Professional Documents
Culture Documents
Of the five measures of central tendency discussed, the mean is by far the most widely used.
It takes every score into account, is the most efficient measure of central tendency for normal
statistical procedures for drawing inferences about means. On the other hand, the mean is not
appropriate for highly skewed distributions and is less efficient than other measures of central
The median is useful because its meaning is clear and it is more efficient than the mean in
highly-skewed distributions. However, it ignores many scores and is generally less efficient
The mode can be informative but should almost never be used as the only measure of central
structure and very little, if any focus. It has been said that management has four basic
functions – planning, organizing, leading and controlling. Common sense dictates that
without these principles of management being in place an organization would have trouble
achieving its aims, or even coming up with aims in the first place! A classic theory on the
principles of management was written by Henry Fayol. It seeks to divide management into 14
principles. We’ll take a look at these basic principles of management and explain them in
easy to understand terminology. The purpose of this project is to see the Principles of
Management being implemented in real life. With its help we shall get the information
whether the principles of management which we come across in the books are actually true?
And whether by following the principles of management the efficiency of the management is
actually enhanced.
The final financial statement is the Statement of Cash Flows. It is sometimes referred to as
the sources and uses statement, as it shows the sources of cash for the company and then how
it was used over a period of time. The time period measured is typically a month or quarter or
year. Many people don’t focus on the Statement of Cash Flows. They simply want to know if
the company is profitable and how strong and liquid it is. Other people will say that the
statement of cash flow is the most important statement, because they get paid for what they
sell to companies through cash flow. For those in the credit industry, we constantly hear “we
can’t pay right now because we’re having cash flow problems”, so understanding cash flow is
very important to understanding the company’s overall financial health and its operating
profitability. The cash flow statement is broken into three categories and then a final
summary section. The three categories are cash flows from operating activities, cash flows
from investing activities, and cash flows from financing activities. Once these cash flows are
calculated, they are added together to arrive at net cash flow, and then this is added to the
cash balance at the beginning of the period to calculate the cash balance at the end of the
on the cash generating ability of a company. The statement records the actual movements in
cash in an accounting period. All cash received (inflows) by the company, and spent
(outflows) by the company will be shown in this statement. Cash flows are classified under
three heads — operating, financing and investing activities. The first two sections show the
two ways the company can get cash. Operations means “making” money by selling goods
and services; Financing means “raising” money by issuing stocks and bonds. The third
section shows how the company is spending cash, Investing in its future growth. If you’re
interested in the stock of this company, you’d like to see that they can pay for the “investing”
Classification of the recorded transactions is done in the ledger. Final balances (balance b/d)
appearing in different accounts in the ledger should appear in the trial balance. The total
debits of different accounts should be equal to the total credits. When total debits are equal to
total credits, it is said that the trial balance is balanced. Balanced trial balance is only an
indication that there is arithmetical accuracy of accounts. After that the final account
prepared to know the gross profit / gross loss and net profit / net loss. And finally balance
sheet prepared.
For this project we collect data of a firm for a particular financial year which is easily
available online. Begin with Journalising those transactions, post them to Ledger Accounts,
prepare a Trial Balance, Trading & Profit & Loss Account and the company's Balance Sheet.
Following are a few transactions of M/s. Rajesh Traders consisting of 16 transactions along