Nobody downloaded yet

Financial and accounting - Essay Example

Comments (0) Cite this document
Summary
Financial accounting can be defined as an accounting branch the tracks all the financial transactions of a firm, thus the financial performance of a company. Despite the fact that financial accounting and management accounting may be similar in certain ways, the two branches of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
Financial and accounting
Read TextPreview

Extract of sample
"Financial and accounting"

Download file to see previous pages Second, in financial accounting, financial statements are deemed important while users of management accounting focus on accounting reports as the most important products (Stolowy & Lebas 2007). Third, in financial accounting, the IFRS or IAS determine what is supposed to be included in financial reports and statements while in management accounting, managers determine what they want captured in accounting reports. Fourth, financial accounting focuses on historical information whereas management accounting basically utilizes forecasts or focus on future information (Rajasekaran & Lalitha 2011). Fifth, while financial accounting put emphasis on data reliability and objectivity, management accounting emphasizes on relevancy of data. Sixth, financial accounting yields reports about the entire company while management accounting yields reports that suit the needs of the management. Seventh, financial data are usually subject to audit verification while management data are no subject to auditing process (Rajasekaran & Lalitha 2011). Companies are required to prepare financial statement at the end of their trading periods to disclose information that is deemed crucial for various users of financial statements.
1) Potential investors: Potential investors require financial statements to help them assess financial viability of putting their investment in a company. Based on the information disclosed in the financial statement, for instance profits in profit and loss account, investors are able to forecast future dividends. Also, potential investors may use financial statement figures to gauge the risk associated with investing in a particular company (Gibson 2009). For instance, investors may use high fluctuation in the reported profits of a company as an indication of high risk. Consequently, financial statements assist prospective investors in making investment decisions.
2) Shareholders: Financial statements assist ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial and accounting Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1689796-financial-and-accounting
(Financial and Accounting Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/finance-accounting/1689796-financial-and-accounting.
“Financial and Accounting Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/finance-accounting/1689796-financial-and-accounting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Financial accounting
...?Financial accounting Contents Financial accounting Contents 2 Introduction 4 Objectives of the Project 4 Scope of the Project 5 Part A 5 Background of Sainsbury & Tesco 5 Comparative Price Movements 6 6 Comparative Ratio Analysis 7 Profitability Analysis 8 Management Efficiency Analysis 9 Liquidity Analysis 11 Investment Analysis 12 Part B 14 Findings 14 Recent Developments 15 Recommendations 16 Part C 16 About IASB & FASB 16 Transitional Reliefs 17 Conclusion 18 References 19 Appendices 23 Introduction This project is divided into three parts. The first part includes the comparative analysis of the two UK-based companies- J Sainsbury Plc and Tesco Plc, based on the financial statements and other relevant information provided... in the...
16 Pages(4000 words)Essay
Financial accounting
...?Financial Accounting What is a manufacturing account?  Select one:  A) A manufacturing account shows the cost of goods sold in a manufacturing business.  B) A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business.  C) A manufacturing account is the personal account of a manufacturing business in the payables ledger.  D) A manufacturing account serves to calculate the direct manufacturing costs during the year, the amount of which is then transferred to the trading account.  Answer: Option B (A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business). Though option D is also the correct answer... be the...
4 Pages(1000 words)Assignment
Financial and Accounting Questions
...?PLEASE ANSWER THESE QUESTIONS SEPERATELY Table of Contents Table of Contents 2 SECTION A 3 a.Usefulness of financial ments in decision making process 3 b.Fundamental properties of reporting information identified by the IASB Framework 4 SECTION B 6 a.Liability as Regards to IASB Framework 6 b.Recognition Criteria under IASB Framework 7 c.Disclosure of absence of earthquake insurance by a company 7 References 9 SECTION A a. Usefulness of financial statements in decision making process Accounting is the process of representing financial information of any organization in the form of financial statements. Financial statements like balance...
6 Pages(1500 words)Essay
Financial and Accounting Regulation: Turner Review
...? Financial and Accounting Regulation: Turner Review Financial and Accounting Regulation: Turner Review Regulation refers to managerial laws and rules that encompasses rights and assigns duties. Different organizations have different ways of developing their laws and policies that are aimed at improving the functioning of the organization. Such regulations can be government formulated, private companies or by social, professional and trade unions. Regulatory bodies have been in existence for several years; regulations can be academic regulations, financial regulation, building and construction regulation, environmental regulation as well as health...
8 Pages(2000 words)Essay
Financial And Accounting Challenges Faced By Businesses From Emerging Markets In Meeting International Accounting Standards. Companies In Azerbaijan
...?Research proposal: Financial And Accounting Challenges Faced By Businesses From Emerging Markets In Meeting International Accounting Standards: With Special Reference To Companies In Azerbaijan. Background: In the year 2005 it was observed that companies in many countries started adopting International Financial Reporting Standard (IFRS). Countries like South Africa, Australia, and New Zealand etc were among the first to adopt IFRS. The countries of The European Union (EU) are now required to follow IFRS. Emerging economies like China, Azerbaijan etc. adopted IFRS. China had given January 2007 as deadline for implementing IFRS. Gradually all the countries in the world...
9 Pages(2250 words)Research Proposal
Financial Accounting
...Company to the true picture of the company’s transactions for the five years. The total revenue will read less the exaggerated amount. The false amount is ?3 million for the sale of laptops, ?25,000 involving Witney Ltd, and ?960000 involving PC4U Ltd. The amounts add up to ?3985000. This will now match the analysts’ forecasts for the company. According to the analyst, the company has expected revenue of ?4000 million and operating profit of ?50 million. The finalizing financial statement for the year ended 31 March, which is false following creative accounting and earning management will change to the actual figure. The cause of the irregularity is motivated by the remuneration package of the board of...
3 Pages(750 words)Assignment
Financial accounting
...Task: Introduction This assignment presents the following issues: when to recognize revenues as d in the IAS 18; the application of the IAS 18 to the case of the IBI Ryan PLC; and a discussion of the meaning of creative accounting and earnings management, in relation to IBI Ryan’s case. Revenue recognition Revenue is “the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.” An income can be described as a gross inflow of financial benefits, less cost of sales or /and other expenditures such as operating costs and tax...
5 Pages(1250 words)Assignment
Financial Accounting
...FINANCIAL ACCOUNTING TESCO TESCO is a well diversified company working in many different ventures; it has over the years created a great deal of value in the eyes of their customers. “Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major non-food business, personal finance and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal...
4 Pages(1000 words)Essay
The Role of Financial and Accounting Management
...Performance Measurement: The Role of Financial and Accounting Management” "Management accounting produces information for managers within an organization. It is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organization objectives" (Horngren, Sundem, & Stratton, 2005, p. 5). Budgets are being prepared in order to attain the financial goals by proper identification, measurement, accumulation, analysis, interpretation and communication of relevant information (Horngren, Sundem, & Stratton, 2005, p.5). Management accounting handle the companies’ decision...
4 Pages(1000 words)Essay
Financial Accounting
...can be paid of whenever they are due. The profitability ratios are used to gauge the overall profitability of a company relative to its level of sales. The operating profit margin of the company registered an increase from 27.47% in 2010 to 31.98% in 2012. The operating profit increased on account of considerable decrease in the unusual expenses of the company. This shows that the overall operational efficiency of the company has not improved and the increase in operating margin is the result of a decrease in unusual expenses of the company. Profit margin of the company witnessed a considerable increase from 11.09% in 2010 to 18.22% in 2012. The increase in operating profits of the company translated into better net...
4 Pages(1000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Financial and accounting for FREE!
Contact Us