Financial Statements ACC/290 For a successful business and effective performance of the company is necessary to know basic assumptions of the analysis of financial statements. Financial statements is the understanding that the analysis should be subjected to observation, testing, evaluation and formulation of a diagnosis process that took place in company and that as such, are summarized and embodied in the financial report. Financial analysis is exhaustive research quantification, description and evaluating the financial status and performance of business operations. Companies are required to at the end of each financial year, after all business changes its accounting records locked, in order to determine the exact and final state which has the purpose of compiling the financial statements. This report contains information on the financial position, performance and any changes affecting the financial position of
Cash disbursements show where you must spend some of your money, such as on employee pay, raw materials purchases, and manufacturing overhead costs Financing shows expected payments and the repayments of the borrowed funds plus interest. (Kimmel, 2009, p. 353). If there is a cash deficiency during any period, the company will need to borrow funds. If there is cash excess during any budgeted period, funds borrowed in previous periods can be repaid or the excess funds can be invested. 2) Why is a Cash Budget so vital to a company?
How and Why I keep petty cash records. My role as a team leader is to be responsible to keep a petty cash fund to pay for small daily business expenditures such as fuel, food, office supplies and travel etc. Each senior for the day will begin with checking the balance and ensuring that it is correct and balances with the shown balance in the cash book, recording this as a balance check and reporting directly to me if there are any discrepancies. Every time a small cash transaction takes place I record the times we use the petty cash in the cash book, I include a description of the expenditure, the date and the amount of cash I have used from the petty cash purse. I keep the receipts to verify the expenditure and write out a
1). Internally, a cash flow statement helps an organization check its inflows and outflows of cash; from this the company can see if they have a shortage or surplus of cash. A cash flow statement will also help a company evaluate its ability to pay its bills in a timely manner. Managers can use cash flow statements to see whether he or she has cash available for the day-to-day expenses of the company. Employees can use this statement to estimate if the company will be able to afford compensation.
The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly. C. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. D. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. AICPA AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Risk Analysis Bloom's: Application Difficulty: Hard 32. Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?
Extra observance by the internal auditor is given to payroll to maintain integrity in the transfer of funds to the general account to cover payroll expense. Payroll is authorized and collected through a time clock and authorized by supervisors. Personnel approve all new hires and payroll changes. After funds have been transferred from the general account to the employees’ account by electronic fund transfer, Mary Costain, the treasurer, compares the payroll register with the transfer
401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success. Making profit is important to people. Most of all, improving the bottom line is the primary objective for major companies. “For Robert Shively, learned that his employer, Occidental Petroleum Corporation, or also-known-as Oxy Pete,” wanted to forgo the guaranteed-employer pension plans for the less demanding 401(K) system where it is based on contributions from employee’s pay rather than from the employer’s profit. This forces the employee to save without any effort but, due to this, workers began to neglect the social security and entirely dropped the use of the original pension plan.
The Finance Director, Chief Accountant, Accounts Payable Clerk, Accounts Receivable Clerk, General Ledger Clerk, Costing Technician, Payroll Clerk and Accounting Systems Technician. See appendix 2 for an organisation chart. They all have different roles and work together to provide the financial information that the shareholders require to be able to assess the performance of the business. The accounts staff work closely with the sales staff as they need information regarding the sales of the company to enable them to raise invoices. They also liaise with the warehouse staff to know what goods have been supplied and by whom so that they are aware of the invoices that will be received from the suppliers.
-Financial management ensures that a business is monitoring their finances. Financial management involves setting budgets and ensuring that departments remain on budget throughout the year. - The financial manager or credit controller There are several ways organisations maintain financial records. They include manual systems (hard copy) and computer-based (electronic) systems. How do computer and manual systems operate?
Bonuses must be accounted for and properly publicized to shareholders. The business is usually located in the state that it does business. It can be registered in another state and do business elsewhere as long as business laws for the originating state are properly followed. A disadvantage of a C-Corporation is it requires attorneys and accountants to properly conduct business. Profits must be legally and accurately accounted for.