By Ruth A. Schmidt, Helen Wright

It is a middle textual content for college kids learning the monetary points of selling for the 1st time. It strikes systematically in the course of the topics coated within the majority of classes, reinforcing studying via a couple of pedagogical good points together with:

*numerous routines and examples

*learning pursuits before everything of every bankruptcy and summaries on the finish

*case stories to tug jointly the parts up to now coated

The use of spreadsheets is built-in into the textual content.

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Extra resources for Financial Aspects of Marketing

Example text

1 Learning objectives When you have finished working through this chapter you should be able to carry out the following tasks in the context of a simple integrated example providing summary information on all the business transactions of an accounting period Businesses are under a legal obligation to produce a set of financial statements at regular intervals in order to provide information to their shareholders and to the Inland Revenue. The annual reports of large public limited companies include a balance sheet and a profit and loss account for the financial year.

At the end of July a stock of beer remains which is valued at £576. Calculate the cost of goods sold and the gross profit for the 'White Uon' for the month of July. In the above examples the accurate calculation of the cost of goods sold relied on an accurate valuation of stock both at the beginning and end of the period. This raises the question how best to go about valuing stock. Since one of the principles of accountancy is that of prudence, it is the norm to use whichever is lowest of the following two: either cost (that is, how much it cost to purchase the item from the supplier) or net realisable value (that is, how much the business would be able to get for it if it were to be sold now).

50 each. 65 each. 75 26 INTRODUCTION TO RNANCIAL STATEMENTS each. In each of the following, indicate the correct statement by drcling the appropriate letter. 5 Depreciation A similar issue as with the valuation of stock arises in the treatment of the cost of fixed assets. As you know, the matching concept implies that the profit and loss account should bring together the sales revenues of a finandal period with those costs that have gone into generating those sales. Example During the 199X finandal year a clothes manufacturer acquires a new sewing machine at a cost of £600.

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