Financial Accounting
Inventory Levels[1]
Budgets[2]
Balance Sheet[3]
Cash Flow[4]
Income Statement[5]
-Cost Of Money Analysis[6]
-Bank accounting, including LG and LC
-Asset depreciation accounting
-Standard Financial Ratios(Refer to Annex-1
under the title-“Financial Ratios””)
-Purchase ledger and A/P
-Sales Ledger and A/R
[1]
Enas refaat:
When discussing inventory from a company point of view, it includes purchased material, work-in-process, and finished goods
[2]
Enas refaat:
The company identifeis in the budget the realistic levels of inventory it will need to hold at each period through out the year.  Some of the considerations are such as seasonality which can cause product build up prior to the peak season, and the anticipated overall sales volumes. The company has to accept the cost that holding invenotry will incure.
Budget contains also operation expenses, and overhead expenses as well as cash allocated to assets purchasing.Budget items should be freely identified by the user.
[3]
Enas refaat:
A balance sheet is a list of assets and liabilities, with inventory being classed as an asset.  It is important that the inventory is not over valued or obsolete, else it will reflect a greater assset value than it is really worth.
An accounting term used for this is that the inventory should be valued at the lower of cost or net realizable value.  In other words, if it could only be sold at a price lower than the cost price, then that is the price at which it should be held.
[4]
Enas refaat:
An important factor to be considered is the time the inventory will be held, in relation to the payment terms.  If the inventory is held longer than the payment terms  then there will be a need for extra cash to pay for the inventory until the product is made, sold, and payment received.
[5]
Enas refaat:
This identifies the income and expenditure for an period of time.This can be affected by an incerease in the level of work-in-process and finished goods inventory.  Direct lable and overheads are recovered by  the completion of work in manufacturing.  This will reflect on the income statement as a recovery of labor and overhead cost, so the inventory levels must be considered at the same time.  If not it could be that the company is building product (recovering labor and overhead) but not selling finished goods inventory.  That of course doesn't generate real income, but does incure expense.
[6]
ghannam:
Cost of money held in the inventory value and the cost of money borrowed to fund expenses.