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Financial Accounting Assignment PDF

Added on - 09 Dec 2020

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FINANCIALACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Evaluate the sources of finance available to a business owner...................................................1TASK 2............................................................................................................................................4Evaluation of different forms of business units with their benefits and limitations...................4TASK 3............................................................................................................................................6Definition and comparison of financial accounting....................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONAs working in aDeloitte Consulting firm, various information required by new as wellas old employee's. Basic of this report is financial accounting which means summarizing andanalyzing all records of finance activities of organization. Present report will provide informationabout various sources of funds with its benefits and limitations. The report will criticallyexamine various units of business firm such as sole proprietorship, partnership and limitedcompany with their advantages and disadvantages. Later, this assignment will come up with themeaning of management and financial accounting with their major differences.TASK 1Evaluate the sources of finance available to a business ownerTo raise finance, every organization needs sources of fund to increase the workingcapital. Funds are basically of three types i.e. long term, short term and midterm sources of funds(Robson, Young and Power, 2017). Each category of funds includes various like venture capital,government grants, retained earnings, loans, public deposits, lease financing, etc. some arediscussed under.Loans from financial institutionLoans from financial institutions are the source to raise funds for business owner. It is animportant source of finance. Business owner can lend the money from bank. For this, owner hasto perform certain legal formalities to show that the organization is able to pay back lend money.Advantages of loan from financial institutionThe burden of payback is less as it allows making repayment in easy installments.Financial institution permits long term loans which are not provided by commercialbanks (Beatty and Liao, 2014).Disadvantages of loan from financial institutionLoan from financial institution is a tough process because, too many formalities makesthe procedure time consuming.They do not grant the loan easily.Issue of sharesThe fund obtained by issuing the shares is known as share capital. Business owner canraise funds by issuing the shares. The ownership of a company is represented by equity shares.1
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