chapter  1
1 Pages

Introduction

Trading organizations, however, must keep detailed and accurate accounts if they are to stay in business at all, and if they hope to plan for the future in any meaningful way. For example, if manufacturers were approached to make a new product but did not have the right equipment to put the product together, they would have to buy new plant and machinery. If they did not know how much cash they had available, what was owing to them and how much they had to pay out in the next few weeks, how could they possibly agree to take on the contract?