1,119
10
Essay, 2 pages (300 words)

Introduction to financial accounting assignment

Introduction to financial accounting BY tearl 2242001 Finance – Introduction to Financial Accounting Introduction Financial accounts are the records of the financial dealings of the business, their every day transactions. The main role of financial accounting is to: Record financial transactions; e. g. collecting money from sales, paying suppliers, salaries and wages. Help the managers to manage the business more efficiently by preparing regular financial information e. g. onthly management accounts showing sales, costs and rofits against budgets, forecasting cash flows, cost investigations. Provide other stakeholders with legal/vital information (financial accounts: trading account, profit and loss, and balance sheet). ?????? Shareholders – how their investment is doing. ?????? Suppliers – can they give the business trade credit. ?????? Banks and lenders – can the business meet repayments of loans and risks of loaning the business money. ?????? Inland revenue – tax returns.

The main accounting records kept by the business are records for keeping the details f transactions: Sales ledger: shows how much is owed by customers who have bought on credit. Purchase ledger: shows how much is owed by the business to suppliers who have provided goods and services on credit. Cash book and bank statements: shows all transactions involving cash (e. g. receipts from customers, payments to suppliers, employee wages). Nominal (or “ General”) ledger: used to categorise the transactions of a business under headings e. g. ales of widgets, raw materials, electricity, and postage. These records are used to maintain the information that is used to make up the main financial statements. Hnanclal statements Financial accounting produces the following key documents: Profit and loss account – showing how the business has traded for a specific period. Balance sheet – a statement of the assets and liabilities of a business at a particular time, and how those assets and liabilities have been financed. Cash flow statement – a statement showing how cash has come into the business and what it has been spent on.

Thank's for Your Vote!
Introduction to financial accounting assignment. Page 1
Introduction to financial accounting assignment. Page 2
Introduction to financial accounting assignment. Page 3

This work, titled "Introduction to financial accounting assignment" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Introduction to financial accounting assignment'. 22 September.

Reference

AssignBuster. (2022, September 22). Introduction to financial accounting assignment. Retrieved from https://assignbuster.com/introduction-to-financial-accounting-assignment/

References

AssignBuster. 2022. "Introduction to financial accounting assignment." September 22, 2022. https://assignbuster.com/introduction-to-financial-accounting-assignment/.

1. AssignBuster. "Introduction to financial accounting assignment." September 22, 2022. https://assignbuster.com/introduction-to-financial-accounting-assignment/.


Bibliography


AssignBuster. "Introduction to financial accounting assignment." September 22, 2022. https://assignbuster.com/introduction-to-financial-accounting-assignment/.

Work Cited

"Introduction to financial accounting assignment." AssignBuster, 22 Sept. 2022, assignbuster.com/introduction-to-financial-accounting-assignment/.

Get in Touch

Please, let us know if you have any ideas on improving Introduction to financial accounting assignment, or our service. We will be happy to hear what you think: [email protected]