In this assignment I will illustrate in a report the financial state of Domestic Dog Homes by use of accounting ratios. The ratios I will be using are: -Solvency -Profitability -Performance
Unit 2 - P6 Ratio In this assignment I will illustrate in a report the financial state of Domestic Dog Homes by use of accounting ratios. The ratios I will be using are: - Solvency - Profitability - Performance Businesses use ratios to find out how solvent they are. Solvency Equation Current Ratio To find the Current Ratio we have to divide the current assets with the current liabilities. The Current ratio formulae show us how many assets a business owns in compared to their liabilities. Current Ratio formulae: Current Ratio = Current assets / Current liabilities Domestic Dog Homes current ratio: 2.46 = 40,275 / 16,367 Acid test ratio To find the Acid test ratio we have to take away the stock from the current assets and divide it by current liabilities. The Acid test ratio formulae show us how the business can pay its liabilities without selling stock. Acid test ratio formulae: Acid test ratio = Current assets - Stock / Current liabilities Domestic Dog Home Acid test ratio: .46 = 40275 - 16300 / 16367 Profitability Equation Gross Profit Percentage To work out the Gross profit percentage you have to divide the gross profit with the turnover and multiply it by 100. The Gross Profit Percentage shows how well the business is managing its spending on stock. Gross profit percentage formulae: Gross profit percentage = Gross profit / Turnover x 100
International Harmonisation of Accounting.
International Harmonisation of Accounting I will begin by making just a brief comment on international harmonisation of accounting, following this I will put forward arguments both for and against the harmonisation of accounting. The aim of accounting harmonisation is to make the financial statements of companies comparable with the financial statements of companies in other countries. There certainly is no question that a standardised single set of international rules is needed. The harmonisation of accounting sets out a common set of standards, so that analysts, users of financial statements, people who make economic decisions, investment decisions have, in a sense, the same or equivalent information and they can compare the information that they have therefore enabling them to make those decisions. As with any set of rules there will always be arguments both for and against and accounting harmonisation is no different. I will now present arguments for both cases. Obviously when we speak of international harmonisation, businesses with multi-national dealing will be the main targets for any changes, reasons why they desire a standardised single set of rules include, accounting harmonisation is important because companies want to operate in a business environment in which they can trade, raise capital, list their securities and attract investors in different countries.
Financial Accounting.
Financial Accounting Task 1 The purpose of a business keeping accounts is to record the financial transactions because the business needs to quantify items such as sales, expenses and profit. They then need to present the figures in a meaningful way to check the success of the business. How the accounting system works First of all the accountant collects all the prime documents together such as invoices, credit notes, bank paying in slips, cheques, BACS. Once the accountant has gathered all the sources they summarise the information into daybooks, journals and cashbooks. The accountant then has to make double entries for each transaction in the above books. Double entries must be made in the sales ledger, purchase ledger, nominal ledger (which are used for petty cash and bank and cash transactions). From these double entries a trial balance is compiled which checks all the figures and calculations. After both credit and debit figures match a statement of profit (or loss) is made these are called final accounts and include trading, profit and loss account and balance sheet. Accounting records Records of account are kept in two forms handwritten and computerised. Written accounts and is the traditional way of keeping accounts and is usually favoured by smaller businesses. Nowadays the large leather-bound volume is usually disbanded for ledgers and other accounting
The role of a conceptual framework
Business Accounting II Coursework The role of a conceptual framework "If the IASB's movement towards the worldwide adoption of IFRSs is to be successful, the establishment of a more coherent international conceptual framework is necessary." Introduction The IASB which stands for the International Accounting Standards Boards was formed due to a number of different reasons. These reasons which be discussed later on in this essay. When the IASB was formed it still used the conceptual framework that was mentioned by the IASC (International Accounting Standards Committee) in 1989, the Framework for the Preparation and Presentation of Financial Statements and this will be explained including why we use the conceptual framework and who uses it. Also I will identify an accounting standard and will analyse what the framework says about it and the link between the framework and the standard. Also the advantages and disadvantages will be mentioned along with a conclusion. Brief History Before the International Accounting Standards Board (IASB) was introduced many different countries had different accounting requirements. Therefore when it came to producing accounts people got confused and this "..... creates problems ..........", (Bendrey, M., Hussey, R. and West, C. (2004), Essentials of Financial Accounting in Business, Thomas Learning, London, pg.303). An example of
Mathematics for Computing
IN1004 Mathematics for Computing Lecturer: Dr. Peter W.H. Smith [email protected] . Set Theory .1 Introduction A set is one of the most fundamental cornerstones of mathematics. It is a well-defined collection of objects. These objects are called elements and are said to be members of the set. Well-defined implies that we are able to determine whether it is the set under scrutiny. Thus we avoid sets based on opinion, e.g. the set of all great football players. .2 Notation and Set membership Capital letters, A,B,C... are used to represent sets and lowercase letters are used to represent elements. For a set A, we write x ????if x is an element of A; y ????indicates that y is not a member of A. A set can be designated by listing its elements within set braces. For example, if A is the set consisting of the first five positive integers, then we write A = {1,2,3,4,5}. In this example, 2 ?A but 6 ?A. Another standard notation for this set is A = {x | x is an integer and 1 ? x ? 5}. The vertical line | within the set may be read as "such that", the symbols {x |...} are read "the set of all x such that..." The properties following | help us to determine the elements of the set that is being described. Note: The notation {x | 1 ? x ? 5} is not an adequate description of the set A unless we have agreed in advance that the elements under consideration are integers. When
Sources of Finance
Sources of Finance Obviously to start my business I will need a large amount of capital which will could be gained through a number of methods which I will describe below pointing out the advantages and disadvantages of each one and then deciding whether it would be a good choice for the business. > Overdraft - This is a sum of money borrowed from the bank, usually for the purchase of small things such as stock, the advantages is its easy to obtain and quick however the main disadvantage is that you are charged daily interest on the money borrowed. This could be useful to the business once it is operating and making a profit however it would not be wise to get into debt with daily interest so early in the business's life > Share Issue / Investor - This is the sale of part of the business for an amount of capital, the advantage is that it is quick and sometimes the investor can also help and/or offer advice, however an obvious disadvantage is that you are loosing complete ownership of the company. I think that this could be a possibility for my company as it will need capital at the start and I would not mind selling a section of the company if it were to provide capital which would take the business further. > Retained Profit - This is finance which is obtained from successful trading, when the business makes money and it keeps it in the business it is known as retained
theory of banking
. Introduction In this paper author review the traditional theory of banking and attempt to examine the theoretical reasons for why banks exist. As a financial intermediation, the natures of the banks are to provide financial services and conduct the intermediary functions in the whole financial system by accepting deposits and making loans. The question raised here are how they conduct these roles and why the borrowers and lenders do not come together without the banks for the saving of intermediation costs, why both of the two parties are ready to pay for their services and what's the value added by the banks? The paper proceeds as follows. Section 2 offers a traditional view of banks and describes the nature of them. By analyzing how the banks conduct their traditional function, there rises a question of why the borrowers and lenders do not choose direct deal with each other? Which leads to the consideration of the theoretical rational for the existence of banks. This analysis is presented in section 3, which have an intensive expatiation in the theories. In section 4, what are the problems if the direct deals between the borrowers and lenders happen, and how can banks solve those problems are presented therefore answer the question why individuals are willing to pay the intermediation costs. This is followed in section 5 by an analysis of the recent changes in the
Business GCSE unit 1 A3
Alton Towers Coursework. Lily Enefer A3. In A3 I will suggest and justify changes or improvements to features Alton Towers could make to make the business more successful and improve it. Type of ownership Different types of ownership there is are Sole Trader, Partnership, Private Limited Company and Public Limited Company. Alton Towers are currently a Private Limited Company (LTD) and are owned my MEG, meaning that member of the public can only buy shares in MEG if they are asked to. By changing to a Public Limited Company, Alton Towers could become more known globally and attract more customers because they would have a higher profile from being on the stock exchange. The company would also be able to continue despite the death, resignation or bankruptcy of management and members. Alton Towers could become dependant and not be a part of MEG, although I don't think this is a good idea because they might not get as many customers because other MEG attractions would not be advertising them, also MEG pay for things in the park and Alton Towers may not be able to cover the costs alone. On the other hand Alton Towers could do things without having to make a decision with MEG. Changes within activity Alton Towers do not provide many rides that are accessible to wheelchair users. They could therefore increase accessibility to their rides for wheelchair users
In this assignment I will be consulting a university student's Budget schedule I will be offering the student advice on how to solve
A University Student Budget Sheet In this assignment I will be consulting a university student's Budget schedule I will be offering the student advice on how to solve problems when in dept by offering an student loan, grants etc. I will be referring to the budget schedule to what areas the student can cut sort on to cover the other costs mostly needed to be covered. UNIVERSITY STUDENT BUDGET SCHEDULE Mouthly Week 1 Week 2 Week 3 Week 4 Total INCOME DESCRIPTION University Student (Grant) £142 £142 £142 £142 £570 Interest and dividends £0 £0 £0 £0 £0 Savings £150 £0 £0 £0 £150 TOTAL INCOME £292 £142 £142 £142 £720 EXPENSE DESCRIPTION Beauty shop and barber £5 £0 £5 £0 £10 Cable TV £15 £0 £15 £0 £30 Clothing £50 £0 £50 £0 £100 Credit card payments £25 £0 £25 £0 £50 Electricity £50 £0 £0 £0 £50 Entertainment and recreation £25 £25 £25 £25 £100 Gas company £50 £0 £0 £0 £50 Gifts £15 £0 £0 £15 £30 Groceries and outside meals £15 £0 £0 £0 £15 Household £15 £10 £10 £5 £50 Laundry and dry-cleaning £3.25 £3.25 £3.25 £3.25 £10 Other debt payments £25 £25 £25 £25 £100 School expenses £50 £50 £50 £50 £200 Telephone bill £25 £0 £0 £0 £25 Water £2.50 £2.50 £2.50 £2.50 £10
Internal Auditors in Banking
Internal Auditors in Banking Matthew Cassar Introduction Auditing is the inspection and verification of the accuracy of financial records and statements. Banks conduct internal audits of accounting records and procedures. Its task is to examine the risks that the bank faces, to review the adequacy of the controls in place to protect it from those risks, and to verify that the controls are working as intended. This report aspires to outline the purpose, roles, and standards involved in the internal auditing of banks. The importance of internal auditing Banks take on the role of securing and investing its customer's funds; if they gain a reputation for being untrustworthy then customers will move onto another competing bank. Also, banks are to comply with a mandatory external audit which is sent in to confirm the findings of the internal audit and to make sure everything is correct. The external auditors present an audit statement that is made public in the bank's annual report. Thus, it is better off for the bank to het their books straight the first time rather than being caught in the external audit. The role of the internal auditor The keys to an internal audit are independence, risk, and control. Independence from the rest of the bank is essential. This is because an auditor sometimes has to comment on unsatisfactory procedures. This may be compromised if conflict
