Question

Can you help me with the accounting and finance questions?

Accounting and Finance:

6. Who raises the operational budget? And who raises the financial budget?

7. What are the internal controls of greater importance, or more emphasis, in the accounting process?

8. Short-term financial decisions, who makes them and why? Who makes and why do they have a long-term impact?

9. What external situations could affect operations?

10. What external situations could affect budgets?

11. What external situations could affect accounting standards and / or processes?

Answer 1

Answer to 6

All types of organisations prepare operational budget, it was the responsibility of respective functional leaders like sales managers, production managers etc

Financial budget is more relevant for bigger organisations. It is prepared primarily by top management with help from each and every department

Answer to 7

Internal controls helps to prevent errors and misstatement of financial statements. For example, reconciliation is a critical internal control procedure in accounting and can ensure the account balances on the balance sheet are correct to prevent misstatement of financial statements.Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies

The seven internal control procedures are separation of duties, access controls, physical audits, standardized documentation, trial balances, periodic reconciliations, and approval authority.

Answer to 8

Short term financial decisions are made by top management .The main sources of short-term financing are (1) trade credit, (2) commercial bank loans, (3) commercial paper, a specific type of promissory note, and (4) secured loans

Short term financing is over one year or less mainly for the purposes of increasing inventory, paying payroll, paying for daily supplies, and any other working capital needs your business may have.

Answer to part 9

External situations which could effect the operations are Natural and Man-Made Disasters, commodities and natural resources, physical location, governmental policies, supply chain defects and recalls, innovation and competition

Answert to 10

External Factors effecting budget

• National and International Events. ...
• Legislative Factors of Budget Preparation. ...
• Industry and Competitor Analysis. ...
• Project Return on Investment

Answer to 11

External afftecting accounting standard or process

Investing decisions, lending decisions, governmental policies