...D1- evaluates the appropriateness of business information used to make strategic decisions. The two functions I am going to be talking about is finance and marketing for my organisation which is H&M. Marketing: Marketing is the action or business of promoting and selling products or services, including market research and advertising. Market research is the action or activity of gathering information about consumers' needs and preferences. H&M need to use market research in order to improve their business and make further plans for the future. Also use advertising to promote their products. It is vital for H&M to do this because they need to know what their customers like and dislike also if there is an issue, what the issue is and how they can overcome it. They need to sell their price at the right price so it is affordable for customers and so on. H&M need marketing to find out customers reviews. This is because they need to know what to improve in and what to change in order to make the business even better and more successful in the future. In H&M the marketing manager needs customer’s views. The customers need satisfaction and complaints which allows the business to expand. If this is not done then customers will not want to come back because they will think H&M are not bothered about their customers and only their products which will put H&M’s name at risk for this reason they need to consider customers views and try and change where they...
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...The Role of Accounting Accounting is often called “the language of business.” Why? Because it communicates so much of the information that owners, managers, and investors need to evaluate a company’s financial performance. These people are all stakeholders in the business—they’re interested in its activities because they’re affected by them. In fact, the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information. Obviously, you wouldn’t try to run an organization or make investment decisions without accurate and timely financial information, and it’s the accountant who prepares this information. More importantly, accountants make sure that stakeholders understand the meaning of financial information, and they work with both individuals and organizations to help them use financial information to deal with business problems. Actually, collecting all the numbers is the easy part—today, all you have to do is start up your accounting software. The hard part is analyzing, interpreting, and communicating the information. Of course, you also have to present everything clearly while effectively interacting with people from every business discipline. In any case, we’re now ready to define accounting as the process of measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. Fields of Accounting Accountants typically work in...
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... Accountants measure a business entity's income, expenses and changes resources. Back in the day, prior to the widespread use of spread sheet and computer applications, Accountants used journals and ledgers in which they recorded business transactions. Hence the term keeping the books. As computer applications became main stream, this keeping of the books Accountants do, has gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born ADVANTAGES * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement of account; * With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system; * More timely information can be produced; * No more manual processing of the data- all automatically been posted to the various ledgers/accounts and * Many types of useful reports can be generated for management to make decisions 12.3 NEED AND REQUIREMENTS OF COMPUTERSIED ACCOUNTING The need for computerised accounting arises from advantages of speed, accuracy and lower cost of handling the business transactions. l Numerous Transactions The computerised accounting system is capable of handling large number of transactions...
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...Early Accounting * Accountancy has its roots in the earliest history of civilization. With the rise of agriculture and trade, people needed a way to keep track of their goods and of transactions. Around 7500 B.C., Mesopotamians began using clay tokens to represent goods, such as animals, tools, food items or units of grain. This helped owners keep track of their property. Instead of counting heads of cattle or bushels of grain every time one was consumed or traded, people could simply add or subtract tokens. Different shapes were used for different goods. Around 4000 B.C., the Sumerians began placing these tokens in sealed clay envelopes. Each token would be stamped into the clay of the outside of the envelope, so the owner would know how many tokens were inside, but the tokens themselves would be kept safe from tampering or loss. This practice of pressing the tokens into the clay may have been the earliest genesis of writing. A few hundred years later, more complex tokens began to be used. These tokens had special markings to denote different units or types of goods. Starting around 3000 B.C., the Chinese developed the abacus, a tool for counting and calculating. * Basic principle Revenue principle The revenue principle, also known as the realization principle, states that revenue is earned when the sale is made, which is typically when goods or services are provided. A key component of the revenue principle, when it comes to the sale of goods, is that revenue is...
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...or clerks, bookkeepers perform some of the same daily tasks as do accountants and certified public accountants. Many bookkeepers work as freelancers for small businesses in need of financial recordkeeping. Bookkeepers maintain daily accounting records, posting debits and credits, generating invoices for clients and checks for vendors as well as handling payroll. Many small business owners often double as bookkeepers. Bookkeepers typically lack the education of an accountant or CPA, as they gain on-the-job experience. Professional organizations for bookkeepers help to improve professional recognition for bookkeepers by accounting professionals as well as providing certification programs of abilities and skills. Accountants Accountants have a four-year college degree. While many accountants have an educational background in accounting, some are more general business majors. Companies that generate more than a million dollar in sales each year might have an accountant on staff or hire the services of a professional accountant from an accounting firm managed by a certified public accountant. As the company grows, the accounting department expands to handle the increased fiscal responsibilities within the organization. Accountants work with accounting clerks and technicians who handle daily financial entries. Accountants oversee or perform billing, make general ledger entries, review accounts payable activity completed by clerks or...
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...Purpose Of Accounting I have been appointed to help you in running your shop ‘Capello’s Designs’. The reason for this task, of helping you run your shop, is to assist you in accounting. Failures in keeping track of your accounting in the past has been a drawback to you and in general, failure to accurately account has been tragic for big name organisations too such as Woolworths, Comet. I will be educating you about the importance of accounting with the following report I have written for the business. I will be talking about accounting and the importance and purposes of it. The importance of accounting in any business is second to none. The reason behind this varies from forgetting to pay the bills to getting in trouble with HMRC (HM Revenue and Customs). But before this, the purpose of accounting is to keep up to date with the business’ expenses and profits. One must be accurate in order to keep their business running neat and smooth. Business owner or someone put in charge by the business owner i.e. bookkeeper must record every penny coming into the business and all money going out. If a business fails to do so, they will pay the consequences from running after payments to getting in trouble with hierarchy such as HMRC. If one cannot keep track of it accurately one will ultimately end up paying invalid taxes i.e. paying less or more than needed. Good management in the accounting sector in your business will enable it to grow and expand. It will ultimately allow you in making...
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...tAccounting Basics Important Disclaimer Important Note: The text in this chapter is intended to clarify business-related concepts. It is not intended nor can it replace formal legal advice. Before taking any actions relating to your business, always consult your accountant or a business law/tax attorney. The Need for Accounting Every organization needs to maintain good records to track how much money they have, where it came from, and how they spend it. These records are maintained by using an accounting system. Accounting for Windows Accounting Basics • 5 These records are essential because they can answer such important questions as: • Am I making or losing money from my business? • How much am I worth? • Should I put more money in my business or sell it and go into another business? • How much is owed to me, and how much do I owe? • How can I change the way I operate to make more profit? Even if you do not own or run a business, as an accountant you will be asked to provide the valuable information needed to assist management in the decision making process. In addition, these records are invaluable for filing your organization’s tax returns. The modern method of accounting is based on the system created by an Italian monk Fra Luca Pacioli. He developed this system over 500 years ago. This great and scientific system was so well designed that even modern accounting principles are based on it. In the past, many businesses maintained their records manually in books...
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...Accounting Matt Beard Strayer University Accounting is an interesting world of keeping financial accounts. The ability to log and account for financial activity of a business goes a long way in ensuring its success. Developing a standard for measuring and displaying activity within a business is paramount when attempting to attract investors or customers. An investor needs to see that a business is financially sound and stable. A customer needs to see that the business is run in a reasonable and responsible way. What developed out of those needs are financial statements. Guided by the government, and pushed by market forces, businesses decided that a few standard documents would be required to provide clear and concise records of financial activity. The primary financial statements are: Balance Sheets, Income Statements, and Cash Flow Statements. * Balance Sheets * Provides detailed information about a company's assets, liabilities, and owner's/shareholder's equity. * Assets are things that a company owns that have value. * Liabilities are amounts of money that a company owes to others. * Equity is the amount owners invested in the company plus or minus the company's earnings or losses since the start of the company. * The balance sheet shows a snapshot of assets, liabilities, and equity at the end of the reporting period (Beginners’, ND). * Income Statements * Shows how much revenue a company earned over a specific...
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...Accounting Basics Important Disclaimer Important Note: The text in this chapter is intended to clarify business-related concepts. It is not intended nor can it replace formal legal advice. Before taking any actions relating to your business, always consult your accountant or a business law/tax attorney. The Need for Accounting Every organization needs to maintain good records to track how much money they have, where it came from, and how they spend it. These records are maintained by using an accounting system. Accounting for Windows Accounting Basics • 5 These records are essential because they can answer such important questions as: • Am I making or losing money from my business? • How much am I worth? • Should I put more money in my business or sell it and go into another business? • How much is owed to me, and how much do I owe? • How can I change the way I operate to make more profit? Even if you do not own or run a business, as an accountant you will be asked to provide the valuable information needed to assist management in the decision making process. In addition, these records are invaluable for filing your organization’s tax returns. The modern method of accounting is based on the system created by an Italian monk Fra Luca Pacioli. He developed this system over 500 years ago. This great and scientific system was so well designed that even modern accounting principles are based on it. In the past, many businesses maintained their records manually...
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...concerned with development and maintenance of accounting records. It is the "how" of accounting. | Accounting is abstract and theoretical. It is concerned with the "why", in other words the reason or justification for any action that’s implemented. | Bookkeeping is a part of accounting. It is mainly a mechanical aspect of recording, classifying and summarising transactions. | Accounting is a four-stage process of recording, classifying, summarizing and the interpretation of the financial statements. | The process of bookkeeping does not require any analysis. | Accounting uses bookkeeping information to interpret the data and then compiles it into reports to present to management. | It records incoming transactions (received payments from customers, etc.) and outgoing transactions (paying for specific bills on the correct time, etc). | They usually deliver the business results in the form of reports. Management can see whether the company is successful or not and with the help of the analysis they can see where the problems come from in case of negative results. | There are two basic kinds of bookkeeping: single entry bookkeeping and double entry bookkeeping. | The accounting department also does preparations of a company’s budgets and plans loan proposals. | The advantages and disadvantages of computerized accounting system: Advantages | * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement...
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...career that places you on the path to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada...
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...Financial Accounting ACCT212 – Week 1 Live Lecture Goals of this Week’s Lecture • Present you with the information you need to begin succeeding in Financial Accounting • Provide a forum for question and answer regarding this week’s material • Begin satisfying our weekly TCO and key concepts ACCT212 Week 1 Lecture 2 How to be Successful? • All the information you need to be successful in this course comes from four primary sources: 1. 2. 3. 4. Your textbook eCollege This lecture, and Your instructor ACCT212 Week 1 Lecture 3 Financial Accounting – Week 1 • • • • • • • • • • Terminal Course Objective for the Week Key Concepts of the Week Business Decisions Accounting is the Language of Business Accounting Principles and Concepts The Accounting Equation The Financial Statements Relationships Among Financial Statements Account Types Getting Started on Project 1A ACCT212 Week 1 Lecture 4 TCO of the Week • TCO 1: “Given financial statements, explain the financial statements’ purpose and components relative to accounting history, assumptions, concepts, principles, and standards.” ACCT212 Week 1 Lecture 5 Key Concepts of the Week • Use accounting vocabulary • Learn accounting concepts and principles • Apply the accounting equation to business organizations • Evaluate business operations • Use financial statements ACCT212 Week 1 Lecture 6 Business Decisions • Suppose you are an investor with $10,000 to invest in any company you choose...
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...Introduction Accounting provides companies with various pieces of information regarding business operations. It is often conducted by a company’s internal accounting department and reviewed by a public accounting firm. Small businesses often have significantly less financial information recorded during the accounting process. However, business owners often review this financial information to determine how well their business is operating. Accounting information can also provide insight on growing or expanding current business operations. A common use of accounting information is measuring the performance of various business operations. While financial statements are the classic accounting information tool used to assess business operations, business owners may conduct a more thorough analysis of this information when reviewing business operations. Financial ratios use the accounting information reported on financial statements and break it down into leading indicators. These indicators can be compared to other companies in the business environment or an industry standard. This helps business owners understand how well their companies operate compared to other established businesses. Business owners often use accounting information to create budgets for their companies. Historical financial accounting information provides business owners with a detailed analysis of how their companies have spent money on certain business functions. Business owners often take this accounting information...
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...Business Analysis and Valuation Report Prepared By: Version # Updated on ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail Address | | | | Document Name | | Date Created | | Milestone 1 date submitted | | Milestone 2 date submitted | | Milestone 3 date submitted | | Finalization date | | | | | | | | REPORT VERSION RECORD The Business Analysis and Valuation Report is a managed document with tracking of versions, changes, and release dates for each of the three milestones. Version Name | Version Number | Date | Author(s) Name(s) | Change Description | | | | | Document created | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED: DATE:___/___/___ ...
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...Accounting FOR DUMmIES 4TH ‰ EDITION By John A. Tracy, CPA Accounting For Dummies®, 4th Edition Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2008 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, or online at http:// www.wiley.com/go/permissions. Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All...
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