Cash budget is an inflow and outflow of cash estimate prepared by management in a business for a specific period of time. It helps management in credit control and determines whether there is available fund for extending operations. The purpose of undertaking this report is to forecast a cash flow for the six months ending 30th June 2011, setting up healthy credit control system, and identifying the factors to be considered when planning to invest any forecasted surplus cash for Enron limited...
This chapter discusses and summarizes the literature on all variables under study. The first part of this chapter discusses information theory. The literature is arranged according to the dependent variable and independent variables. The dependent variable that is firm performance is discussed first. The rest of the chapter summarizes all past research on the independent variables. There five independent variables involved in the study: accuracy, consistency, completeness, timeliness and uniq...
INTRODUCTION With the advent of globalization, the world seems to be ever expanding. Modern technology is improving tremendously at a gradual pace and that has resulted in an enormous enhancement in the general awareness of people. Hence it is of no revelation that people have realized the value and importance of money. They are not ready to compromise in any field of life, especially where the matter of money is implicated. Wealth maximization is the need of the hour. Each and every individu...
Lease Accounting Financial History and Future of Lease Accounting for Lessees The financial community describes the changes that could arise from the FASB and IASB as an effort to bring transparency to company balance sheets. This is a continuing reaction to Enron and certain happenings earlier in the decade that brought off-balance sheet items to the forefront. There is a lot of focus on off-balance sheet obligations now. Users of financial information rely on amounts reported in financial s...
The price of the material or materials from which a product is prepared is called direct material. In this task it would include, Carriage on purchase of basic raw material. Direct Labor: That part of the factory wages which is useful in quality and which may be applied straight to the product or to the manufacturing procedure, is called direct labor. In this task the direct labor would include, Wages of operatives in the cutting department. Direct expense: Any other cost or expenditure which...
P2. An appropriate Costing System for Royal engineering The difference between the actual and standards are represented by means of variance. There is sign of efficiency if actual cost is less than standard costs and the difference here is termed as favorable variance but if the actual costs are more than the standard costs there is a sign of inefficiency and the variance is unfavorable for royal engineering. Some deviations are observed when the actual performance are recorded and benchmarke...
One of the major components in Malaysian Financial Reporting Standard 101 is financial statements. The financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statement is to provide information about the financial position, financial performance and cash flow of an entity that is useful to a wide range of users in making economical decisions. Financial statements also show the result of the management's...
Q.1. Part-A Calculation of financial ratios Liquidity ratios: Current Ratio = Current Assets Current Liabilities Year wise Current ratio of Burberry Plc Burberry Plc 2007 2008 2009 £m £m £m Current Assets 423.7 588.4 742.4 Current Liabilities 330.4 436.2 546,8 Current Ratio 1.28:1 1.34:1 1.34:1 Quick Ratio or Acid test ratio = Quick Assets (current assets - stock) / current liabilities Year wise Current ratio of Burberry Plc Burberry Plc 2007 2008 2009 £m £m &pou...
Draft of final essay Not only are accountants required to record and reflect an organization's business activities accurately but they should also place more emphasis on meeting the requirements of company management. Therefore, modern accounting is divided into two elements, financial accounting and management accounting. Both of them are based on accounting information which is recorded in accordance with business transactions. Financial accounting is the process that classifies, measures a...
Shareholder Value Added differ from value based management as it is a performance measure of a company's worth to shareholders compared to the weighted average cost of capital invested (WACC). It started to become popular in the 1980s largely thanks to Jack Welch, former CEO of General Electric. SVA is the economic profits made by a business above and beyond the minimum return required by all providers of capital. "Value" is put in when the overall net economic cash flow of the business surpa...
