarding the accounting
standards touch numerous gatherings precisely on a big scale (Rukonic and Kasireddy,
2014) the accounting standards completely recuperate the market state of affairs and
affluence distribution within the community. IASB is supplementary expert form that safety
measure the internationalization of accounting standards. Therefore my stage of acquaintance
about the practice and compensations of accounting standards is suitable and most
meaningfully it licence me to change into an honourable person.
In cash management system I came to know about the different aspect of cash, it uses
and what is it actual importance in any course of business. The indication of cash that is
reflecting in the balance sheet. Through the learning process I came to know that cash flows
like blood in the business. Certain set of principles have been laid in relation to cash for
example, accessibility of external cash, determinable discrepancies of cash requirements,
eventual the necessity of cash and accessibility of external cash as well (Pozsar, 2013).
According to the situation and with help of top level of managers managing cash had place or
named the cash management as an art. My study concluded that the objective of cash
maintain ace is to decrease the need for cash, minimizing the risk when there is no scope for

3FINANCE
discharging the claims as well as any eventuality arrived in the company. This short fall of
cash did not occur if the management of company could persists with energetic and potential
functioning of management that is in case for cash. Features or functions of cash management
has been divided into planning, directing and controlling the cash flow in order to enhance
the cash level also capitalising the cash that is idle. Further moving towards the topic I came
across cash budget. This has an efficient role as because planning and controlling of cash
receipts that includes payments. The study material concluded me that cash budget is that
statement that provides an overview of those firms whose estimated inflows of cash as well
as outflow for a forecasted span of time (Dudin et al. 2015)
It offer data on the magnitude as well as effectiveness of estimated cash flow as well as cash
stabilities in the accounted period. It supports the management to regulate the necessity of
cash, as well as even aids in captivating the choice for investment. Even assist in maintaining
resistor over liquescent cash. There are numerous practises applied by the business’s director
to regulate cash. For illustration-, Goal Programming, Portfolio Management , Ratio
Analysis, Linear Programming ,Fund Flow Statement and , Simulation.
In my education process I found assured complications in appreciative the judgement
behind the organisation or certain obligation of cash that is desirable in the occupation. Even
I had difficulties in considerate the academic acquaintance about the supervision of cash. As
it is huge topic and turn around the entire accounting procedure. To overcome the difficulty I
had resolved the back workout exercises and the set of questionnaire those are obtainable at
the conclusion of the section. I have also tried to investigate the work on the subject to get the
complexity information. I equipped little study handy notes that is informal for relevance.
The entire bookkeeping basic is tangled. The previous subjects of bookkeeping the basic had
assisted me to comprehend the organization. As cash is complicated in each operation. I tried

4FINANCE
self-valuation test where I explained certain feedback form in my estimation to evaluate my
knowledge. (Jannelli and Tesone 2013)
Reference
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S. and Namitulina, A., 2015. The innovative
business model canvas in the system of effective budgeting.
Jannelli, R. and Tesone, C., 2013. The Accounting Harmonization Process: Italian Public
Principles and International Accounting Standards. Is It a Cultural Choice?. Open Journal of
Accounting, 2(04), p.115.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises:
A strategic management approach. EMAJ: Emerging Markets Journal, 5(1), pp.26-40.
Miller, P. and Power, M., 2013. Accounting, organizing, and economizing: Connecting
accounting research and organization theory. The Academy of Management Annals, 7(1),
pp.557-605.
Pozsar, Z., 2013. Institutional cash pools and the Triffin dilemma of the US banking
system. Financial Markets, Institutions & Instruments, 22(5), pp.283-318.
Rukonic, M. and Kasireddy, P.R., Intuit Inc, 2014. Method and system for identifying a
merchant payee associated with a cash transaction. U.S. Patent 8,688,573.