Financial Accounting - Essay Example

Summary

Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER92.6% of users find it useful

Read Text Preview

Subject: Miscellaneous
Type: Essay
Level: Undergraduate
Pages: 4 (1000 words)
Downloads: 3
Author: kingkarianne

Extract of sample "Financial Accounting"

Download file to see previous pages

Tesco’s performance in the two preceding year 2008 and 2009 has been good and the company has been performing with its best abilitites. Although the company has operated well, there are few areas that my need improvement. The profitability of the company has been good and has increased a bit but the net profit margin has decreased, indicating that the company’s conversion of its gross profit to net profit is rather low and it has gone bad in the year 2009 as compared to 2008. The liquidity is a bit shaky and needs some attention.

The liquidity ratios calculated above clearly predict that the company is facing some working capital issues; the feasible result for the current ratio is 2:1, whereas the feasible result for acid test ratio would be 1:1. According to the ratios calculated, TESCO does not have the necessary current assets to deal with its current liabilities. The company as per the calculations above seems to have too many current liabilities (almost double to the amount of the current assets), such an effect is really alarming for any company and Tesco should clearly employ techniques to overcome this issue.

The chairman has concluded that the company has performed well during the year end 2009 although there were major economic downturns for the global business environment due to which many weak companies collapsed. Considering that particular economic recession, TESCO has performed exceptionally well in the year 2009. Besides this, the chairman has pointed out on the acquisition of TESCO personal finance held by the Royal Bank of Scotland considering this an organic growth for the company. TESCO has certainly grown over the years and it would have been in a much better state if it was not for the global economic recession.

Debenhams is a leading department stores group. Debenhams has a strong presence in key product categories including women’s wear, menswear, home wares, health and beauty, accessories,

...Download file to see next pages Read More

CHECK THESE SAMPLES OF Financial Accounting

Financial Accounting Standards

Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis paperThe GASB is the model applied by the General Accepted Accounting Principles used at the federal and state level in the United States.... However, the difference is that while GASB sets standards for Financial Accounting and reporting at the state and local government level, FASB does the same job for the private sector which includes not-for-profit... The FASB is also similar to this model because it too has been created to establish General accounting Principles for the public interest of the country....

4 Pages (1000 words) Essay

Language of Business

hellip; Accounting gives a clear picture of the performance of an organization and enables these stakeholders to make informed decisions. Generally Accepted Accounting Principles are the set of broad and specific rules and concepts that govern Financial Accounting practices (Wild, 2005).... In the USA, Financial Accounting Standard Board (FASB) develops GAAP.... accounting is often called the "language of business" because it provides a means of communicating financial information to different parties....

3 Pages (750 words) Research Paper

Management and Financial Accounting

On the other hand Financial Accounting deals with the reporting of the official accounts on demand of the shareholder, government agencies and other parties external to the firm.... We will start our assignment with the Management accounting which is the process of Analyzing, preparing, accumulating, identification and communication of information used by Management to plan, evaluate and control the organization's objective for better results.... hellip; Management accounting is also useful for preparing the accounts for the non management group such as shareholders, tax authorities and regulatory agencies....

6 Pages (1500 words) Essay

Introductory financial accounting

The use of fair value accounting not only improves the characteristics of the Financial Accounting reporting but it also allow investors to have better insight into the overall affairs of the firm.... However, there are still obstacles to presenting the information in uniformed manner in order to make… Convergence of accounting standards can provide investors a uniformed set of information to evaluate the information across the different regions and make better economic decisions. It is also however, important to understand that storical cost basis of presenting the information is more consistent and reliable way of presenting the information as compared to recording the information at fair value....

5 Pages (1250 words) Essay

Financial Accounting Questions

Nevertheless, the company may have a negative financing period, if it has failed to clear… The debtors often provide incentive to the companies by offering them a discount in case of the early payment whereas, they tend to charge interest Answering Questions about Financial Accounting Answering Questions about Financial Accounting Q The financing period is a time that the company has before the payments of current liabilities become due.... The international financial market is closely related to the very important and valuable concept of exchange rate....

1 Pages (250 words) Assignment

Financial Accounting questions

Financial Accounting of Establishment Financial Accounting When would disposal of an asset result in no gain or loss?... Financial Accounting: An introduction to concepts, methods, and uses.... Leasing is more convenient than issuing bonds as it does not dilute ownership of the company and the financial risk is lower (Weil, Schip & Francis, 2014)....

2 Pages (500 words) Assignment

Importance of Financial Accounting and Reporting

Certain The Financial Accounting Standards Board says financial reporting to be financial statements as well as other ways to communicate financial information related to the enterprise to the outside users.... Financial reporting, compared to the Financial Accounting, is quite broader concept that encompasses the financial statements, the notes that are given below those statements and the disclosures.... In this accounting branch, the financial transactions are incorporated in the financial statements....

7 Pages (1750 words) Essay

Financial Accounting: Funding Methods

This paper “Financial Accounting: Funding Methods” aims at analyzing two companies for their long term funding.... The table below provides a clear view of the financial details of the company and presents the trend over the past three years.... The paper will firstly discuss each of these companies individually including all discussions regarding the company's assets, liabilities....

10 Pages (2500 words) Case Study