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AS and A Level: Accounting & Financial Management
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Accounting case study. Dear Mr Han I am writing this letter to explain how the profit and loss account and balance sheet that you have received works.
Depreciation in the profit and loss account is the loss in value of the assets in the business over a period of time. For example if there is a car or a van in the business the value of the car will depreciate over the years and will not be worth as much when it comes to selling it. The trading account is the basic process of a business. This shows how much profit the organisation makes by this basic business process, not including other costs that the business may incur.
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However, the prediction of the banks was proven to be wrong as the value of housing rapidly dropped as demand decreased due to the high prices. As demand declined house value became lower than the mortgages resulting in a large amount of foreclosure. This crisis continued inevitably affecting the stock market as financial institution reported large losses. Financial institution became unable to lend, thus slowing down economic activity resulting in a steady decrease in demand for goods and services and the bankruptcy of large corporation such as Lehman brothers and General Motors.
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Accounting Ratios. By using ratios Hills System ltd can monitor their businesss performance. The more they know about their Business performance, the easier it will be for them to make decisions about how to manage and grow their business
Accounting Ratios Page Accounting Ratios Liquidity Unit 2 Page Ratio analysis is a good way to evaluate the financial results of a business; in order to estimate its performance. They make it clear where your business stands, whether it's heading downhill or performing well. As a part showing where your business stands, they also help business accountants to figure out solutions on how boost the business up. Less closing stock This is the amount of stock the business has leftover before beginning a new year.
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Sometimes a company or an organisation is so big that it have more than one team. Communication in different teams Sometimes a company does have a hundred teams, but they all have to work together on the same level to get the results that they want. Those company's use a cross-functional team. That means that in every team someone can work together with an other team so they know what going on in their company. Rules in a team Every company does have their own rules in a team. It depends in what like a company or organisation you work, what there rules are.
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Evaluate the adequacy of accounting ratios as a means of monitoring business health in a selected organisation, using examples.
Ordinary shareholders are who in fact owned the business and they are the ones that take the risk of accepting the money from the shareholders because they would have to pay back the shareholders if the business goes in loss and they may have to shut down. I do not think that having shareholders in a business is good, because the business doesn't stay yours. You will be funded by the shareholders however you will have to give the shareholders back a percentage of money in a limited period of time or by giving them the payments in months.
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It is often used as a short term source of finance (e.g. selling a vehicle to pay debts) but could provide more longer term finance if the assets being sold are very valuable (e.g. land or buildings). If a business wants to use its assets, it may consider sale and lease-back where it may sell its assets and then rent or hire it from the business that now owns the assets. It may mean paying more money in the long run but it can provide cash in the short term to avoid a crisis.
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they might be losing out on their customers as they will be complaining about the fares and of how they have raised them in a sudden. And if the government decide to change the rate to 2.0% then the customers will have to pay less money to them which will result in more profits and more customers at the same time. My suggestions for British Airways is that they should be saying to the government that because of you our customers are falling out due to the inflation rate you have particularly set and because of that they will have
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Business studies coursework - On the next page, there is a table of Safeways profit and loss accounts:
I will be attempting to measure the success of Safeway in the following ways: 1. Business aims and objectives 2. Business Size 3. Business Ratios 4. Business Targets Business aims and objectives Any company would obviously aim to maximise their profit, reduce costs, improve their market share, and improve their reputation so that more customers will be loyal and satisfied. In Safeways 'Annual Report & Accounts 2003', the chairman - David Webster writes: "Last year was one of mixed fortunes. Our first half performance was solid, with profit growth of 4% before tax and exceptional items, achieved in a very competitive marketplace...However the announcement in early January of out proposed merger with Morrisons and the
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Your sales gradually increase towards august and is positive but not by a lot, only by �115, unfortunately you are still left with a negative closing balance. Credit Sales: Issue: Credit sales this is when a product is sold to a customer on credit, which means they receive the product before they have paid for it, normally the customer will start to pay it off a month after purchase. This method is used to gain more sales. In your business case selling on credit has gained your more sales as credit sales have increased each month the highest point increased to 1500.
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Customer needs: Customer service involves to your liking customer needs, the next step is know how to identify these. All customers contact an Organisation because they need something. Customer expectation: When any customers contact an organisation they are expecting positive fairly obvious things to happen such as being treated honestly and politely. Customer needs and expectations All businesses aim to provide good customer service but some are more successful than others. Those that are well known for providing excellent customer care are often those with the following characteristics: * They understand what customer service really means.
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It's Tousif Ahmed speaking how my I help you Not happy with shower..... I an very sorry for the problem you have experienced. I understand what are saying and why you are annoyed. I realise you were unconvinced and it won't happed again. We make sure that we get the showers fixed as soon as possible. We have sent a plumber over to fixt. Offer of membership: Things to offer the customer-we can offer you 4 weeks free subscription to your membership which allows use of all of the services at any
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The beast objectives are SMART SMART stands for: Specific - There is a clear definition often including a number for example saving �20 a week. Measurable- This means achievement can be checked. Banking your saving mean your bank statement will record and measure your achievement. Achievable- This means you attain your target if you stretch yourself a litter- so saving �20 a week may be achievable without having to make too many sacrifices. Realistic-This means the target is sensible so that you stand achance of achieving it you could not save �20 a week if you did not have a job that paid at least that amount.
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* Opportunities to analyse online competition and keep up with competitors: The Bullring can check online competition and competitors by searching their website, to see what price their selling their products and if they got any offers to customers. * Offering delivery- to- door as a sales feature: The Bullring has a team that deliver items to customer's doors which they have ordered from their website. * Online order tracking: You can find out where your parcel is by contacting the call centres, but the Bullring doesn't offer this because they don't sell anything on their website because it is only an information only website.
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They specialize in investing and developing shopping centres, retail parks and prime offices. Henderson Global Investors Ltd (now the Pearl Group Ltd): This is a leading international company; it provides a wide range of investment products and services to institutions and individuals is Asia Pacific, Europe and north and South America. Pearl Group Ltd: Is a financial service that specializes in management, it mainly focuses on investment returns, financial security and high service standards. Land Securities Group plc: Is Britain's leading property development and investment group, the company has a strategy balancing shops, shopping centres, offices, retail warehouses, leisure and industrial properties.
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The Ozone has a dedicated spinning zone which caters for 10 members per class. Also ozone has a 20m indoor swimming pool with sauna steam room. The Ozone offers a variety of personal training options. The range of equipment in the fitness arena includes a comprehensive selection of precor resistance and cardiovascular equipment including running cycling step and rowing equipment all. Definition of customer service: Customer service is often seen as an activity, performance measurement and a philosophy. That is why, generally speaking, one single definition of customer service. Customer Service is the commitment to providing value added services to external and internal customers, including attitude knowledge, technical support and quality of service in a timely manner.
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The projection of my business for the next coming years is very good and positive. I can say that my restaurant is profitable and has a high chance for expansion. The cash flow forecast of the first year has high figures
However, for the year 2009, we increased the sales to �27000 in January. Despite of this sales for the first month, we need more people coming in to the business and do more promotion. The projection of my business for the year 2008 and 2009 is that we increased our sales and earned the loyalty of the customers. This is good because in just three years, we managed to earn the profit and return the amount of money that I invested for this business.
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The financial accounting makes the entries in an account which know as ledger account. This account consists from two locations which are the debits are the people that the business owes them money, and the creditors are the people which the money is owed to. For example, assets will increase debts and will decrease credit and liabilities will decrease debits and will increase credit and capital. The reason why there are two locations in a ledger account is because it will make it easy for the financial accounting to add the credits and the debits which means to know how much money they owe and how much money the people owe them.
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This signifies that the ratio has been improved. This ratio is improved because the business has increased investment. Return on Capital Employed can be improved in such way as Mr. Kong has to increase the net profit for next year. This current figure is far greater than the industry average which shows the business is working much efficient than the average business would. Gross Profit: - Gross Profit in the year 2005 was only 44% but it have been improved only by 1% in the following year but again the following year (2007) it decreases by 2%. This signifies the ratio is worse.
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PFI/PPP is mainly applied by governments to projects which require regular, on hands maintenance. However, PFI/PPP may not be used for any kind of projects.
PFI/PPP really motivates the private sector companies. Whilst using this method, individuals are able to come up with bigger and greater ideas with huge potential. PFI/PPP enables the risks to be shifted from the public sector to the private sector, which in the long run, is far more beneficial. PFI/PPP allows the government to be very flexible with when it wants to build new public words. The project timing does not depend on the government's cutbacks and budgets, which in any other government that has not adopted the concept of PFI/PPP would require stable finances.
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So they will have records of any transactions that have been used and noted down. Sales of Invoice Sales invoice are used for receipt that has a connection between the buyer and the seller. It is a document that shows the date of purchase and name of buyer also includes what the item is and total amount of what item has been bought for. Below is a computer display of a sales invoice A Statement A statement shows the cash flow of the business including the expenses of the company and the income of the business.
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Every three months she employs you to enter these into a set of accounting books. Section 1 - Preparation Of Invoices On 30 September, you are processing the previous quarter's transactions which include four invoices that you need to post. You are required to produce copies of these invoices for your records. The first has been completed for you. Complete the details on the remaining three invoices. In the pile of correspondence you find a statement of account from Bowles Supplies Ltd.
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Banks bring together people who want to save money and people who want to borrow money. Recent News about HSBC HSBC has become the first major UK bank to offer mortgages that comply with Islamic law. Under Islamic law, the receipt and payment of interest is forbidden. As a result some of Britain's two million Muslims have chosen not to take out conventional mortgages or open bank accounts. This can leave them having to pay in cash for large purchases, such as houses.
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The reason Sainsbury needs to controls its cost properly is that it doesn't go over the budget which has been set by the company It is very significant for an organisation like Sainsbury to control its debtors properly and effectively then this would mean that the company would get its money owed paid back quickly and this would aid the company by having it money back from it debtors. This would mean that the company would have money available to pay it creditors and purchase stock.
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