Financial report. I will be talking about the financial performance of my business including how a profit and loss account works and what my account tells me.
Example Of A Financial Report My business is a service for the community. I wash cars for a small fee round my local area and I am the only person who is involved and carries out my business. In this statement I will be talking about the financial performance of my business including how a profit and loss account works and what my account tells me. Financial performance is key to have a successful business so this means that it is key to use profit and loss accounts and also balance sheets. With a profit and loss account the main thing you can use it for is to see if you are making a profit or a loss and then from this you can decide whether the business is worth carrying on or expanding or whether that you should just stop with the business because its making a loss/ not viable. A balance sheet will tell you all your assets and liabilities and will list them and tell you how much they are worth/ costing you, you can also find out your working capital and also find out whether it is viable for you to draw more money out of the business or whether you need to be taking less money out of the business (your drawings). As I said earlier a profit and loss account can be used to show whether your business is making a profit or a loss and then to decide what you should do next. For my business J.G.WASHES my profit and loss account shows that I made a profit of £85.33 in my
Financial Products and Providers
The financial products Current accounts and deposit accounts A current account gives the customer instant access to his or her account. Most current accounts provide customers with a wide range of services for example the cheques as well as other services offered by the financial provider. A cheque which states the amount of money and the customers signature which is drawn by the banker to pay a certain amount of money to a specific person also known as the bearer. A cheque is an unconditional method of payment which depends on certain conditions which have to be met. The cheques must be written on with a pen, which the ink must be black and brown and must be signed by person paying the money. The only way the money will be paid is when it is has been presented to a bank. The sum of money must be presented in words on the cheque must be paid out to someone. The current account holder may even have a card mostly known as a cheque guarantee card. The cards guarantee certain amounts of money. Many of the cheque guarantee card can be used as a debit card to buy goods and services. For example a customer is in a retail shop the customer gives the cheque guarantee card to the employee on the till to swipe the card through the electronic funds transfer terminal. The card only can be used once the pin is typed in which the customer has. Then the transaction is complete. These
Enron Case Analysis
Enron Case Analysis Table of Contents .0 Executive Summary 3 2.0 Company History 4 3.0 Organizational Mission 4 4.0 Market Conditions 5 5.0 Accounting Practices 6 5.1 Bonus Program 6 5.2 Mark to Market System 6 6.0 Culture 7 6.1 Financial 7 6.2 Supervision 8 7.0 Affects on the Local Community 8 7.1 Worldwide Effects: 8 7.2 Effects in the Industry 9 8.0 Underlying Issues 10 9.0 What went Wrong 11 9.1 Recommendations 11 0.0 Works Cited 13 Executive Summary This case analysis will talk about the local, state, national, and global effects of Enron's corporate decisions that led to the company's bankruptcy in 2001. The case will give an in depth discussion about Enron and their business practices. It will also explain the social environment the company faced and what caused the decisions that led to Enron's demise. The case will first give a background of Enron and the electricity industry, then go on to explain how they got into the situation they faced. The case will then describe the corporate culture of the company as well as the major cohorts involved in decision making. Some of these cohorts include the top executives, shareholders, and board members. The case will then discuss Enron's accounting practices and
'Historic cost accounting is the worst possible accounting convention, until one considers the alternatives.'
AF 301 Financial Accounting II Historical Costing Name: Shengheng Guan Student No.: M207952 4 December 2004 Table of Contents . INTRODUCTION ...................................................................... 3 2. THE LIMITATIONS OF HISRORICAL COST ACCOUNTING ............. 3 3. THE ALTERNATIVES UNDER CONSIDERATION 3.1 CURRENT PURCHASING POWER ACCOUNTING ......................... 4 'Historic cost accounting is the worst possible accounting convention, until one considers the alternatives.' . INTRODUCTION The most commonly encountered accounting convention is the "historical cost accounting". The creation of this accounting convention can be traced to the work of a Franciscan monk by the name of Pacioli in the year 1494. Historical cost accounting sets prices on the basis of original costs, where the cost of assets is measured by their depreciated historic cost. Therefore, no account is taken of changing prices in the economy under historical cost accounting. Over time, numerous other accounting theories have been developed by a number of well respected scholars and historical cost accounting has been criticised on the basis that it has too may shortcomings, with particular emphasis on its failing to provide useful information in times of rising prices. However, many of the proposed methods have been rejected by the accounting profession. In the following
The business plan
. Introduction This portfolio work will enable me to learn how to set up a business. And we have to do many things to set it up. And I want to set a tuck shop in the boarding house which is near the school and what I have to do is get the tuck shop started. I also have to write a business plan for it to make sure that I know what is I doing. A business plan will also allow me to minimize risks of failure; failure can be very costly to a business. I set it up because the boarders in the house always go to the supermarket in MP .If I haven't written a business plan it will be an increase in risks and decrease in success in rate. 2. My business In the school, the student will get pressure from their studies. so by having some food and drinks to let them relax.. that's why tuck shops are very popular in school even in boarding house. From the result of my questionnaires I got over 50% boarders from the boarding house said they strongly advise to open a tuck shop in the boarding house. So I become confident of the demand of the house. The man of my tuck shop called "Come On". This type of business will be sole trader. This business only owned by me and I need to face "Unlimited liability" which means I face all the business risk and has to find all the capital to start the business. We will be selling many product including ice cream. "Come On" also selling smile and friendly
Accounting Concepts and Conventions
A1 - Accounting Concepts and Conventions There are some important concepts which are taken for granted in preparing accounts. A statement of accounting practice (SSAP 2 Disclosure of accounting Policies) describes 5 concepts as fundamental accounting concepts: they are; > Prudence > Accruals > Going Concern > Consistency > Materiality The Prudence Concept: Very often an accountant has to make a choice as to which figure he will take for a given item. The Prudence concept means that normally he will take the figure which will understate rather than overstate the profit. Alternatively, this could be expressed as choosing the figure which will cause the capital of the firm to be shown at a lower amount rather than at a higher one. This could be said to be to make sure that all losses are recorded in the books, but that profits should not be anticipated by recording prematurely. For example, cookers of Hotpoint are stated in their balance sheet at their actual cost £150 rather than their selling price of £200. This is simply the aspect of the prudence concept; to value the machines at £200 would be to anticipate making a profit before the profit has been realised. The other aspect of the prudence concept is that where loss is foreseen, it should be anticipated and taken into account immediately. If a purchases stock for £1250 but because of a sudden slump in the
Personal budget
A personal budget is a plan in which individuals or family money is spent over a period of time. A personal budget is used to plan their money in order to avoid spending more money then they earn. A personal budget is a plan in which individuals could use so they can make the right decisions, choices and use of their income and expenditure. By using a personal budget it can help the individual or family make sure that they have enough money for their expenditure. You can plan your personal budget on a weekly, monthly or an annual bass. The personal budget will include the following: Income The budget will need to show the amount of income you earn for the following budget? E.g. weekly, monthly or annual. The income will only be the amount you have to spend once your salary deductions have been made. You should only put the amount of income you would likely get because your income could very from time to time e.g. do overtime, earn extra cash, unexpected bills or emergencies. The types of income that you could have could be the following: * Wages or salary, after deductions. * Borrowed money, such as loans or credit to buy gods. * Regular allowances. * Gifts and inheritance. * Fees earned. * The sale of personal items. * State benefits. * Grants. * Interest from savings. * Return on investments. Expenditures Once you have assessed your income then you should then
Financial Management
Financial Management > Understand the meaning of financial management > Know about the various aspects of financial management > Know about the different terms used in financial management > Learn about the importance of raising funds and fund allocation through budgeting Introduction Every organization, irrespective of its size or ownership pattern, has to manage its finances. The overall objectives of an organization cannot be achieved in the absence of financial management. Many organizations fail in their objectives because of financial mismanagement and this failure rate is quite high among the small business enterprises. Hence, financial management is vital for all types of organizations, profit making as well as non-profit making. In case of non-profit making organizations also the effectiveness and performance depends on their financial resources management. Financial Management When we attempt to analyze the financial functions of an organization we find that funds (capital) have to be: > Procured > Allocated for various activities > Used effectively > Monitored Further, the results of all these have to be recorded also. All this brings to fore a three dimensional financial process: > Financial management > Management Accounting > Financial Accounting > All these three are at the same time separate yet overlapping areas of thee financial functions of
planning personal finances
3. Introduction: why it's important to plan 4. Sources of advice for financial planning 5. Savings accounts and institutions 6. Methods of borrowing with appropriate uses for the borrowing 7. Methods of ensuring accuracy of financial records 8. about tax 9. Calculating tax 0-11. bank statements 2. Receipts 3. Cheque 4. Pay slips 5. Invoices 6. Case study 7. Budget for Hardeep 8-19. Justification for suggested expenses It is important to plan for personal finances because it helps you in the future with lots of important money needs. For example you may need to buy a car and for this you would need money as well as having spare cash for yourself. If you plan your money financially and keep any spare cash in a savings account you can reach your goal of having a car and spare cash. This is only one good reason for planning personal finances there are more crucial points too, such as unexpected money needs e.g. you may have a flood in you house/ apartment/flat you would need to have money to have it all sorted out. If you don't monitor your expenses you can run into debt. This guide will give you information on personal finance and help you when you may want to start budgeting. When you are planning financially it would be best to get advice, this is because if you get a professional opinion it would help you get the best financial advice available. You can
computer system
. Twos compliment Two's complement is the most popular method of signifying negative integers in computer science. It is also an operation of negation (converting positive to negative numbers or vice versa) in computers which represent negative numbers using two's complement. Its use is ubiquitous today because it doesn't require the addition and subtraction circuitry to examine the signs of the operands to determine whether to add or subtract, making it both simpler to implement and capable of easily handling higher precision arithmetic. As well, 0 has only a single representation, obviating the subtleties associated with negative zero. In the two's complement representation, the most significant bit of a signed binary value indicates the sign. If the sign bit is zero, the value is non-negative binary number. If the most significant (leftmost) bit is 1, the value is negative: the bits contain a two's complement version of the value. To obtain the value of a negative number, all the bits are inverted then 1 is added to the result. If all bits are one the value is negative one; if the sign bit is on but the rest of the bits are off the value is the most-negative number. The most negative number cannot be represented as a positive number with the same number of bits. A signed 8-bit binary numeral can represent every integer in the range -128 to +127. If the sign bit is 0,
