Financial statements enables business leadership to analyze various investment opportunities/projects facing a company and to give department heads an understanding on how to meet the objectives. In addition, company principals sift through financial statements to choose competent business partners with whom they can work and make money for the business (McGraw-Hill, Financial Statements and Business Decisions Chapter 1, 2010, p #3, para #1) . The use of financial statements serve as a key factor in helping companies establish the performance as well as the future potential for the company (Using Financial Statements for Decision Making http://weebly.com/using-financial-statements-for-decision-making.html). Financial statements are another form of communication for managers, investors, creditors, and their competitors concerning the company’s overall financial well-being. A company’s financial statements also reflect the history in the financial information of the entity.
• Registered members will be provided with various promotional offers. Conclusion Technology has become the order of the day. Small to large industries have adopted technology to improve and enhance their business opportunities. This step towards e-business is a great futuristic approach by the Express Avenue Management team. A proper implementation of this strategy would be the most cost effective way for the mall to increase its customer base and have a positive impact to its bottom line.
A financial manager does not only take care of the day to day accounting assignment, but is expected to be involved in every financial decision within the company. A financial manager will normally be seen working with other managers on matters that will affect the financial state of the company. He or she is not only a financial projection expert, but is also in charge with overseeing the finances of a company and carries out all strategic financial planning and reports, delivers statements and summarizes the company’s financial activity to stakeholders and other interested out and inside party’s. The financial manger holds authority over decisions such as, costs, payroll, investment, mergers and acquisitions. They also oversee employees who work in the financial department.
Decisions Making The management of the company is responsible for taking decisions and formulating plans and policies for the future. They, therefore, always need to evaluate its performance and effectiveness of their action to realize the company's goal in the past. For that purpose, financial statement analysis is important to the company's management. 3. Grant Credit The creditors are the providers of loan capital to the company.
QUESTION 1 Financial Accounting is an accounting system that tries to meet the needs of the various user groups especially for external users. It’s overall purpose is to construct financial reports that provide information about a firm's performance to external parties such as investors, creditors, and tax authorities. Types of financial reports used are Statement of Financial Position, Statement of income and Statement of cash flow. Users of the information are stockholders, government, investors and tax authorities. Management Accounting is an accounting system is used for internal decision making.
Financial analyses are often used by investors and is prepared by professionals (financial analysts), thus providing them with the basis in making investment decisions. Financial institutions (banks and other lending companies) use them to decide whether to grant a company with fresh working capital or extend debt securities (such as a long-term bank loan or debentures) to finance expansion and other significant expenditures. Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company. Media and the general public are also interested in financial statements for a variety of reasons. To entice new investors, most companies assemble their financial statements on fine paper with pleasing graphics and photos in an annual report to shareholders, attempting to capture the excitement and culture of the organization in a "marketing brochure" of sorts.
In the article titled “Challenges for Financial Managers in a Changing Economic Environment” author Livia Ilie posits that responsibilities that once focused on financial planning budgeting now require strategic evaluations and professional communication of this information to subordinates and managers. Ilie (2015) stated, “The CFO has to be able to express in simple words what is behind the complex data analysis the finance department is making available” (p. 729). It is equally important to process and present the data as it is to explain to peers, subordinates and executives what the information means. This places a CFO or financial manager in the position as both a leader of peers and subordinates as well as a member of the executive team. Ilie recognized financial managers face many challenges related to changes in the role of a companies finance operation.
A. Duties of a management accountant The role of the management accountant is to perform a series of tasks to ensure their company 's financial security, handling essentially all financial matters and thus helping to drive the business 's overall management and strategy. Management accountants are key figures in determining the status and success of a company. Some choose to become a Certified Management Accountant (CMA), a similar credential to CPA, but with a greater focus on cost accounting, financial planning, and management issues. Management accountants aid managerial planning and commercial decision-making tasks by providing appropriate financial information and undertaking related accounts administration.
Balance sheet, Income statement, statement of cash flows, and statement of stockholders’ equity The balance sheet is one of the major financial statements used by accountants and business owners. The balance sheet displays an organization's fiscal position at the finish of a specified date. Some depict the asset report as a "preview" of the organization's budgetary position at a focus a minute or a moment in time. The income statement is imperative since it demonstrates the benefit of an organization throughout the time interim specified. The period of time that the statement spreads is picked by the business and will differ.
It is the business that has grown faster in Spain, due to its expand by almost all over the world offering original products with an intermediate price always keeping the latest trends. 1.1 MOTIVATION TO INTERNATIONALIZE Bimba & Lola is an international franchise chain, which continue its growth plan. This expansion suppose opening up markets more profitable and giving the possibility to increase the new ideas using innovative products. (Hollensen, 2007). Its ambitious international expansion plan, along with its many opening shops in the domestic market, has boosted the company to a high economic growth.