2. *Business
An economic system in which goods and services are
exchanged for one another for money, on the basis of their
perceived worth.
*Financial Records
Financial records of business transactions, flows of finance,
the process of creating wealth in an organization, and the
financial position of a business at a particular moment in time.
3. Business and Financial Records are the records and report of a
business transaction and events for business firm and other
organization.
EXAMPLES of Business and Financial Records:
1. Business Correspondence
--Business correspondence or business letter is a written
communication between two parties. A means through which
views are expressed and ideas or information is
communicated in writing in the process of business activities.
Memorandums, reports, proposals and other forms of writing
used in organizations to communicate with internal or external
audiences.
Aims of Business Correspondence
• To convey messages
• to give essential information
• to elicit a response
• to build new friendships and keep old ones
4. Example of Endorsement letter
WARREN TAYLOR M.D
310 SUNSET BOULEVARDS
CENTERVILLE N.Y 14029
April 25, 2011
Dr. Bill Johnson
Superintendent
Bellevue Hospital
Shore Drive Center
New York 14029
Dear Dr. Johnson:
On April 20 I endorsed a patient of mine,Mrs. Charles Anderson to your hospital for an operation for acute
appendicitis. No semiprivate bed was free at that time, and because of the emergency, she was placed in the private
pavilion.
Mrs. Anderson is living on a small pension, and her means are quite limited. She has no immediate
relatives who can help her. May I therefore ask you to transfer her to the semiprivate as soon as possible? Otherwise,
the patient will not be able to meet the expenses involved, and the situation will become a financial catastrophe for
her.
I will appreciate anything you can do to help this patient.
Sincerely yours,
Geo Taylor, M.D
5. 2. PURCHASE ORDER
• PURCHASE ORDERS (PO)
• --is a commercial document issued by a buyer to a
seller, indicating types, quantities, and agreed prices
for products or services the seller will provide to the
buyer.
• Purchase order should show from whom the
merchandise is being purchased, the date ordered, the
method of shipment, the terms of payment, the
quantity ordered, a description of the item, the cost of
each item, total cost of all items ordered, desired date
of receipt of the merchandise and the name and
signature of the person ordering the merchandise.
7. 3. B I L L
--A bill or invoice is a document requesting
payment for an order previously supplied.
Presentation of a bill is common practice on the
part of credit card companies, utilities, and other
service providers.
The bill for something is the total price of all
services and goods received but not paid for,
and are presented in the expectation of
immediate payment by the due date.
9. 4. RECORDS OF INCOME
RECORDS OF INCOME
--It provides a record of a company's revenues and
expenses for a given period of time, and thus
serves as the basic measuring stick of
profitability. In fact, it is often referred to as
the profit-and-loss statement, with the bottom
line literally revealing which result a company
achieved.
10. 5. RECORD OF EXPENSE
--A document or written record of money spent that can serve as legal evidence
of a transaction
6. FINANCIAL STATEMENT
--are use to provide an overview of what a person owes and what he/she owns. Financial
Statement must provide a “true and fair” description on the financial position of a company in
line with accounting standards.
-Four (4) Main Financial Statement-
• Balance Sheet –This shows what company owes and how much you own at a fixed point in time.
• Income Statement –This shows how much money a company made and spent over a period of time.
• Cash Flows Statement –shows the exchange of money between a company and the outside world also over
a period of time.
• Statement of Shareholders –(“equity”) shows exchanges in the interest of the company’s shareholders
overtime.
11. Example of Financial Statement
Month YTD (6 mons.)
SALES $ 10,000 $ 60,000
*Expenses
-Purchases 3,000 17,000
-Wages 2,500 14,000
-Rent 1,000 6,000
-Insurance 200 1,200
-Utilities 500 2,000
-Payroll Taxes 600 3,600
-Advertising 500 3,000
-Depreciation 500 3,000
-Accounting & Legal 200 1,200
-Other expenses 500 3,000
*Total Expenses 9,500 54,000
*Profit also called Earning or net income $ 500 $ 6,000
12. THANK YOU and GOD BLESS US
BY:
Hazel M. Dimaculangan
III – C O M