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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

distributions and is mathematically tractable making it possible for statisticians to develop

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

tendency when extreme scores are possible.

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

than the mean.

The mode can be informative but should almost never be used as the only measure of central

tendency since it is highly susceptible to sampling fluctuations

Management is essential to any organization that wishes to be efficient and achieve its aims.

Without someone in a position of authority there would be organizational anarchy with no

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

period. We will now review each of these sections.

The Cash flow statement is the final component of a company’s annual report. It throws light

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”

figure out of the “operations” figure, without having to turn to “financing”

Meaning of Accounting has been already discussed. Accounting involves recording,

classifying and summarizing financial transactions. Recording is done in the journal.

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

with Journal entries, Ledgers, Trial Balance, Financial Statements.