logo

(Solution) Financial Accounting Assignment

   

Added on  2020-12-10

10 Pages2802 Words179 Views
Financial Accounting
(Solution) Financial Accounting Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................11.Financial accounting and its purpose..................................................................................12. Regulations relating to financial accounting......................................................................13. Accounting rules and principles:........................................................................................24. Consistency and material disclosure convention and concepts:.........................................3PART 2............................................................................................................................................31. Sole traders and its advantages and disadvantages.............................................................32. Capital for sole traders........................................................................................................43. ASSETS=LIABILITIES+EQUITY...................................................................................44. IAS 1: Financial statement and its purpose with need.......................................................45. Statement of sole trader and company................................................................................56. IAS 2- Inventory and evaluation........................................................................................57. Accrual concept..................................................................................................................68. Accounting Consistency and Prudence concept:................................................................69. Depreciation and its purpose in formulating accounting statements..................................610.Purpose of preparing Bank Reconciliation Statements.....................................................611. Control account................................................................................................................612. Suspense account..............................................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
(Solution) Financial Accounting Assignment_2
INTRODUCTION The report comprises of two parts. The first part includes sole trader and company's financialstatement, inventory accounting standard, accrual, consistency, prudence concept, purpose ofcalculation depreciation and creating bank reconciliation statement, use of control account,suspense account and the second part consist of financial accounting regulation and its purpose,accounting rules and principles, materiality and consistency conventions and concepts (Beatty,2014).PART 11.Financial accounting and its purposeIt is the field of accounting related to the concise description, investigation and recordingof financial transactions happening in a business. These transactions are recorded in financialstatements, including balance sheet, income statement, cash flow statement etc. These statementsare used to show financial position of the company. It is a part of accounting that uses money tomeasure system execution rather than as an element of production.Purpose of Financial AccountingThe purpose of financial accounting is to provide such information that is facilitative forgood economical decision making. The main purpose of it is to prepare financial statements thatprovide accurate information about the performance of the organisation to the outer parties likeinvestors, stakeholders, suppliers and taxation department. There are various statements preparedin financial accounting such as income statement, balance sheet, cash flow statement etc. Thereare different purposes for each statement, income statement is used to determine the profitcapacity of the organisation, balance sheet is prepared to show the current status of theorganisation to the reader. Cash flow statement is helpful in determining the liquid strength ofthe organisation. Its object is to effectively manage the material resources accessible. It is alsohelpful in facilitating social functions and control.2. Regulations relating to financial accountingThere are various regulation that an organisation is needed to follow few of thoseregulations are explained below:1
(Solution) Financial Accounting Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Accounting Statement : Assignment
|11
|3209
|416

Concept of Financial Accounting and Purpose - PDF
|11
|3040
|105

Financial Accounting and Its Purpose - Doc
|16
|4181
|110

FINANCIAL ACCOUNTING PRINCIPAL TABLE OF CONTENT INTRODUCTION 4 Report4 Financial Accounting and its Purpose
|28
|2966
|79

Solved Financial Accounting : Assignment
|30
|4790
|26

Financial Accounting Principles Assignment - RBS Accountants Ltd
|26
|7021
|485