Financial Accounting
anciSEGi University
2013
Coursework
BBM – Financial Accounting (FIN 2241)
SHARIFUDDIN HAZIQ BIN ABDUL AZIZ SCM 022587 Ms. Janice
Contents
No. | Title | Pages | 1 | Executive summary | 2 | 2 | Question 1 | Introduction | 3 | | | Sole Proprietorship | 4 | | | Partnership | 5 | | | Limited Liabilities Company | 6 | | | Accounting | 7 | | | Benefits of accounting | 7-9 | 3 | Question 2 | Differences of income statement and balance sheets | 10 | | | Tabulation of income statement and balance sheets | 11 | | | Use in decision making | 11 | | | Five users and differentiation of the information needs | 12 | 4 | References | 13-14 | 5 | Bibliography | 15 |
Executive Summary
The introduction to a business consists few steps that should be taken. Regarding to Mr Peter who was once an engineer, he wants to open up a new business after his retirement. Therefore, he needs to know what kind of business industry he would look like to do. Since he is an engineer, an electronic service is suggested. The next step is would be setting up a business entity. He needs to know that they are three type of it which is Sole Proprietorship, Partnership and Limited Liability Company. In each of the business entity has their own characteristics, advantages and disadvantages need to be considering before choose any of it. Furthermore, Mr Peter also needs to know what is accounting. It is a very important aspect in a business to know the company’s profit or loss. It is also helps the business to generate cash flow for the company. In the other hand, in the accounting it selves have income statement and balance sheets that can guide the business. Both of the financial statements have their own differences. Even each of the use is different for every user that need of them.
Question 1
To: Mr Peter
From:
2013
Coursework
BBM – Financial Accounting (FIN 2241)
SHARIFUDDIN HAZIQ BIN ABDUL AZIZ SCM 022587 Ms. Janice
Contents
No. | Title | Pages | 1 | Executive summary | 2 | 2 | Question 1 | Introduction | 3 | | | Sole Proprietorship | 4 | | | Partnership | 5 | | | Limited Liabilities Company | 6 | | | Accounting | 7 | | | Benefits of accounting | 7-9 | 3 | Question 2 | Differences of income statement and balance sheets | 10 | | | Tabulation of income statement and balance sheets | 11 | | | Use in decision making | 11 | | | Five users and differentiation of the information needs | 12 | 4 | References | 13-14 | 5 | Bibliography | 15 |
Executive Summary
The introduction to a business consists few steps that should be taken. Regarding to Mr Peter who was once an engineer, he wants to open up a new business after his retirement. Therefore, he needs to know what kind of business industry he would look like to do. Since he is an engineer, an electronic service is suggested. The next step is would be setting up a business entity. He needs to know that they are three type of it which is Sole Proprietorship, Partnership and Limited Liability Company. In each of the business entity has their own characteristics, advantages and disadvantages need to be considering before choose any of it. Furthermore, Mr Peter also needs to know what is accounting. It is a very important aspect in a business to know the company’s profit or loss. It is also helps the business to generate cash flow for the company. In the other hand, in the accounting it selves have income statement and balance sheets that can guide the business. Both of the financial statements have their own differences. Even each of the use is different for every user that need of them.
Question 1
To: Mr Peter
From:
References: Ken Low, KL Management Services (2002-2011). Type of business entities in Malaysia. Retrieved from: http://www.klmanagement.com.my/company-services/type-of-business-entities-in-malaysia Ken Low, KL Management Services (2002-2011) Ken Low, KL Management Services (2002-2011). Partnerships. Retrieved from: http://www.klmanagement.com.my/company-services/type-of-business-entities-in-malaysia/#partner Wikipedia (n.d) Chinoy Kumar (2012). The advantages of sole proprietor. Retrieved from: http://www.preservearticles.com/201101153393/advantages-and-disadvantages-of-sole-proprietor-form-of-business.html Knoj Badami (n.d) how-to-start-a-business-guide.com (2009). Partnerships advantages and disadvantages. Retrieved from: http://www.how-to-start-a-business-guide.com/partnership-advantages.html The Advice Spot (2007-2010) SJD Accountancy (2012). Advantages and Disadvantages of a Limited Company. Retrieved from: http://www.sjdaccountancy.com/information/advantages_disadvantages_limited_company.html Leslie Truex, Demand Media (n.d) No author (n.d). Accounting. Retrived from: http://www.businessdictionary.com/definition/accounting.html Bizjump.com (2000) Joe Sangl (May 23, 2009). Income statements provide tools for better decision-making. Retrieved from: http://www.independentmail.com/news/2009/may/23/income-statements-provide-tools-better-decision-ma/ No author (n.d) Philip Dunn, The Institute of Certified Bookkeepers (21 September 2006). Use and Users of Financial Statements. Retrieved from: http://www.bookkeepers.org.uk/news/410 Bibliography Scott Holmes, Allan Hodgson, Paul Nevell (1991). The balance sheets equation (pages 39) The Accounting Equation. Accounting Students Handbook. Scott Holmes, Allan Hodgson, Paul Nevell (1991). Journal and ledgers (pages 47) The Accounting Equation. Accounting Students Handbook. Scott Holmes, Allan Hodgson, Paul Nevell (1991). Trial balance (pages 52) The Accounting Equation. Accounting Students Handbook.