Financial Accounting Assignment: Types of Business and Accounting Principles

Learning Outcomes  
At the end of the assignment, you should be able to demonstrate that you are able to:
(i)Describe the nature and the different types of business in terms of sole-proprietorship, partnership and company.
(ii)List the users of accounting information in terms of the information they need.
(iii)List the flow of the accounting data with respect to the accounting cycle. 
(iv)Explain and apply key concepts and principles of financial accounting using various business scenarios.
(v)Apply the double entry accounting system concept to record business transactions.

Report format and length

Your written report submission should contain the following saved in one Microsoft Word file : 

(a) A written report using Microsoft Word of not more than 3 pages (excluding cover page and the bibliography) – Arial Font size 12 with single spacing. You are strongly advised to organise your report in a manner based on the rubrics for the written report specified in Appendix 1.

(b) A bibliography of references for the sources of industry research data or any other supporting schedules (also using Microsoft Word).

Written Report Guidelines 

Introduction 
Provide a brief introduction summarising what your report is about. 

Part 1 Scenario 
If you were to start your own business, what business will you go into and which business structure will you choose for your business? 
List at least 1 characteristic each for sole proprietor, partnership, private limited company and provide 3 reasons to justify your choice of business structure.

Part 2 Industry Research 

(a)Users of accounting information 

Select any Company of your choice.
Describe the nature and characteristic of the company.
List 1 possible internal and 1 external user of the financial statements of the company and explain how the users typically use that financial information and the kind of decisions they will make from using the company’s financial information.

(b) Accounting Principles and Journal entries 
Using the same Company you selected, briefly describe the following:

Section 1:  Revenue 
Identify and list 2 main sources of revenue earned by the Company (based on the business segments/operations)
State and briefly explain 1 key accounting principle applicable
List down the applicable accounting entries to be posted for such revenue earned, assuming both cash and credit transactions.
 
Section 2 :  Expenses
Identify and list 2 main expenses incurred by the Company
State and briefly explain 1 key accounting principle applicable
List down the applicable accounting entries to be posted for these expenses incurred, assuming both cash and credit transactions.

Section 3 :  Owner’s Equity
List 2 owner’s equity components of the Company
State and briefly explain 1 key accounting principle applicable
List down the applicable accounting entries to be posted for each of the components which you have identified. 

Section 4: Select any of the above cycle (Revenue or Expense) and list the flow of the accounting data with respect to the accounting cycle. 

Part 3 Conclusion and report 
Provide a brief conclusion to your report and share personal reflections and learning from completing this assignment.