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3 years ago

Explain why a finance manager need to understand accounting information even if the firm has a trained accountant on its staff.

Business

1 answer:

nekit [7.7K]3 years ago

7 0

Answer:

Following are the solution to the given question:

Explanation:

A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.

Accountancy is a necessary input into the function of financial management. Throughout the extent, as accounts were important input in financial decision-making is closely connected with both the interaction between finance and financial.

Accrual analysis provides information mostly on the company's operations. The result of the accountancy is accounts like the income statement, the income statement, and the position financial adjustments report. The information in such statements helps money advisors assess a company's previous growth and career projections.

The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.

During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.

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On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires

Murljashka [212]

Installment note from Campbell Bank.

1-Jan Note intt expense Decrease 31-Dec

Amortization of Installment Notes Carrying payment 7% in Carrying

Year ending December 31 amount cash paid notes payable amount

year 1 147,750 43,620 10343 33,278 114,473

year 2 114,473 43,620 8013 35,607 78,866

year 3 78866 43,620 5521 38,099 40,766

year 4 40766 43,620 2854 40,766 0

b) Journal Entries

Date Account titles & Explanations Debit Credit

year 1 1-Jan Cash 147,750

Notes payable 147,750

(to record issuance of note)

year 1 31-Dec Interest expense 10343

Notes payable 33,278

cash 43,620

(to record interest expense)

year 2 31-Dec Interest expense 8013

Notes payable 35,607

cash 43,620

(to record interest expense)

year 3 31-Dec Interest expense 5521

Notes payable 38,099

cash 43,620

(to record interest expense)

year 4 31-Dec Interest expense 2854

Notes payable 40,766

cash 43,620

(to record interest expense)

c) interest expense of 10,343 would be reported on the income statement of Bryson Company.

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2 years ago

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? A. 6 B. 12 C. 4 D. 3

nadezda [96]

Answer:

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? C. 4

Explanation:

Compounding means at the end of every term, the interest adds up to the Principal Amount. Compounded quarterly means, you do it for every three months. So after every three months, your interest will be added to principal.

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3 years ago

__________ is the function in business that is responsible for acquiring funds for the firm and managing funds within the firm.

Contact [7]

The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing

<h3>What is financial manager?</h3>

Financial managers are in charge of an organization's financial health. They create financial reports, direct investment activities, and plan for their organization's long-term financial goals.

A financial manager is in charge of maintaining the proper balance of equity and debt. Funding allocation: The next step is to allocate the funds after they have been raised. The best way to allocate funds: the size of the organizations and their ability to grow.

The finance function serves two primary functions: it provides the financial information that other business functions require to function effectively and efficiently. to assist with business planning and decision making

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2 years ago

Earned net income of $65,000 after deducting depreciation of $8,000 and all other expenses. Current assets decreased by $7,000,

Drupady [299]

Answer:

Cash provided by operating activities is 89.000

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 65.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 8.000

+ Current assets decrease 7.000

+ Current liabilities increase 9.000

Net cash 89.000

7 0

3 years ago

In 2017, John opened an investment account with Randy Hansen, who held himself out to the public as an investment adviser and se

yulyashka [42]

Answer:

The relevant tax issues are as follows:

- Is the loss a theft loss or an investment loss?

- Is the loss subject to either the personal loss limits or the limits on itemized deductions?

- How is the amount of the loss determined?

- In which year can the loss be taken?

- Is there a way to receive a tax benefit for the full amount of income recognized in prior years?

The irrelevant tax issue is:

- Did John have other casualty or theft losses within the last five years?

Explanation:

In this scenario John invested and provided Randy with a power of attorney to use $200,000 to purchase and sell securities on his behalf.

The earnings were to be reinvested, but John realised in 2020 that Randy was running a Ponzi scheme and his account was zero.

As John will most likely not be possible a casualty loss may be allowed.

Since the loss happened in 2017 when he invested the theft loss will be deducted in that year.

He will be able to deduct his losses under 165.

Deductions are allowed for losses in a tax year that is not covered by insurance.

Losses that can be claimed are limited to:

- Losses in business or trade

- Losses in transactions for profit

- Losses as a result of theft, fire, storm, or shipwreck.

5 0

4 years ago