1. A21 Business Studies (Company Accounts) Company Accounts

2. Users of Company Accounts
Shareholders
Dividend information
Profits
Business strength
Government
Investment undertaken
Local economy
Banks
Financially stable
Creditworthiness
Directors
Wealth of shareholders
Encouraging shareholders
Suppliers

3. Annual Report Company Aims Chairman’s Report Directors Report
Auditors Report
Financial Statements

4. Balance Sheet Liabilities Assets Shareholder Equity
Non-current liabilities
Current liabilities
Non-current
Tangible
Intangible
Current assets

5. Cash Flow Statement
How cash goes out
How cash goes in

6. Cash flow Problems Too much cash Too much credit Too much stock
Weak economy
Over trading
Seasonal trade

7. Cash flow Solutions Fast turnover Longer repayment periods
Remove idle assets
Sub contracting
Collect debts
Leasing

8. Advantages of Published Accounts
They give an insight into a company’s finances
Can be used as a tool by which to judge the performance of the business
They can be a useful tool in the decision making processes

9. Limitations of Published Accounts
A22 Business Studies (Company Accounts)
A21 Business Studies (Company Accounts)
Limitations of Published Accounts
Deal mainly with numerical information
Does not deal with qualitative issues
Go out of date quickly
Limited for decision making - contains summarised information
Window dressing may occur