Summative Coursework Assignment Essay Example | Topics and Well Written Essays - 4000 words

Summative Coursework Assignment - quiz ExampleGenerally Accepted invoice Principles (GAAP) is dealing with various invoice principles and guidelines for undertaking the implementation of accounting practices. But on the other travel by, financial accounting is also important for evaluating the lollyability of the business entity. Accounting is a system used by the business entity to measure its financial performance. There are some(prenominal) branches of accounting are available, but among them both management and financial accounting is relevant. The main emphasis in management accounting is to establish the relationship between cause and effect of a particular activity. to a greater extent over, it is multi disciplinary in nature, because it is a combination of several disciplines like financial accounting, cost accounting, statistics, etc.In this case, the net profit of the company is goes on increasing, but at the same time, the property in hand is decreasing to certain ex t shutdown. cash in is a critical asset, which plays an important role in business. Cash escape statement is a statement showing the change in cash position from one flow rate to another. Because it is possible to identify the causes of changes in cash balance between the two balance sheet dates. composition preparing cash flow statement mainly it is essential to consider both actual cash flows and speculative cash flows. Cash Flow Statement For the year ended 2002ParticularsAmount (in m)Cash used in operation.Issue of shares.Cash generated Add arising cash balanceCash balance at the end(1)6549Calculation of Cash from operationParticularsAmount (in m)Net profit Add provision for taxation.Funds from operation.Add decrease in debtors.Less decrease in creditors.Cash used in operation.4610818(19)(1)Adjusted Profit and harm AccountParticularsAmount (in m)ParticularsAmount (in m)Provision for taxation.Depreciation of FA (balancing figure) gag rule balance614(6)Opening balanceFunds from operation.4101414Workings-Here, there is no government activity of assets takes place in the year 2001 and 2002, therefore the difference between the value of assets in both geezerhood are considered as the amount of depreciation, such as- 166_152 = 14m.Propose Dividend AccountParticularsAmount (in m)ParticularsAmount (in m)Cash (dividend paid)Closing balance79Opening balance.Balance transferred to Profit and loss account.791616While preparing the cash flow statement of a business organization, it is possible to understand slightly the causes of changes in the cash flow position of a business unit. Through which, it is possible to identify that the decrease of cash balance in suffer of increase in income or for increase of cash balance in spite of decrease in income. This statement consists of opening cash balance and all sources of cash and all applications of cash and ends with the closing balance of cash. More over, here the changes in current assets and current liabilit ies are adjusted in the amount of cash from operation. It is necessary for a firm to keep adequate amount of cash in hand for making immediate payments. The major responsibility of the financial manager is to plan cash and arrest adequate cash balance. A cash flow statement is considered as a summarized cash account. In addition to this,