DUE DATE 26th December
Part A: Essay Questions (25)
1. Define accounting.
Accounting is the information system that measures business activity, progress the data into reports and communicates the results to decision makers. And accounting is the language of business. The better you understand the language of business the better you can manage your own business. For example, how will you decide whether or not to borrow money? You to consider your income and whether or not you will be able to pay back that loan.
2. Decision makers need accounting information. Discuss, list and explain 4 types of people who use accounting information.
Decision makers need information. The bigger the decision the more information. Here are 4 types of people who use accounting information:
1- Individuals: you use it to manage your cash, to evaluate a new job, and to decide whether or not you can afford a new computer. 2- Businesses: they use it to set goals, to measure progress toward those goals, and to make adjustments when needed. 3- Taxing authorities: Local state and federal governments> income tax is figured using accounting information. Sales tax depends upon company sales. 4- Investors: they often provide the money to get a business going. To decide whether to invest, a person predicts the amount of income to be earned on the investment.
3. In details ,explain the difference between Financial Accounting and Management Accounting
Financial accounting: provide information for external decision makers, such as investors and lenders.
Managements accounting: focuses on information for internal decision makers, such as the company’s managers.
4. List and explain any four types of Business Organizations.
1-Proprietorships: he has a single owner, called the proprietor, who often manage the business. Proprietorships tend to be small retail...