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AS and A Level: Accounting & Financial Management
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- Marked by Teachers essays 4
Evaluate how Cash flow forecasts, Break even charts, Profit & Loss statements and Financial recording systems can contribute to managing business finances Distinction3 star(s)
They are the standard way to find where your business will peak and trough in its revenues. It is also a handy way to see how much money your business has recently if it is up to date, since it lists closing balances. You can also check your trading profit (Sales capital minus costs) and revenue, (Capital from sales) whilst also having your capital from last month and costs from the current month easily displayed. These are helpful for a business because they are quick and relatively easy to make. They can be flawed sometimes because people can sometimes not make realistic estimates or consider all factors, which can result in the company being too optimistic or pessimistic in spending and sales.
- Word count: 1112
I have identified different types of ratios using financial information from the company named First communication plc. I have identified how these ratios help the user to understand the financial position and performance of the business.3 star(s)
current ratios = current assets current liabilities = ratio Most of the short term creditors would prefer high current ratios as it will reduce their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. First communication plc liquidity ratio 2008 2009 665.1 = 2.3 451.7 = 1.10 283.6 409.7 First communication result in 2008 is 2.3 in 2009 is 1.10 2009 it was 1.10. According to this result 2008 was better than 2009.
- Word count: 855
In this assignment I will talk about why costs and budgets need to be controlled and the advantages and disadvantages of controlling costs and budgets. I will also explain what can happen to a business if costs and budgets are unmonitored.3 star(s)
In a business organisation, a budget represents an estimate of future costs and budgets. Budgets may be divided into two basic classes: Capital Budgets and Operating Budgets. Capital budgets are directed towards proposed expenditures for new projects and often require special financing. The operating budgets are directed towards achieving short-term operational goals of the organisation, for instance, production or profit goals in a business firm. It is crucial for a business to control its budget. Budgets help the business to determine whether they have enough money to raise the business or generate more profit.
- Word count: 1142
This would improve the performance and success of the business overall. If a business manages its costs efficiently then it would improve the success and performance of the business. If a business employs the right amount of workers it needs then it would reduce the cost of the business. Another benefit if the business employs the right amount of staff is that the business will have more productive workers. Another advantage if the business employs the right number of staff would be that they would have enough money for other areas of the business.
- Word count: 1213