Question

Imagine this scenario: - You are currently working in management, within the aspect of accounting impacting the business decision making, answer the following the questions.

1)   What other uses, if any, do you have for accounting information (i.e. other than the uses already discussed)?
2)   Is there anything else you feel I should know about accounting as I get started in this class?
3)   What keeps you up at night?
4)   If your budget increased by 10% what would you do? Decreased by 10%?
5)   What traits do you look for in people at various stages of their careers?

Answer 1

1)   What other uses, if any, do you have for accounting information (i.e. other than the uses already discussed)?

Following are the other uses of accounting information

a) Investor information : Accounting and financial statement information are usefull to investors and share holder for making investment decision. Bankers , lenders often review accounting information to review financial stabiity of the company

b) Management decision : For management level decision , income statement and accounting information are used which provide an overview of entire business. Decision such as purchasing new assets, employee bonus , new project information all can be decided from accounting information

C. Performance of business : Accounting information help to check the financial position of a company

d) Taxes : On the basis of accounting information , company can calculate its tax liability in advance and can do tax planning on the basis of it.

2)   Is there anything else you feel I should know about accounting as I get started in this class?

You should know the three golden accounting principle which are :

1.personal A/c which state the rule Debit the receiver and credit the giver.

2.Real A/c the rule,Debit what comes in and Credit what goes out.

3.Nominal A/c were Debit all expenses and losses and Credit all incomes and gains.

You should also aware about basis accounting principle , GAAP and basis idea about assets , liabilities, Income and expenses

3)   What keeps you up at night?

Question not clear . Kindly explain it

In accounting sense, when my balance sheet or cashflow does not match , it keep awake me at night

4)   If your budget increased by 10% what would you do? Decreased by 10%?

If the budget the increased by 10% , I will do the analysis of whole budget once again.

I will identify all fixed and variable expenses from the budget and will try to reduced or avoid the variable cost of the company

Decreased By 10%

If my budget decreased by 10 % , then I will do current investment

5)   What traits do you look for in people at various stages of their careers?

Following traits are observed at various stages of a careers

Self confident

Ethical

Attitude

Hardworking