Summary
Summary D2 Unit 8
- Module
- Unit 8 - Accounting Systems
- Institution
- PEARSON (PEARSON)
Distinction achieved in Unit 8
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Neil Patel 40068068 Unit 8 D2D2: Evaluate The Value Of A Set Of Final Accounts To A Business
In this assignment I will be evaluating the value of a set of final accounting to a business.
Dear Mr Radlinski,
I am writing to you today, to explain and evaluate how the final account within your
business is valued to different external parties for different purposes.
Final accounts are made up of financial statements, trading, profit and loss and
balance sheet. All 3 of this information are combined and called final accounts.
Financial position is reflected by Balance Sheet. These are, usually, prepared at the
close of the year hence known as final accounts. This final trial balance includes the
entire journal entries used to close the books such as :
1. Wage and payroll tax accruals
2. Income tax accruals
3. Assets write downs
4. Adjustments to debit or credit
5. Depreciation
Thus, final accounts can refer to final trial balance or the financial statements upon
which they are based. The primary financial statements are the income statement,
balance sheet, and statement of cash flows.
FInancial accounts are an important piece of information for the company as it allows
it to create different financial statements in order to improve the company health and
future business. Financial statements give business the opportunity to review the
financial information and it gives the business the decision. Financial account
analysis with computerised accounting systems can increase the financial statement
analysis of individual accounts. The income statement, balance sheet and statement
of cash flows are the three most popular financial accounts and information relating
to business operations. Companies may use financial accounts to develop other
specific financial accounts to develop other specific financial reports. These reports
are often industry specific and provide business owners or managers with specific
information regarding business operations.
The Balance Sheet
The balance sheet has a purpose to show the assets of the company. Balance
sheets are based on fixed point called a reporting period- a day, a month, a quarter,
a year. A quick glance at a balance sheet will show you what the company owns and
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