Got a tricky question? Receive an answer from students like you! Try us!

Business Account Finance and Accounting - Essay Example

Only on StudentShare
Masters
Essay
Finance & Accounting
Pages 6 (1506 words)

Summary

Business accounts Date Financial statements are prepared to show the financial position of a firm or an organization. Financial information that can be extracted from the financial statements are important to various stakeholders…

Extract of sample
Business Account Finance and Accounting

Each of the users has different needs and interest on the financial information. First, the investors require financial information to assist in making investment decisions. Before putting their resources for investment purposes, investors have to evaluate the performance of firms to establish whether the businesses can enable them earn their required rate of return (Fess & Warren 1993). This would help them make investment decision and determine what amount to invest in a firm. Shareholders are also interested in the financial performance of the firm as it determines the dividends they will receive and the worth of their investment. Firms with good financial performance well will have good share prices and shareholders will need this financial information to determine whether to sell their shares or buy more shares (Nikolai, Bazley, & Jones 2009). Lenders are the second users of financial information. Lenders are either individuals or financial institutions that offer loans to firms that are need of funds. Before making their lending decision in terms of whether to lend and what amount to give to firms. They have to look at the financial performance to determine the risk of their money. The lenders will be interested in the performance of the firm within the duration of their loan (Fess & Warren 1993). ...
Download paper
Not exactly what you need?

Related Essays

Finance and Accounting Essay: Business Financial Crime
Earnings management is one of the most popular measures of financial business crimes, occurring in companies on a habitual basis. It can be defined as a process of intentional interference of the management in the establishment of the earnings of a business, misrepresenting the data to show better results than they actually are. Several reasons lead to management of earnings which include manager’s compensation, raising stock price, or pushing for government funding. There are different strategies available that managers can use for the purpose of earnings management and hence satisfy their…
12 pages (3012 words)
Business Enivronemnts
It is evidently clear from the discussion that it is the duty of the project manger to set up the various activities of the development process to deal with the team in an appropriate way. Here Jimaga Ltd is a SME company specializing in the design and supply of promotional brochures. As part of its expansion, Jimaga Ltd has employed me as a consultant to supervise one of their special projects. “This project is concerned with the opening of a building which they recently acquired (35,000 square metres). This new building will permit the company to target and respond to large global…
16 pages (4016 words)
Finance and accounting essay: International business
domestic capital budgeting project: consideration of additional factors 9 Characteristics of multinational companies (MNCs) affecting the cost of capital 10 Ram plc and Pram plc: Benefits from economies of scale 10 Theory of Comparative Advantage as a motive for international trade: Usefulness 11 Reference 13 1. IBF Supplies Plc: Financial and non-financial factors influencing the proposal of establishing subsidiaries in Eastern Europe, Africa as well as Asia IBF Supplies Plc is one of the leading companies in the UK market in supplying office items to its clients. The company holds a…
11 pages (2761 words)
Small Business Owner: Finance and Accounting Questions
Alert Alarms advocate superior services to clients and aim at client satisfaction at all costs. The legal ownership of Alert Alarms is sole proprietorship. The company is owned by a single owner and all the investment is the done by single owner. There also no protection of personal assets in sole proprietorship (Resource Nation, 2011) and this is the case with Alert Alarms. All these characteristics make the business a sole proprietorship. Sole proprietorship also allows businesses to save on taxes to a certain extent but the debt of the business is secured. People who have lent money to the…
4 pages (1004 words)
Finance and Accounting Essay
Government. Since the institution of FDIC insurance in January 1934, no client has lost any deposited funds as a result of malfunction. This paper delves into the history of FDIC, its administration, operations, functions and effectiveness. It also looks into its performance over the years, whether or not it is regulated by laws and whether or not it is still a preferable insurance institution. My proposition with regard to FDIC is that has fulfilled its goals and revitalized many malfunctioned banks. Board of Directors This is the administrative body of the FDIC. It comprises of five members,…
7 pages (1757 words)
Financial statements advice to Sparkle Plc. Finance and Accounting, Essay
That means the presence of such information would be useful and surely enhance value and goodwill of the company, but it is up to the decision of the directors. To support the significance of such information, theories of concepts are also explained. The recommendations included are from the perspective of a financial account which is responsible to advice the directors of Sparkle Plc. Table of Contents Executive Summary 2 Introduction 5 Research and Discussion 6 Compulsory Information 6 Report Summary 6 Management Commentary – IFRS Standards 6 Auditors Report 7 Directors Report 7 Directors…
11 pages (2761 words)
Finance and Accounting Essay
The funny bit about such adjustments is that they can be based on the annual expenses of operating leases (Arms 2010). On the other hand, they can as well be based on the undiscounted available future operating lease payments. These are normally available on the notes to the financial statements. Such is the information that is normally available to many users of the statements and the entire statement. The information is considered insufficient hence a recommendation that the adjustments be made repeatedly and even severally while measuring the same amount. This results into uniformity and…
4 pages (1004 words)