SIDDHARTH GOYAT

A00114179

1. What are the different types of analysis we can conduct and decisions we can take
with proper accounting and financial management?
Financial Accounting is the procedure that consistently presents in the business regardless of the
way that whether it is an independent company or the huge, Domestic or the International.
Monetary bookkeeping alludes to the recording of money related occasions that happen in the
business when they occurred. It alludes to monitoring the financial exchanges of the company. It
encourages an organization to keep a record of their pay, costs, benefit earned, misfortune bear
and the inflow and surge the money of the business. It incorporates Balance sheet, Income
proclamation and the Cash stream explanation. 

Where if we talk About Financial Management, then in layman language Financial Management
is all about deciding with regards to from where Business gets the Money & On Which Business
Invest that Money so that the efficient utilization of the business made. Financial administration
is leading to the property, financing & management of Assets.

Accounting and Financial Management Helps in following way in Decision-making process

which are as follow:
 Its helps Business Entity to analyze loss-making part of the industry and how to change
that division into a profit-making
 In help in the analysis of Investment decision that company are willing to take, whether
the investment decision is meeting the condition of the company
 Not even the Investment it also supports the company to decide on the disposal or sale of
an investment to improve the shareholders or owners' wealth
 Helps in Asset Management so that every asset has its proper utilization in the
improvement of the company and no asset is remaining Idle
  Helps in making Dividend policy to attract the New Investors and raises fund for the
company whenever needed
 Not for the company but it also assists Investors to decide on their Investment plan in the
respective business as the business reported generated by the business help investors to
compare the company with the others
 It helps Creditors to assess the creditworthiness of the company.
2. Explain the following terms in brief:

1. Accounting Cycle
Accounting Cycle refers to a series of steps that helps the object to record the financial
transaction. It is a cumulative process of identify, analyzing and recording transactions.
Accounting cycle includes 8 Steps which are as follows:
 Identify Transaction
 Recording in Journal
 Posting in the ledger
 Unadjusted Trial Balance
 Adjustment (Worksheet)
  Adjusting Entry
  Financial Statements
 Closing the books           

2. Accrued Expenses
Based on the Accrual Concept, every object is required to record its property in its financial
period. Irrespective of the fact whether it paid or not. The accrued amount is also the term which
refers to record the amount before its actual payment it leads to record the amount in the period
in which it incurred and not when the mortgage of that amount made because it represents the
company liable to pay such future amount. Accrued expenses are not always referring to the
actual amount of the amount as sometimes it gets different from the actual invoice of the
supplier, which comes later.

3. Prepaid Expenses
Prepaid Expense refers to the Advance payment of any expense, which is not applied by the
object when the payment for such amount made. It Shows as Asset in the Balance sheet, and as
per accrual concept, prepaid amount only charges to the Income statement in the period in which
such amount belongs too. Example Insurance policy for five years with single premium payment,
in these case premiums for the five years paid in one year, so it is not acceptable to charge all
expenses in one year so that amount is required to charge equally in the five years. So, in these
cases, Insurance expenses in the first year for the next four years are said as a prepaid expense.

4. Depreciation
Depreciation is an accounting process of designating the value of a physical or tangible asset
over its valuable life or life anticipation. The reduction describes how much of an assets' value
has used up. Depreciating assets encourages companies to earn profits from an asset while
expensing a division of its amount each year the asset is in use. If not taken into account, it can
considerably affect earnings. Moreover, businesses can depreciate long-term assets for both tax
and accounting purposes.

5. Double-entry accounting
Double-entry accounting is a standard accounting system that involves recording each
transaction in at least two accounts. In every business transaction, we record the total dollar
amount of debits must be equal to the credit. Moreover, the debit side must be equal to the credit
side whatever the amount we add on the left sides we must have to add the same value on the
right side as well to keep both sides equal.
  
6. Rules of Debit and Credit 
One of the first steps in examining a business transaction is deciding if the accounts associated
rise or drop. However, we do not use the concept of an increase or decrease in accounting. We
use the words debit and credit rather than increase or decrease in the account. The meaning of
debit and credit will change depending on the statement type. Debit means the left side, and
credit means the right side. The accounting equation? ASSETS = LIABILITIES + EQUITY The
accounting equation must always be in balance, and the rules of debit and credit enforce this
balance.