accuracy of financial documents Flashcards
what do financial documents provide?
a record of the trading and financial transactions taking place between the enterprise (supplier) and its customers
what must all documents be completed be?
completed accurately
purpose:
why does an enterprise use financial documents for a range of purposes?
enables them to run smoothly
purpose:
what does it aid?
management decisions
purpose:
what can you calculate in financial documents ?
costs
revenues
profit/loss
purpose:
what can you track?
to track whether goods have been delivered
purpose:
what you can track goods of?
that have been returned as damaged or faulty, replaced or a refund given
purpose:
why does it include checking invoices?
to check that invoices have been paid and to chase any that are outstanding
purpose:
to provide what?
information for financial statements
purpose:
what can you determine?
how much tax is owned by the enterprise
purpose:
what can you maintain?
an accurate record of customers and suppliers for future business and marketing
the importance of accuracy:
what can it ensure of correct goods are delivered in?
to ensure the correct goods are delivered in the correct quantities to the right customer
the importance of accuracy:
what will an enterprise check for goods?
that customers are not being overcharged or undercharged for goods
the importance of accuracy:
what does an enterprise ensure to meet customer demand?
that the enterprise has sufficient inventory (stock)
the importance of accuracy:
what needs to be accurate?
the calculations of costs and revenues
the importance of accuracy:
what does it ensure of both the enterprise and customer?
that they both have a clear understanding of the terms of sale, including prices and delivery schedules
the importance of accuracy:
what does it enable the enterprise to accurately calculate?
the taxes it owns to the government
the importance of accuracy:
what does it allow managers to make?
strategic decisions
problems with inaccurate financial documents:
what may profits be?
over or understated
problems with inaccurate financial documents:
why may not all costs be?
not all costs are accounted for
problems with inaccurate financial documents:
what will investors be like in the enterprise?
lose confidence
problems with inaccurate financial documents:
what can be damaged?
reputation
problems with inaccurate financial documents:
what will not be accurate?
the financial documents
problems with inaccurate financial documents:
what can it lead to?
cash-flow problems
