Purpose of Financial Statements The objective of financial statements is to provide information about the financial position‚ performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions (IASB Framework). Financial Statements provide useful information to a wide range of users: Managers require Financial Statements to manage the affairs of the company by assessing its financial performance and position and taking important business
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always been the company’s foundation or structure. There are many structures for a business that will provide both advantages and disadvantages. This paper will discuss each structure. Business Structure There are three types of business structures‚ partnership‚ sole proprietorship and a general corporation. Each structure has its disadvantages and advantages but the key is doing the research to determine which business structure will be suitable for your business venture. Many people may not be interested
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being a sole trader‚ partnership or a company. Sole traders carry on business alone‚ thus leaving the owner with complete control of the enterprise and its employees‚ ownership of all profits‚ business assets and personal responsibility for all debts. It is the simplest business structure to set up and maintain. A partnership is one better than a proprietorship because it has partners sharing the managerial role. It also has the ease of formation through a simplistic partnership agreement with low
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MANAGEMENT ASPECT A. Form of Ownership The business shall be organized under a general partnership contract as defined in Article 1767 of the Civil Code of the Philippines as‚ a contract of two or more persons who bind themselves to contribute money‚ property or industry into a common fund with the intention of dividing profits among themselves. In terms of liability the partnership shall be under the general partnership where all of the partners are liable jointly and severally with respect as to the
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proprietorship‚ the partnership‚ and the corporation. Other specialized forms of business organization also exist. Sole proprietorships are the most numerous. A sole proprietorship is a business owned by one person who operates it for his or her own profit. unlimited liability; his or her total wealth—not merely the amount originally invested—can be taken to satisfy creditors. A partnership consists of two or more owners doing business together for profit. Partnerships account for about
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Sole Proprietorship A business with one owner who is responsible for all features of the business. Everything that happens in the company from the daily operation to the legal obligations are controlled by one individual. Sole Proprietorship Advantages: • Convenience - Usually the least costly to begin. Sole proprietorships are easy to start up. They entail acquiring the proper licenses and permits. Regulations very from industry‚ state‚ and county. There is no administrative configuration
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Directors whose responsibility was to question and challenge new partnerships‚ ventures‚ and decisions within the company. On several occasions‚ Andrew Fastow‚ the company’s Chief Financial Officer approached the board of directors with new investment partnerships which the board approved with very little questioning. Some of these partnerships created a conflict of interest due to the fact that Fastow was not only managing the partnerships‚ but he was also an investor in an outside entity that took
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ARTICLES OF THE PARTNERSHIP OF PINOY CHOW KNOW ALL MEN BY THESE PRESENTS: That‚ we undersigned‚ all of the legal age and residents of the Republic of the Philippines has agreed to form a general partnership under the terms and conditions herein after set forth and subject to the provisions of existing laws of the Republic of the Philippines. AND WE HEREBY CERTIFY: ARTICLE I: That the name of the partnership shall be ______________________________ ______________________________________PINOY
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this business and become a partner in the firm Sears and Roebucks. Fred’s investment in the partnership consists of P12‚000 in cash‚ and the following assets of the proprietorship: accounts receivable P14‚000 less allowance for doubtful accounts of P2‚000‚ and equipment P20‚000 less accumulated depreciation of P4‚000. It is agreed that the allowance for doubtful accounts should be P3‚000 for the partnership. The fair market value of the equipment is P17‚500. Instructions: Journalize Fred’s admission
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easily start a business or end it on their own terms. GENERAL PARTNERSHIP: This kind of partnership is where two or more people are equal owners and are equally active‚ liable and authoritative. Liability – Each person has unlimited personal liability for the business. Like a sole proprietorship‚ any debt incurred by the business will have to be covered personally by the partners. Income Taxes – With this kind of partnership federal income tax is not applied. However‚
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