Recording Business Transactions

Recording Business Transactions

Contents
Introduction.................................................................................................................................................3
MAIN BODY.................................................................................................................................................3
ASSESSMENT 1....................................................................................................................................3
PART 1....................................................................................................................................................3
Part 2.......................................................................................................................................................5
Part 3.......................................................................................................................................................7
Part 4.....................................................................................................................................................11
REFERENCES..............................................................................................................................................13

Introduction
Accounting entails monitoring, categorising, revising and displaying money transfers by an
entity. These documents and the results collected from each other just provide basis for
evaluating financial reports and the position of the company (Bansal and Sunkara, AppDynamics
LLC, 2015). This assessment affects the processing of tax reports by separate entities and the
development of trial notes and revenue statements. Benefits and limitations are specified in
manufacturing corporations' taxation. The effect on business earnings of Covid-19 is also
addressed.
MAIN BODY
ASSESSMENT 1
PART 1
(a) Who are the decision makers referred to in the above definition and explain their need for
accounting information.
Manager- Executives are also asked to take steps so that conflicts can be addressed.
Decision-making and problem-solving require ongoing processes in which situations or
concerns are analyzed, options discussed, decisions taken and necessary measures taken
(Hyoseok and Shinde, Rakuten Inc, 2016). The method of decision-making is always
very brief and the cognitive analysis is almost instantaneous. In certain cases, the
procedure can take weeks or months. The whole judgment process depends on the best
information available to the relevant individual at the right time. Managers take crucial
decisions pertaining to multiple kinds of aspects in the sense of the above business.
Role of accounting information- Management Accounting Reporting is designed to help
the firm's administrators, while accumulation research is directed at providing non-
organizational parties with financial data.

Owner- In order to take corrective decisions, the company owner often plays a crucial
role. Key firms usually guide the judgment method, work closely with additional owners,
fix challenges, delegate assignments to other members or team leaders (if required),
complete the task, have the final approval authority (if / when used) and are generally
accountable for the success of the different components. Tesco plc's owner plays a crucial
part in decision-making. They analyze key accounting data.
Role of accounting information- Accounting offers significant financial information of
relevance to decision-making for management and other stakeholders. Assessment of the
function of the owner in preserving and managing the organization's profits. Decide
whether company money is lent or invested.
(b) Identify and explain the advantages and disadvantages of any two for profit business
structures which an accountant may encounter.
Accounting- Accounting is the system of reporting of cash activities involved with
companies. The reporting protocol demands that these operations be summarized,
checked and reported to supervisory authorities, authorities and tax collectors (Ellis,
Onstream Media Corp, 2016). The profit corporation describes some benefits and
drawbacks below:
Benefits:
Full and Systematic Record- Accounting relies on generally accepted norms and on the
empirical means by which accounts represent corporate transactions. For example, all
corporate operations are periodically and thoroughly registered. As any sale can be
reported and evaluated by the same means, the human limitations that cannot be taken
into consideration in all transactions are overcome by reporting.
Helps to collect loans- Business must have sufficient capital for further expansion.
Occasionally, because of the shortage of capital, the organization could not do well. In
such situations, by taking loans from other institutions such as banks, more funds may be
collected. These commercial banks offer loans on the basis of the business entity's