Memo for ABC Complete Kitchens Inc

2170 WordsMay 17, 20149 Pages
Finance and Accounting Memo focusing on Managements Role and Responsibilities within ABC Complete Kitchens, INC SKS5000-8 Comprehension Strategic Knowledge Studies February 9th, 2014 Professor Nick Harkiolakis Memorandum To: The Board of Directors of ABC Complete Kitchens, Inc. From: Alexandra Kent Date: February 9th, 2014 Subject: Managements responsibilities regarding finances and accounting “Great organizations demand a high level of commitment by the people involved”- Bill Gates. Introduction Having the right man for the right job is imperative for corporate success. The person that installs the cabinetry for ABC Inc. is probably not the same person you want managing the financial…show more content…
They include any type of borrowing from persons or banks for improving on a business or increasing personal income. Liabilities of this company are duties or responsibilities that require settlement by future use of assets at or by a specific date, over a short or long time period or possibly on demand. Liabilities are categorized as current and long-term classification. Classifying liabilities as either current or long term will assist ABC Inc’s CFO assess if the risk of these liabilities will involve disbursement of cash or further company assets in the near or distant future. A current liability will be satisfied within one year. Diving deeper into the definition of current liabilities, a company also identifies them as debts that are expected to be taken care of with current assets or with the use of other current liabilities. Accounts payable are considered the total sum of monies or obligations owed to purveyors for goods and/or services purchased with credit. When accounts payable are paid off, it represents a negative cash flow for the company. Short-term debt otherwise known as notes payable is the reimbursement that will occur within the next year to satisfy a debt. Items that are known monies of the company that have not been paid such as the salary for employees or taxes and deferred or unearned

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