BussinessAccountingWeek4 (1).pdf assignment

This project involved creating a financial presentation for Gemstar Productions, showcasing the company’s financial condition through key reports including the Balance Sheet, Profit and Loss Statement, and Statement of Cash Flows. I calculated and interpreted financial ratios such as debt to assets, return on assets, and return on equity to assess overall performance. I also analyzed budget variances and explained the financial impact of operational decisions.
In addition, I recommended internal controls to improve financial accuracy and asset protection. Each control was designed to strengthen accountability and reduce risk, with clear methods for monitoring effectiveness. The project concluded with a summary of key accounting concepts and demonstrated my ability to manage financial data and support strategic decision-making.

1. Business Accounting: Assignment 4
•By: Tyran McCrory

3. Formulas:
•DEBT/ASSEST: TOTAL DEBT/ TOTAL ASSESTS. Our ratio is 2/4, or .5
.The higher your ratio, the more leverage you have and higher
chance of getting invested into as a company
•RETURN ON ASSEST: NET INCOME/ TOTAL ASSESTS.4833/4 is
1208.2. This measures more effectively a company uses it’s
assests.
•Return on equity: net income/ shareholders equity. 4833/24833=
.195. This calculates companies profit compared to a
shareholder’s total equity.

6. Internal Controls:
1.Preventive: This step stops problems before they happen. It helps limit access & keeps detailed
records. Best way to monitor is status reports & ongoing supervision.,
2.Detective: finds discrepancies from policies. Important for accuracy purposes and provides evidence
that the controls are working. Check regularly to maintain effectiveness.
3.Corrective: fix problems or issues that happened already. Important for the accuracy of everything and
is measured by error. Develop written policies & review transactions.
4.Split responsibilities: Make sure whatever needs to get done is done by multiple parties efficiently.
Deposits, reporting and aiding reduces chances of mess up. Write a list or guidelines ofrpeople to
follow, splitting it up evenly.
5.Monitoring: assess quality of internal effectiveness. Makes sure the risk management actions are
carried out. Ongoing evaluation and communication amongst associates to assure effectiveness.

7. KEYS TERM LEARNED!
•Balance sheet: financial statement summarizes the companies
assets, liabilities and owner’s equity at a specific time period.
•Accounts payable: money a business owes to supplies for goods
or services that have been received but not paid for.
•The ratios/formulas(debt/assets) : slide 3
•Interest payable: interest a company owes to lenders that weren’t
paid.
•Loan payable: liability account which tracks the money owed to a
lender plus the interest.