Examine the context and purpose of accounting

Assignment Help Accounting Basics
Reference no: EM133169015

Unit 5 Accounting

Assignment 1 - Accounting in Context and Budgetary Control

A blog that should make use of headings, sub-sections, columns and appropriate business-related images and illustrations. This format offers the opportunity to present academic and theoretical information in a practical, contextualised and creatively written way.

The recommended word limit for the case study is 1,500-2,000 words, although you will not be penalised for going under or exceeding the total word limit. All work must be supported with research and referenced correctly using the Harvard referencing system (or alternative referencing system). You will need to provide a bibliography using the Harvard referencing system (or an alternative referencing system). Inaccurate use of referencing may lead to issues of plagiarism if not applied correctly.

You will also submit a memorandum with an accompanying Excel spreadsheet (raw data will be supplied by your tutor). You will insert sections of your spreadsheet into the memorandum. The recommended word limit for the memorandum is 1,000-1,500 words, although you will not be penalised for going under or exceeding the total word limit. Referencing for both submissions should use the Harvard system (or an alternative system).

LO 1 Examine the context and purpose of accounting.
LO 2 Prepare budgets for planning, control and decision-making using spreadsheets.

Transferable skills and competencies developed
Reasoning and analytical skills
• Written communication using a range of media
• Manipulation and interpretation of data using spreadsheets
• Effective communication of relevant information across the organisation and to appropriate stakeholders
• Creation and interpretation of information, showing how that information can be used most
effectively to add value to an organisation.
Vocational scenario
Organisation

A large accountancy firm that undertakes extensive business consultancy work for their client base. They have a central London head office and regional offices in the UK in Birmingham and Southampton.

Last year, the group turnover was £200 m with 25 per cent deriving from non-UK markets, principally in Southeast Asia. They have a small regional office in Singapore. The firm also has a policy of taking on smaller niche clients, where they feel there is potential for fast growth.

Role
You have recently joined the firm as a Graduate Trainee attached to their UK SME (Small and Medium Enterprises) Unit, offering accountancy and financial services to businesses that typically have a turnover ranging from £0.5 m to £15 m. As part of your ongoing training, you have been asked to undertake some activities.

Assignment - activity and guidance
Your supervisor, one of the firm's Key Account Managers, has asked you to prepare a blog that will be used to market and promote its accounting services to new and existing clients. The working title you have been given for the blog is ‘The role of accounting in an organisation'. The blog must be presented as an online blog in an engaging and practical way, covering relevant academic theory, making use of, for example, headings, images, and illustrations. Your blog should include the following, but is not limited to:

• the purpose and scope of accounting in complex operating environments
• a critical evaluation of the accounting function in informing decision making and
meeting stakeholder and societal needs and expectations
• the main branches of accounting and job skillsets and competencies
• accounting systems and the role of technology in modern-day accounting
• issues of ethics, regulation and compliance and the extent to which they are
constraints or threats to the organisation.

Having completed the first activity, you have now been asked to work with a hospitality and catering start-up business that your firm has just taken on as a client. The business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision making. The founder of the business is investing
£100,000 of their own capital and has also secured a business loan of £50,000.
(Note: You will be provided with raw budget data in spreadsheet format, which you will then manipulate and model.)
You have been asked to prepare a memorandum that includes the following.
• Production of a 12-month cash budget that makes use of variance analysis to show the impact of the different individual scenarios below:

1. discounting prices by 20 per cent, which in turn increases sales volume per month by 10 per cent
2. increasing the marketing budget by 10 per cent per month, which in turn generates an additional 20 per cent in sales revenue

3. offering suppliers one-month's trade credit

4. reducing rental/property related costs by 15 per cent per month.
• An evaluation of the role that budgets play in the effective planning and control of resources in an organisation such as your client's. This will include both benefits and any limitations of using budgets and the extent to which they can help identify problems and corrective actions.
• An outline of a range of budgetary control solutions, with justification, to support organisation
decision making and ensure efficient and effective deployment of resources.

Referencing
You are required to use the Harvard referencing system.

Assignment 2 - Production and Interpretation of Financial Statements

A detailed letter to a named client. The letter must be clear worded, well-structured and should make use of appropriate business language and terminology. The letter can also include clearly labelled tables and charts. It will accompany and support the appropriately constructed financial statements (income statement and statement of financial position) for the business in question.

The word count is 2,000-2,500 words, although you will not be penalised for going under or exceeding the total word limit. A bibliography should be provided using the Harvard referencing system (or an alternative system). Inaccurate use of referencing may lead to issues of plagiarism if not applied correctly.

Learning Outcome 1: Prepare basic financial statements for unincorporated and small business organisations in accordance with accounting principles, conventions, and standards.

Learning Outcome 2: Interpret financial statements.

Vocational scenario

Having successfully completed your six-month probation as a Graduate Trainee at the accountancy firm, you have now been attached to a unit in the firm that deals with the provision of accountancy and consultancy services to small businesses that are typically set up as sole traders, not-for-profit or partnerships. The firm is careful about which small and emerging businesses it works with as it seeks to spot growth potential and identify and work with clients that have scalable business models.

Assignment activity and guidance
You are initially working with a selection of these small businesses that have been trading for three years and which now need annual trading statements to be compiled and submitted in line with government requirements.

You have been given:
• an extended trial balance for each business, including accruals, prepayments and figures for bad debts and depreciation
• a range of comparative key performance ratios from the previous year.

Note: this data will be given to you in spreadsheet format. Financial data must be realistic and in context to meet local needs.

These local businesses do not make use of contemporary software to support its book-keeping and accounting function. This is something which concerns you as you feel that it represents an opportunity for the business to save time and resource. Your supervisor, one of the firm's Key Account Managers, has asked you to compile the year-end financial statements ready for submission and provide, for each client, some detailed analysis of the figures produced, which will be presented in the form of an accompanying letter. Specifically, you will undertake the following:

1. From the data provided, you are required to prepare the year-end financial statements, taking into consideration accounting principles, conventions, and standards. You will need to make and show appropriate adjustments to both the income statement and the balance sheet.

2. Write an accompanying letter to the client that will be sent with the completed financial statements. The letter needs to include:
• calculation of relevant profitably, liquidity, asset usage and investment ratios.
• critical evaluation of the performance to the business year on year (making reference to data you have calculated, and data provided from the previous year), with reference to relevant benchmarks as well as any limitations of using financial ratios as performance
measures.
• an outline of the benefits of contemporary accounting software packages, with examples of products on the market.
• justified conclusions and recommendations for your client.

Attachment:- Accounting Principles.rar

Reference no: EM133169015

Questions Cloud

Production and interpretation of financial statements : Production and Interpretation of Financial Statements - Prepare basic financial statements for unincorporated and small business organisations in accordance
What is the additional year-three cash flow : The Campbell Company is considering adding a robotic paint sprayer to its production line. What is the additional Year-3 cash flow
Determine the level of sales that would generate net income : Skyline Corp. is subject to tax at a rate of 35%. Determine the level of sales that would generate net income after tax of $325,000
Accounting in context and budgetary control assignment : Creation and interpretation of information, showing how that information can be used most effectively to add value to an organisation.
Examine the context and purpose of accounting : Examine the context and purpose of accounting and Prepare budgets for planning, control and decision-making using spreadsheets
Prepare the journal entries to record the transactions : Angela Corporation receives its annual property tax bill in the amount of $9,900 on May 31. Prepare the journal entries to record the transactions
What is non-capitalized expenditures : Make comparison between similarities and differences between capitalizable and non-capitalizable expenditures and explain. What is Non-Capitalized Expenditures
Record the purchase, return, and payment : Assuming that Sheffield uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method
What tax offset will cindy entitled to for contributions : Angus has claimed $850 in allowable tax deductions for this year. What tax offset will Cindy be entitled to for these contributions and why

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd