Evaluate the Output of the Process and the Quality Gateways

2435 Words Feb 27th, 2013 10 Pages
Module: Financial Management and Control Unit: Sources of Finance and Costing Concepts Lesson: Long-Term Sources of Finance
© Resource Development International Ltd. (RDI) 2009

Long-Term Sources of Finance

Page 1 of 7

Accounting is an essential function in any business - whether it is a sole trader or a multinational corporation. It involves two key concepts: Bookkeeping - where a detailed recording process is used to identify every financial transaction that takes place involving an organisation. This is a painstaking process requiring an excellent eye for detail, and measures the financial effects of economic activity. Financial reporting - where details of the financial activities of an organisation are
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" The above involves participation in management to ensure that there is effective formulation of plans to meet objectives (strategic planning); formulating of short-term operation plans (budgeting/profit planning); acquisition and use of finance (financial management) and recording of transactions (financial accounting and cost accounting); communication of financial and operating information; corrective action to bring plans and results into line (financial contrite; reviewing and reporting on systems and operations (internal audit management audit).' The next section discussed the competitive environment for which the management accountant provides information.

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© Resource Development International Ltd. (RDI) 2009

Long-Term Sources of Finance

Page 2 of 7

Every organisation will need to have an adequate amount of financial strength to carry out the activities that form the business operations. The sources of such funding are discussed in detail in this lesson, but before embarking on the discussions consider the different types of funding that a selection of organisations might require. Think about some different types of organisations. What would be their key sources for funding? To what purposes would this funding be put? Do you
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