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Essay / Research Paper Abstract
This 3 page paper looks at the role and purposes of financial statement and management account statements or reports, considering who they are designed for and the way that they are used. The paper then considers how financial statements may help with the making of informed decision regarding the firm and how they may reflect ethics. The bibliographic cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TErolefa.rtf
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Unformatted sample text from the term paper:
reported internally and externally is with the use of financial statements. There are two types of financial accounting and resulting statements; each has a different purpose and is used by
a different set of stakeholders. Financial accounting statements can be typified by the annual accounts and the way in which they are
used to compare year with year and also in terms of benchmarking between companies for performance as well as for the use of different forms of ratio analysis. The majority
of people using these accounts are not directly involved with the day to day running of the company, and the figures given are all historical, and may be out of
date by the time they are read. When looking at this type of accounts it is important to remember that the shareholder is
deemed to be the defined user, financial statement will also be prepared for other external stakeholders, including the revenue services for the assessment of taxes (Elliott and Elliott, 2007). In
all cases there is the need to make a judgment regarding the state of a business. The financial statements that are prepared of rate annual accounts have to be audited
to ensure that they are presenting an accurate picture of the business during the period for which the accounts have been prepared. This is also reflected in the presentation
of the accounts, with added notes as well as the delay in the reporting between the period and the release of the results.
Management accounting is different in approach, the financial accounts include many theoretical costs rather than real costs as seen in the bank accounts, for example depreciation is not an
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