Conor Cunningham P1
Task 3:
(a) Your client Joan Thompson has now received the financial statements and
information which you have prepared :
Final Accounts
Cash Flow Forecast
Ratio Analysis
She has asked you for a brief explanation of the purpose of each statement. Prepare
an informal report to your client which provides an explanation of each statement.
You should keep in mind the following purposes of accounting:
To record business transactions
To monitor business activity
To control business operations
To manage the business
To measure financial performance
You must relate your descriptions to the accounting tasks you have completed for
Joan Thompson’s business.
P1 (BA)
This provides evidence for P1 Business Accounting
To; Joan Thompson, Grand Event Designs From; Cunningham Accountants
Ref; 100 Date; 21/04/2016
1.0 Introduction
This report was requested by Joan Thompson at Grand Event Designs. This report will
contain a brief explanation of the purpose of Final Accounts, Cash Flow Forecast and Ratio
Analysis. The purpose of accounting will also be investigated. This report has been
requested for 21/04/2016.
2.0 Findings
The purpose of accounting is to accumulate and report on financial information about the
performance, financial position and cash flows of a business. This information is then used
to make strategic decisions about how to manage the business and decide how money is to
be used within the business. Accounting provides information that is needed for sound
economic decision making. The main purpose of financial accounting is to prepare financial
reports that provide information about a firm's performance to external parties such as
investors, creditors, and tax authorities.
Task 3:
(a) Your client Joan Thompson has now received the financial statements and
information which you have prepared :
Final Accounts
Cash Flow Forecast
Ratio Analysis
She has asked you for a brief explanation of the purpose of each statement. Prepare
an informal report to your client which provides an explanation of each statement.
You should keep in mind the following purposes of accounting:
To record business transactions
To monitor business activity
To control business operations
To manage the business
To measure financial performance
You must relate your descriptions to the accounting tasks you have completed for
Joan Thompson’s business.
P1 (BA)
This provides evidence for P1 Business Accounting
To; Joan Thompson, Grand Event Designs From; Cunningham Accountants
Ref; 100 Date; 21/04/2016
1.0 Introduction
This report was requested by Joan Thompson at Grand Event Designs. This report will
contain a brief explanation of the purpose of Final Accounts, Cash Flow Forecast and Ratio
Analysis. The purpose of accounting will also be investigated. This report has been
requested for 21/04/2016.
2.0 Findings
The purpose of accounting is to accumulate and report on financial information about the
performance, financial position and cash flows of a business. This information is then used
to make strategic decisions about how to manage the business and decide how money is to
be used within the business. Accounting provides information that is needed for sound
economic decision making. The main purpose of financial accounting is to prepare financial
reports that provide information about a firm's performance to external parties such as
investors, creditors, and tax authorities.
