Essays on Profit AND Loss Account

Organizational Chart

There are three types of decision making which are taking place at the different level of organization. At strategic level of decision, an overall picture of accounting information is needed which basically involves financial report such as balance sheets and income statement (Dichev, 2008). At functional level organization-level decisions that carry day to day, operations are taken. At functional level accounting data input and maintenance take place.

Q2. Users and Purpose of Accounting

Solution: Accounting refers to the recording of the transaction which includes the detailed examining of all the budgeting proceedings (Riahi-Belkaoui, 2004). The basic function of accounting is to provide all the information ...

Executive Summary

Better Fresh Juice Parlor is determined to create a distinctive place where customers can exchange meaning and entertain each other in a relaxed environment as they enjoy quality fresh juice and snacks. Apart from serving the customers, we will be conscious in providing satisfaction to our employees and steady returns to the shareholders by constantly reinvesting our profits in a portfolio of businesses. The business will capitalize on the high population of Minnesota Institution of Management as it focuses on developing a big customer base for its products. 1.1 Objectives

• To be the best Fresh Juice parlor in the region as rated by local authorities.

• To maintain a profit margin of 40% and above, • ...

Business Accounting Assignment 1: Business Report on Accounting Practices and Financial Standing of Crafty Limited

Introduction Final Accounts are prepared at the accounting cycle in order to determine the financial state of a business during a designated period. Preparation of final accounts include Manufacturing and Trading account statements, Profit and Loss Account sheets and the Balance Sheet. In order to calculate the amount of profit or loss a business entity has generated within a specified period, the Trading, Profit and Loss Account is prepared; since the Balance Sheet provides a snapshot of the assets and liabilities of a business, its interpretation reveals how financially viable the business is currently; while the most important function ...

Insitution

Cash flow statement complements the balance sheet as well as the profit and loss account. The balance sheet reflects the company's financial position at a particular time (e.g. the end of the accounting period), and cash flow statement explains changes that have occurred with one of the components of the financial statements - in cash - from one balance sheet date to another (Dambolena & Shulman, 1988). Balance is one of the main elements of the financial and management accounts. Depending on the destination and type of company, balance sheet structure can vary significantly (Spurga, 2004). However, its structure always ...