Name: Ayuni Binti Razali Track: Project Management Office (PMO) Part A 1.

What are the four basic elements in accounting? a. Asset b. Liability c. Equity d. investment 2. What are:a. Balance Sheet: A balance sheet is a snapshot of a business financial condition at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises assets, liabilities, and owners or stockholders equity. b. Profit Loss: profit and loss statement (P&L) is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). c. Cash Flow: Cash flow is the movement of money into or out of a business, project, or financial pro. A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance. An accounting statement called the "statement of cash flows", which shows the amount of cash generated and used by a company in a given period. It is calculated by adding noncash charges (such as depreciation) to net income after taxes.

Part B

1. What is the most important element in business plan that can determine the liability and competitiveness of a business? Financial plan Because the financial plan shows investments, loans, accounts receivables and payables, it is one of the most important parts of a business plan. Without this section, the plan cannot prove the company would be a viable business. From financial assumption, these are critical to properly convey the "reasons behind the numbers" for outsiders reviewing financial projections. Break-Even Analysis These figures demonstrate the volume of sales, in units and dollars that must be generated to cover fixed and variable expenses. At the break-even point, its start becoming profitable. Sources and Uses of Funds This section explains which sources to expect to secure capital from, and what the specifically plan to spend it on. Investment Structure and Objectives This section outlines the amount of capital needed, various investment structures, and the estimated return to investor. It is critically important to tell investor how they will recoup their money, when they can cash out, and what they will receive as a return. Financial Ratios Providing standard financial ratios helps to analyze how well the company will perform compared to other companies within the industry involved.