Some ite ms, such as artworks, are t raded at prices that reflect the personal
value placed on them, rather than their practica l value.
In general, however, prices of ite ms such as p roperty, investments, equipment
and general goods trade at a price that reflects their pract ical value.
1.7.1. Record keeping
Accurate record keeping is the foundation of a successful business activity.
Financia l records involve a record of cash receipts and cash payments ,
purchases and sales of assets, and changes in asset values.
Other records include stock inventories, customer and shipping details, and
product informat ion.
Financia l records can be reconciled against bank statements to correct
missing ite ms and errors .
In the case of stock lists , these can be checked by a manual stock count.
1.7.2. Cash facilities
Cash flow proble ms can occur due to some of the following events:
? Timing proble ms, where large payments are due before income
amounts are received.
? Defaults on payments by customers, such as accounts not being paid
by the due date.
? Slow sales.
? Seasonal issues, when sales occur at certain times of the year.
? Cash outflows related to large develop ment projects