0717513144 MNM3701 ASSIGN 2 2023
DISCLAIMER
The MNE3701 guide is centred on 2023 assignment 2. It is a product of internal
and external research that includes the study guide, prescribed textbook and
other authentic sources.
NB: Students must not copy and paste. For clarity, students are free to call on
the provided number and/ email.
, 0717513144 MNM3701 ASSIGN 2 2023
Table of Contents
QUESTION 1 ............................................................................................................. 2
By using practical examples, demonstrate how you would go about
constructing financial statements of your small business. (30) .......................... 2
Financial statements ............................................................................................ 3
Importance of financial statements..................................................................... 3
financial statements preparation......................................................................... 3
1. Recorded facts .............................................................................................. 3
2. Accounting conventions .............................................................................. 3
3. Personal judgments ...................................................................................... 4
3 types of financial statements............................................................................ 4
Balance sheet .................................................................................................... 4
Income statement.............................................................................................. 6
Cash flow statement ......................................................................................... 7
QUESTION 2 ............................................................................................................. 8
By using practical examples, demonstrate how you would go about conducting
financial forecasting for your business. (20) ......................................................... 8
4 common types of financial forecasting ........................................................... 8
1. Sales forecasting .......................................................................................... 8
2. Cash flow forecasting ................................................................................... 9
3. Budget forecasting ..................................................................................... 10
4. Income forecasting ..................................................................................... 10
QUESTION 1
By using practical examples, demonstrate how you would go about
constructing financial statements of your small business. (30)
DISCLAIMER
The MNE3701 guide is centred on 2023 assignment 2. It is a product of internal
and external research that includes the study guide, prescribed textbook and
other authentic sources.
NB: Students must not copy and paste. For clarity, students are free to call on
the provided number and/ email.
, 0717513144 MNM3701 ASSIGN 2 2023
Table of Contents
QUESTION 1 ............................................................................................................. 2
By using practical examples, demonstrate how you would go about
constructing financial statements of your small business. (30) .......................... 2
Financial statements ............................................................................................ 3
Importance of financial statements..................................................................... 3
financial statements preparation......................................................................... 3
1. Recorded facts .............................................................................................. 3
2. Accounting conventions .............................................................................. 3
3. Personal judgments ...................................................................................... 4
3 types of financial statements............................................................................ 4
Balance sheet .................................................................................................... 4
Income statement.............................................................................................. 6
Cash flow statement ......................................................................................... 7
QUESTION 2 ............................................................................................................. 8
By using practical examples, demonstrate how you would go about conducting
financial forecasting for your business. (20) ......................................................... 8
4 common types of financial forecasting ........................................................... 8
1. Sales forecasting .......................................................................................... 8
2. Cash flow forecasting ................................................................................... 9
3. Budget forecasting ..................................................................................... 10
4. Income forecasting ..................................................................................... 10
QUESTION 1
By using practical examples, demonstrate how you would go about
constructing financial statements of your small business. (30)
