TMA 03
B120
08/01/2014
Word count
Part1:916
Part2:174
Total:1143
Customs
Part1 Questions 1A and1B……………………………………………………………………….3
Part1 Questions 2A and 2B………………………………………………………………………4
Part1 Questions 3A and 3B………………………………………………………………………5
Part1 Question 4……………………………………………………………………………………..6
References………………………………………………………………………………………………7
Part2……………………………………………………………………………………………………….8
PART 1
Question 1A
A profit and loss account is supposed to show a businesses’ income and expenditures and calculate the company’s net profit or loss based on the difference between those numbers. It is really useful in determining past performance and to try to predict future
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Next what catch my eye was an increase of amount of money owned by the business to the Creditors so this will be money leaving the business within the near future and if this continues to raise then the business will end up in huge debts. I have find out some improvements as well such as an increase in the amount investments in fixed assets, which could mean the business is investing more or more of the assets were sold from last year which is good news for a business.
Question 4
From analyzing the business using all the above tools my advice is not to concentrate just on a profit but to deal with small but dangerous issues like: stoke leftovers, paying out debts on time (paying upfront will make your business more reliable for banks). I have come to this conclusion because the business is making less profit from the year before and also there is slight increase in some costs such as wages etc. I would also be concerned that the increase in barrowing is a bit dangerous which can lead to the business being closed in the future or to expend it to the new level. If these patterns continue (increasing value of business rising investments in fixed assets) into 2014 the business could successfully start to pay off the overdraft. I think Michael will be able to cope with the ongoing debt.
References
Day J. and Krakhmal V. (2006) fourth
By Thomas Ahrens (London School of Economics), and Christopher Chapman (University of Oxford), from The Contemporary Accounting Research Vol. 21 No. 2 (Summer 2004) pp. 271–301.
A profit and loss account is intended to show a business its income and expenditures and calculate the company’s net profit or loss based upon the difference between those figures. It is extremely useful in determining past performance and to try and predict future results. It enables a business to see what changes could make to improve on its profit. It also give enough information to help a business to set targets.
A few years ago I got involved in marketing an expensive brand of vacuum cleaners called Kirby. The product was well designed, of high quality and had many features that were lacking in other leading brands. The marketing strategy used were a combination of selling orientation and product orientation, where the business owners assumed that a sales force would be able to sell the product as long as the right approached was used.
As a result, although the company’s changes in accounting policy were not easily to be understood by average investors, the company has shrewd accounting, operating, financing and investing moves made by senior management. So I guess the company would witness positive improvement in the
I am sorry to hear about the issues you are having at your branch; after careful analysis I have decided to discuss stakeholder analysis to look at the issues and offer recommendations on how they could be remedied.(
Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin.
course instructor Ms. Tarana Majid orally authorized the task of preparing the report to a group of student. She gave this report to learn the way to analyze the financial statements. To follow the syllabus of our subject so we have to do some relevant study based on our report. That’s why this topic comes forward.
Anwer S. Ahmed Ernst & Young Professor of Accounting Texas A & M University Scott Duellman Assistant Professor of Accounting St. Louis University March 2012
The field of accounting is governed by quite a number of concepts and rules. Some of these rules and concepts include but they are not in any way limited to the revenue recognition principle, the matching concept and the going concern principle. In this section, I will concern myself with the matching concept and its relevance.
Collier, P.M. & Kizan, S.M. (2013). Accounting for Managers. Mississauga, ON: John Wiley & Sons Canada, Ltd.
Gilbertson, C. B., & Lehman, M. W. (2011). Century 21 accounting: General journal, 2012 copyright update. Mason, Ohio: South-Western.
Copyright 2011 by Applied Accounting Analytics. All rights reserved. Reproduction or translation of this book beyond that permitted by the applicable copyright law without Applied Accounting Analytics’ permission is prohibited. Requests for permission to reprint or for further information should be directed to bstanko@luc.edu or tzeller@luc.edu.
decide what course of action to take in light of the company’s imminent financial difficulties. On
Income statements, balance sheets, statements of cash flows, and financial statement ratios have one thing in common: they are all ways that investors, managers, and owners can look at a business from a financial standpoint and decide what they should do next. Is it time to expand the business? Should we just keep doing what we’re doing because it works? Is it time to close the doors? All of these questions and more can be answered by reviewing the aforementioned financial documents. In this paper, I will explore these documents, discover how they differ, and how important business decisions are made based on what they say.
Batsleer, J. et al, (2001), _B551 The Manager's Help File_, The Open University Business School_,_ Milton Keynes.