Question 5 “Financial accounting is compulsory for companies. Therefore it must be the only type of accounting that managers need.” You are required to: Discuss the above statement and provide examples to support your points of view. (25 marks) Financial accounting is the field of accountancy concerned with the preparation of financial statements for decision makers‚ such as stockholders‚ suppliers‚ owners and other stakeholders. The fundamental need for financial accounting is to reduce
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Limitations of Financial Accounting: Financial accounting is the only branch of accounting and it is not perfect. There are large numbers of limitations which open new way to use other tools of accounting. To know what are the main limitations of financial accounting. It is very necessary for accountants. Accountants are often blind to these limitations. So‚ I am covering its limitation a lot of ground. Read below and understand:- 1. Financial accounting is of historical nature Net effect
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Solvency Ratio 13 Asset Management Ratio 13 Assessment of Market Value 14 4. B 14 Comparison of Liquidity Ratio 14 Asset Management Ratio 15 Profitability Ratios 15 Solvency Ratio 16 Decision of Selection 16 Task 1 Q: 1.1 A single person or group of person who are concerned with the day to day operations and performance of a company are termed as stakeholders of that company. A list of possible stakeholders of a company may include employees‚ company management‚ company suppliers‚ stockholders
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[pic] Management Accounting Submitted to: Dr. James Tong MBA 507: Management Accounting Submitted by: Rajvinder Brar Student Id-0910183 Definition – Historical cost In accounting‚ historical cost is the original financial or monetary value of any economic item. It is based on a stable measuring assumption of a unit. Sometimes
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Question: 1 Mini Project topic: Introduction to Management Accounting. You are the person in charge of the management accounting department of a manufacturing company. You are required to mentor your junior of the r staff on the essentials of the management accounting in the following areas: (Note: you may need to create an illustration to elaborate the following matters). (A) Explain how to cost can be classified by their behaviour‚ with particular reference to the effects both on total and
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CHAPTER 2: REGULATION IN FINANCIAL ACCOUNTING Chapter 2 regulation in Financial accounting LEARNING OUTCOMES Upon completion of this chapter you should be able to understand: • The difference between management and financial accounting. • Why accounting regulations are important and required. • The need for and the structure of professional regulation‚ company law‚ stock exchange legislation and EU Directives. • How the different aspects of regulation work together
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references Cho‚ CH & Patten‚ DM 2007‚ ‘The role of environmental disclosures as tools of legitimacy: a research note’‚ Accounting‚ Organizations and Society vol. 32‚ no. 7‚ pp. 639-47. Cormier‚ D‚ Magnan‚ M & Van Velthoven‚ B 2005‚ ‘Environmental disclosure quality in large German companies: economic incentives‚ public pressures or institutional conditions?’ European Accounting Review‚ vol. 14‚ no. 1‚ pp. 3-39. Cowan‚ S & Gadenne‚ D 2005‚ ‘Australian corporate environmental reporting: a comparative
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Accountants follow professional guidelines for measurement and disclosure of financial information. These are called generally accepted accounting principles (GAAP). In the United States‚ the Financial Accounting Standards Board (FASB) formulates GAAP. The International Accounting Standards Board (IASB) sets global or International Financial Reporting Standards (IFRS)‚ the two basic types of external providers of capital include investors (who exchange cash for stock) and creditors (who loan cash)
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Australian School of Business School of Accounting ACCT5930 FINANCIAL ACCOUNTING Course Outline Semester 2‚ 2014 Part A: Course-Specific Information Part B: Key Policies‚ Student Responsibilities and Support Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 1 STAFF CONTACT DETAILS 1 2 COURSE DETAILS 2 2.1 Seminar Times and Locations 2.2 Units of Credit 2.3 Summary of Course 2.4 Course Aims and Relationship to Other Courses 2.5 Student Learning
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Importance of Financial Accounting Introduction According to Weygandt‚ Kieso and Kimmel (2012)‚ financial accounting is identifying‚ recording and communicating the economic events of an organization to‚ mainly‚ external users. Through financial accounting‚ some financial reports will be generated. Four financial statements are frequently used to report and analyze the financial status of companies and they are Income statement‚ Retained Earning Statement‚ Statement of Financial Position and
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