Introduction to Financial Accounting

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

GB518 | Assessment 1

Introduction to Financial Accounting

Total marks

40 marks

Weight

10%

Due date

Wednesday of Week 3 (4th June 2014) by 5 PM

PLEASE NOTE THE FOLLOWING INSTRUCTIONS

  • The portal will close at 5 PM AEST – Students in Adelaide and Brisbane please note to adjust for the time difference accordingly).
  • This assignment must be completed individually.
  • Submission: The assignment must be submitted electronically through the student portal – use the link under “Assessments” to submit your assignment.
  • This assignment consists of 4 questions and you are required to answer all of the questions. Please use this word document to complete the assignment and upload it on the portal.
  • Please make sure you follow the guidelines noted in your subject outline especially those relating to presentation of written work, late policy and academic integrity.

Question 1
(10 marks | Word limit: 300)

“Accounting is irrelevant in decision making because the information it provides relates only to the past.” Do you agree with this statement? Support your opinion using examples.

As per my view, accounting which is commonly called as the language used to do business more should provide the information related to the experience of previous business people and if it helps in predicting conveniently. Accounting is useful in making decisions for the progress of success but the condition is that it the future. All those people engaged with business such as stakeholders, managers, employees gets complete information about their business and then by analysing it, they can easily make a judgment for further investment or how they can manage their business in the best possible way so this all can be checked by viewing the transactions, which is all related to accounting. So accounting is only useful when along with the stories of past, it let the people know about the future of the firm. The information one can gets from accounting which can be an example is that financial statements are of very much use as they help in recognizing that where and how the money has been spent and what is the ratio of profit and loss so this is all possible only because of accounting so it can be useful for making the decisions for future wisely. One can learns a lot from the mistakes done in past by business people. Decision making is the process in which one chooses the best from either two or more than two things so it obviously helps in finding the liabilities, assets and expenses of the business and this review is done either in every six months or on yearly basis. One can use the money and all other resources intelligently in the firm by doing auditing which provides information that how much is the chance of getting profit in the future and by this way, investors invests their money in the business.

Question 2(10 marks | Word limit: 300)

Discuss the difference between a special-purpose financial report and a general-purpose financial report.

Firstly the term that needed to be learned is financial report. This is a report made on daily, quarterly and yearly basis to keep the record of all the transactions in order to know that whether the company is working in right direction or not. As the name shows, special purpose financial report is used by higher management to take special and serious decisions for getting the success in future while general decisions are taken normally on daily basis and they are usual so managers do not feel hesitate and just review the general purpose financial statements. General purpose financial statement can be used by all the employees working in the firm but this is not the case with another type of financial report. Even special purpose financial report cannot be discussed in all the meeting and cannot be disclosed in front of all the employees but it can only be used by limited users working in the company. Financial reports are made for people belonging to different groups so special purpose financial report is general made for people working in tax department, government or managerial staff in the bank can use it having authorized power to check and balance all the financial transactions so that a wise decision can be made for future. These both types of reports are also analysed by the stakeholders but most of the time, general purpose financial reports are annual reports of the firm which can be gained access by any working person of that business. The users reviewing either type of reports are in a position to make decision but the type and nature of decision of varies as per their designation. So normally, general purpose financial report is the best tool to make decision in any business and reporters try their best to provide every information in reports.

Question 3(10 marks | Word limit: 300)

“Ethical conduct on the part of a business is essential to its long term survival.” Do you agree? Why or why not?

I am completely agree by this statement as in business, every employee must give respect and demonstrate ethical behaviour towards other for long term relationship. Employees feel well while working when they are given respect and treated with justice, management feel easy to take right decisions and such environment creates a developmental flow in the business. For any reputed firm, the thing that is quite necessary is the trust b/w employees and trust of customers for the products so winning the hearts can only be done by keeping an ethical behaviour in an industry. There are some set of rules and regulations which are followed by all working in that firm. An example can be given as if any company does not conduct ethical principles and use some illegal sources for getting more profit and if this whole scenario becomes common among people then that firm can be in a serious trouble so any unethical behaviour leads to the destruction morally as well as economically. One cannot do fraud in a business if all the ethical rules are followed and such person can be caught easily. It is observed in this world quite common that many successful businesses suffer from failure and instead of getting profits, organization are continuously facing trouble even managers feel some much risky while taking any small decision. This whole condition occurs when ethics is ignored and rules are not followed. Basically ethics is the knowing of what is right and what is wrong and the person having clear understanding of ethics can easily get success by working hard. No doubt, short-term profit can be earned by breaking the regulations but long-term survival is never possible without following ethics. The relationship to the customers must be loyal and ethical and customer service must be given with great care to leave long-term impact on all customers and they feel trust with that organization.

Question 4(10 marks | Word limit: 300)

Briefly explain the nature of the conceptual framework for general-purpose external financial reporting and discuss the perceived advantages and disadvantages of having a conceptual framework.

The basic purpose of financial report is to save all the records necessary for analysing purpose for future investment in the business which is often needed by the employees working in the firm. External reports are financial documents published in an organization, which are cash flow statements and transaction records. The external reports made by the cashiers and accountants are analysed within the conceptual framework where need and demands are examined for financial reporting. Conceptual framework is designed to guide the employees, stakeholders, auditors and managerial staff to work in right direction in preparing the financial reports. All the accounting standards are reviewed so basic purpose of general-purpose external financial reporting is needed in that case. The nature of this reporting is quite understandable that it should primarily focus on the objectives which are made for the development of the firm and achieved goals are reviewed in the light of conceptual framework. Reliable and relevant information is given in reporting for better understandibility by all the employees. Without any conceptual framework, companies may face issues which are difficult to resolve easily so layout is needed to be made.

There are some advantages of conceptual framework which are: it creates common goals and objectives for all the employees working in the firm. The goal can be easily understood as well as achieved if there is already some planning done. All the rules and regulations are pre-defined which are made for the betterment of the firm. There are some disadvantages of conceptual framework also which are: for any small organization, making reports is not an easy task because all the employees working in a new business environment feel inconvenient in following conceptual framework. Very detailed conceptual framework is not easy to follow which often leads to a disturbance in working and vision cannot be easily focused.

MARKING SHEET

Requirement

Maximum

Marks

Marks Awarded

“Accounting is irrelevant in decision making because the information it provides relates only to the past.” Do you agree with this statement?

10

Discuss the difference between a special-purpose financial report and a general-purpose financial report.

10

“Ethical conduct on the part of a business is essential to its long term survival.” Do you agree? Why or why not?

10

Nature of the conceptual framework for general-purpose external financial reporting and the perceived advantages and disadvantages of the conceptual framework.

10

Total above

40

Weighted down

10

Marker’s general comments

Marker’s name

Marker’s signature

Date marked

Campus

GB518 | Assessment 1 Introduction to Financial AccountingPage 1 of 5

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.