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Finance & Accounting
Pages 7 (1757 words)
Question 1 a) Financial accounting is very important in the management of business as financial management has a large number of functions. My role of being a CFO is very important as to classify the data appropriately in ledgers. It is not just mere recording of entries but it is also a way to interpret financial information and this should be adequately communicated to the CEO…
A business’s financial position is evident from its profit and loss account and the balance sheet. The balance sheet and the profit and loss statement should communicate the appropriate results of the firm to the CEO so that he can make decisions regarding investment. The financial statements of the firm should be made available to all so that they can make their own conclusions from the financial statements with respect to the operations in the firm. It is very important that the financial information provided must be reliable and authentic. The primary objective of my role as CFO is to interpret the firm’s accounts accurately and identify which of the investment methods could benefit the firm in the long as well as the short run. This could be achieved by making appropriate review of the financial statements as well as developing accurate interpretations. This is supposed to benefit the firm and its stakeholders. b) The company can use concise financial report, which consists of Consolidated Income Statement, Statement of Comprehensive Income, Balance Sheet, and Statement of Changes in Equity, Statement of Cash Flows so that all the third party investors and stakeholders could evaluate the firm’s business. ...
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