are Profit and Loss Account ( Income Statement ), Balance Sheet ( Statement of Financial Standing ) and Cash Flow Statement. The financial statements provide information about an entity's: [IAS 1.9] * assets * liabilities * equity * income and expenses, including gains and losses * contributions by and distributions to owners (in their capacity as owners) * cash flows. A complete set of financial statements includes: [IAS 1.10] 1. a statement of financial position (balance
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UNIT 3 FINANCIAL FORECASTING FOR BUSINESS TASK 1 Start-up costs are linked and associated with setting-up a business such as legal fees, purchasing of equipment, rented property deposit. Start-up costs means a different sort of costs, which a new business owner should get in so that the business can exist. Operating costs are expenses that relate to a business activities and they are divided into fixed and variable costs. Different businesses have different costs associated with them. Variable
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(1) Uses of Accounting Information and the Financial Statements a. Accounting as an Information System i. Accounting is an information system that measures, processes, and communicates financial information about an economic entity. Accountants focus on the needs of decision makers. ii. External decision makers use financial accounting reports to evaluate how well a business has achieved its goals. These reports are called financial statements. iii. The primary external users of accounting information
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F.R.A SS7 Two systems worldwide R22: Financial Statement Analysis: An Introduction R23: Financial Reporting Mechanics R24: Financial Reporting Standards The Financial Accounting Standards Board (FASB) The Statement of Financial Accounting Standards (SFAS) R25: Understanding the I/S R26:Understanding the B/S R27: Understanding the C/F R28: Financial Analysis Techniques R29: Inventories R30: Long-Lived Assets R31: Income Taxes R32: Long-Term Liabilities and Leases U.S.
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1. Task 1 1. Different parties involved in the decision making process |Parties |Information required | |Parties in relation to financial Management |Different investment appraisal techniques | |Board of directors |Different sources of investment opportunities | |Financial Managers
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Question 2 Cash Flow Statement Cash flow statement is an account of how revenue moves into and out of a business enterprise over a certain amount of time. They can be in the shape of real cash or bills. It is an instrument of predicting the status of a business and the availability of cash in the firm. A cash flow statement comprises of both cash outflows and cash inflows. The sources of cash inflows include new debts, new investments, operating profits and the sale of fixed assets. Cash outflows
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objectives of financial reporting provide information that is useful to creditors, investors, and any other external users in making rational decisions that involve investments, and credits. Financial reporting helps present and potential investors, creditors, and any other external users to assess the amounts, timing, and uncertainty of prospective cash receipts from dividends, interest, proceeds from a sale, redemption, and maturity of securities and loans. Another objective of financial reporting
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1. What are the four major types of firm in the U.S, how are they defined, and what are the key differences between them? I understand from the course text that within the context of corporate finance the four types of firms in the U.S. are sole proprietorship, limited liability companies, partnerships and corporations (Berk & DeMarzo, 2011). These four firms are fundamentally different in their makeup and operations. To begin with a corporation is a legally defined artificial being with legal powers
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“General Banking and Cash Management Processes: A Study of Trust bankLimited”. Letter of Transmittal September 2, 2013. Ms. Tamanna Islam Shaon Lecturer Bangladesh University of Business and Technology Subject: Financial Performance Evaluation of Mutual Trust Bank Limited. Dear Sir, With due respect, I would like to thank you for assisting me to prepare the internship report. This task has given me the opportunity to explore the activities of banking sector. The
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that is useful to users and that is decision relevant. The statements should communicate information about: 1. The entity’s economic resources and claims to those resources 2. Changes in those resources and claims Sometimes financial statements are prepared with biased information to depict the company in its best light through aggressive financial reporting (opposite to conservative financial reporting). This process may involve overstating assets or net income, understating liabilities/expenses
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