assignment Type:Individual Project
Deliverable Length:3 pages
Points Possible:125
Due Date:2/16/2013 11:59:59 PM CT
You have been asked to speak at a career fair for high school students in your home town.
Specifically, you are making a presentation about your role as an accountant.
- Describe for the students the primary objectives of accounting.
- Explain the basic terminologyof the accounting process or financial reporting.
- Explain how accounting has affected your personal life emphasizing professional ethics.
- Explain the role that technology has played in small business accounting.
Please include APA in text citations and references.
Background on Course Research Requirements: In the business world, it is important to use research to strengthen points made in presentations and projects. Learning to use the search functions in databases for research is a crucial critical thinking skill that complements other research techniques.
There are two main types of databases. The most popular databases are ABI Inform Global, Academic Search Premier, and Business Source Premier. You must stay away from inferior Web sites with anonymous writers; articles found on consultant Web sites; and materials on sites like QuickMBA.com, MarketingProfs.com, etc. Dictionaries and encyclopedias most often repeat the information from textbooks.Acceptable internet resources include, among others, government sites (especially for statistics).
Wikipedia or any open source Web sites are not permitted.
Please submit your assignment.
Accounting Fundamentals
If there is a universal truth in the world of business and finance, it is this: Never run out of cash!
At the outset, this intuitive statement sounds like simple advice. When it comes to actually
doing it, however, this task requires delicate and sound financial planning and control. After all,
cash whether cash inflow or cash outflow runs throughout the whole business system and
has to be traced and re calculated at each step of the way. Our examination of cash flow in this
unit centers on issues of documentation. Specifically, we examine accounting fundamentals,
financial statements, and methods of financial forecasting and planning.
Accounting Fundamentals:
Central to understanding the financial condition of any firm is one basic accounting equation:
Assets = Liabilities + Equity
Assets are the items of value that a business owns. Liabilities are claims on the business by
nonowners, and equity is the owners’ claim on the business. The sum of the liabilities and
equity is the total capital contributed to the business. In essence, every business at any point in
time can be defined by this statement and its set of financial statements.
Financial Statements:
The primary financial statements are the balance sheet, the income statement, and the
statement of cash flow. Financial statements are either historical or pro forma projecting the
future. Consequently, financial statements are the ideal vehicles for tracing and determining
the level of cash throughout the enterprise. If measured correctly, we should know precisely:
1. What a company’s cash situation is at any point in time whether surplus or deficit, and thus
be able to
2. Plan accordingly to avoid any cash shortage.
Forecasting and Financial Planning:
After analyzing accurate financial statements, financial managers ask the following question: In
order for this business to run smoothly over a given period of time and as planned, how much
external financing will it need? In other words, they are after the Additional Funds Needed or
AFN for the given company, but how exactly does this work?
AFN is usually calculated through a method known as the percentage of sales method.
Simply put, the percentage of sales method starts with a realistic projection of the sales over
the next period next year for example. Once we know what sales look like, we are able to
create relevant pro forma financial statements especially pro forma balance sheets. At this
point, AFN is simply the difference between the projected investment needs (total assets) and
the projected financings (total liabilities and equity). Once the AFN is quantified, financial
Attachments:
unit1 Prinicp….docx