Unit 10 Final Assignment
May 27, 2012
Throughout my journey in Accounting for Non-Accounting majors I have crossed many thresholds to make me a stronger candidate to enter the business world. Beginning in Unit 1 I gained a lot of information on how important accounting is in a business. The first topic that I found beneficial for my knowledge in the business world is the different types and forms of a business. The objective for most businesses is to earn a profit. The three types of businesses operated for profit are service, merchandising, and manufacturing. A service business provides services over products to their customers. A merchandising business sells products that are purchased from other companies then which are passed on to their customers. A manufacturing business manufactures their own product which is then sold to their customers. Following the different types of businesses follows the four different forms. The four forms of a business are a proprietorship, partnership, corporation, and a limited liability company. The first key concept that is beneficial for my future is the accounting equation which is assets equal liabilities plus stockholders’ equity. The financial accounting system is also an important topic to keep in mind when entering the business world. This system consists of a set of rules for determining what, when, and the amount that should be recorded for economic event. It is also a framework when preparing the financial statements. Understanding the different financial statements is essential to the success of all businesses. They can be used as a roadmap to success for a business. The balance sheet provides a clear picture of a business’ financial position at any given time. It provides information pertaining to the assets and liabilities that belong with the business. At the end of the balance sheet the balance must equal out, if not an error has occurred. Liabilities and stockholders’ equity...