SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
SW → Internal OT → External
Financial Statements
Management accounting
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The creation of financial information for use by the internal users within the business in order to predict, plan, review and control the financial performance of the business.
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Management accounting data:
- Revenue, cost and profit objectives
- Decision trees
- Investment data
- Capital structure data and source of finance
- Cash flow forecast and outcomes
- Budget and outcomes
- Break-even charts
- Etc
Financial accounting
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The provision of financial information to show external users the financial position of the business; it concentrates on historical data.
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Financial accounting data:
- Cash flow statements
- Data on profitability
- Capital structure
- Sources of finance
- Income statements
- Balance sheets
Income Statements
- Profit and loss accounts
- Historical record of the income and expenditure over a period of time (typically the preceding year or quarter)
- Sole trader, private limited company, public limited company
- Gross profit, gross profit margin, net profit, net profit margin
Example income statement