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Financial And Managerial Accounting For Mbas 4th Edition Free Download 2017
Financial And Managerial Accounting For Mbas 4th Edition Free Download Pdf
- Step 1 of 3
Three types of business activities of anorganization:
An organization plans their business operations upon thebusiness activities. The business activities of an organization arethree types. They are financing activities, investing activitiesand operating activities. Financing is the source funds tofunction the business operation. For example, issue of shares andbonds.
Investing refers utilizing the resources of theorganization. For Example: Purchase of building and sale of land.Operating activities are the expenses and income from theoperation of business. These three activities are to succeed thegoals and objectives of an organization.
- Step 2 of 3
Hence, these three business activities help planning make simpleand accurate, because, management can identify the strengths andweaknesses of each activity separately in the future conduct ofbusiness to achieve the organizational goal. While considering thefinancial statements, these three activities help utilize resourceseffectively.
For Example: Consider the cash flow statement of anorganization. It provides cash inflows and outflows of anorganization in each three activities. It will help the topmanagement to utilize the cash effectively in the future periods.These are the ways the financial statement can provide usefulinformation for each activity.
- Step 3 of 3
These all information is also useful in the future period,because it will help to compare with different years. Thiscomparison can determine the success of each activity in differentperiod. Therefore, the subsequent success or failure of eachbusiness activity will help managers to take corrective actions ifthat necessary.