Statement of Cash Flow The statement of cash flow is one of the four main financial statements. It summarizes the flow of cash in a firm over a given time period. A firm’s cash flow could be divided into three categories: operating cash flow, investment cash flow, and financing cash flow. The operating cash flow is the flow of cash that is directly related to the production and sale of the firm’s goods and services. However, the investment cash flow is the flow of cash that is related to the purchase
Accounting Information System (AIS) is the collection, storage, processes, analyses and disseminates of financial and accounting data used by internal management to report information to owners, investors, debtors, creditors also government tax authorities. An accounting information system is a subset of Management Information System (MIS) which is responsible for offering timely and accurate financial and accounting information as well as statistical reports to facilitate the internal management decision
For example, it may be in the form of equity financing in which the friend or relative receives an ownership interest in the business. However, these investments should be made with the same formality that would be used with outside investors. The advantages of financing from family and friends are more flexible than other lenders, offer loans without security or accept
and PCC Financial Reporting Standard Financial reporting is extremely significant to the economy comparable to a human brain. Financial reporting trigger on where, how and when the investors or capital markets are hungry to invest or to be conservative and it also drives the economic condition in general. Financial statements speaks to convey information regarding the financial condition of an organization. Therefore, the usefulness, relevance, comparability and reliability of the financial reports
COMBINING DIFFRENT FUNCTIONAL AREA OF A COMPANY IN A WAY WHICH WILL ACHIVE THE BUSINESS OBJECTIVE. THERE MAY BE VARIOUS PROS AND CONS IN STATING THE STRATEGIES IN THE ANNUAL REPORT, SOME OF ARE AS FOLLOWS Advantages Encourages Investment An annual report that delivers good news in the form of financial results encourages stockholder investment and higher stock value. A company planning a strategic corporate move may receive less resistance from interest groups and competitors and could gain support for
was put in place to reduce fraud, improving the reliability of financial reporting and restoring the investor confidence. The paper will examine tax advantages and disadvantages of the Sarbanes Oxley Act of 2002 while incorporating fraud prevention and small business. In 2002 this changed how business practices in order to protect the investors. In 1934 the Securities and Exchange Commission was created to police the U.S, financial markets. When the Sarbanes-Oxley Act of 2002 was formed it created
strategy for selling its goods and services to customers. Functional business strategy is part of an organization's wider strategic plan.” These functional strategies include operations, marketing, human resource, production, research and development, financial and organization strategies. These strategies enable a company to
strategic plan. In addition, a Stakeholder Participation Matrix will be used to ensure full stakeholders participation (Lienert, n.d.). The GraceKennedy Limited is a public company that has a Group of subsidiaries operating mainly in the food and the financial
under or over absorption of - All overhead have to be recovered, overhead. (Hence, no adjustment is require otherwise loss will be made. in the income statement) Advantages and Disadvantages of Absorption Costing Advantages Disadvantages Absorption costing includes an element - Not as useful in short term decision of fixed overhead in inventory values. making as marginal costing.
INTRODUCTION As we know that, double-entry bookkeeping system is established by Luca Pacioli. Without double-entry bookkeeping system, we cannot analyse the financial status of a business. ACCOUNTING EQUATION The foundation accounting equation is the relationship between assets, liabilities, and equity. It is a basic accounting equation used to balance all of the businesses account (Wikipedia 2017). For example, the double-entry bookkeeping system is a famous system in the accounting world. Most