CHAPTER ONE INTRODUCTION
Financial accounting is the employment of the firm’s balance sheet and income statement to establish some relationship between one figure and another in order to highlight the strengths and weakness of the concerned business. The balance sheet of a firm is also called the financial position because it shows the position of the business in monetary term at a given point in time while the income statement show how the position depicted by the balance sheet has been attained. The results of financial analysis are normally expressed as financial ratios, which could be broadly classified as liquidity, leverage, activity and profit ratio. The suppliers of the firm’s funds and the investing public are usually interested in these ratios. But the nature of interest expressed on the firm determines the ratios to be emphasized by each concerned parts. This implies that different people emphasize on different ratios and as a result financial analysis means different thing to different people The Accounts Payable System is a Masterpiece module developed by Computer Associates. The system is designed to facilitate the payment of external vendors as well as the reimbursement of staff for General Claims and Student Refunds. The Accounts Payable system provides the facility to maintain, track and report invoice information for vendors as well as providing users with on-line interrogation features. Payments made from the Accounts Payable System can either be by cheque or EFT. A flag on each vendor determines the payment method. The Accounts Payable Accounting System provides a convenient way for you to process cheque, print checks and maintain a history of your accounts payable. It can be used as a simple check writer or a sophisticated accounting system that allows entry of prepaid, accrual, recurring and pending items with disbursements as checks. It can export files to ACH, check reconciliation and general ledger providing one of the most effective accounts payable systems available today. This system is used to identify all of the detailed transactions that posted to the Individual Master Files (IMF), Business Master Files (BMF), Individual Retirement Accounts File (IRAF), and Non-Master Files (NMF) during the fiscal year. These detail transactions are broken down into Revenue transactions, Refund transactions, Other Transactions that are part of the fiscal year, and Other Transactions that are not part of the fiscal year. Once these breakouts are done, revenue and refund reversal transactions are matched to the transactions they reverse. Paper and electronic reports are generated and distributed to the Office of the CFO and to GAO. The detailed files provide support for the amounts from the Interim Revenue Accounting Controls System (IRACS). The files are also made available to GAO for sampling and to validate the financial statements.