3.1 The role of an accountant in business
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- Created on: 25-10-18 15:52
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- 3.1 The role of an accountant in business
- The responsibilities of the accountant within the business.
- Implementing efficiency measures
- Formulating and implementing business policies
- Financial accounting
- Double entry procedures
- Business documents:
- Income statement
- Statement of financial position
- Financial accounting is essential to the recording and presentation of business activities
- Trial balance
- Management accounting
- Budgeting
- Incremental budgeting
- Takes the figure from the previous years budget and adds on an extra small percentage of the previous budget to amount for any rising costs that may have occurred.
- Advantages
- Quick and easy to prepare
- Disadvantages
- This method doesn't analyse why cost and revenues occur. so it would be unable to understand where costs are coming from.
- Advantages
- Takes the figure from the previous years budget and adds on an extra small percentage of the previous budget to amount for any rising costs that may have occurred.
- zero based budgeting
- This type of budgeting takes works out the budget from "scratch" which means from the start of the year.
- Disadvantages
- Time consuming to create the budget.
- Staff would have to be trained to make sure entrues are correct.
- Advantages
- Every entry made into the budget has to be checked by the budget holder.
- This means that overspending can be identified more easily
- Every entry made into the budget has to be checked by the budget holder.
- Disadvantages
- This type of budgeting takes works out the budget from "scratch" which means from the start of the year.
- Incremental budgeting
- Marginal costing
- The total variable costs used to produce the unit.
- Break even
- Break even is the point where neither a profit or a loss is made
- Budgeting
- Developing and overseeing accounting information systems
- To make sure the documents are reliable, accurate and relevant.
- The role of the accountant involves overseeing the work of bookkeepers and ledger clerk
- The accounting equation
- Assets- libilities= Capital
- The responsibilities of the accountant within the business.
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