Recording Business Transactions

Recording Business Transactions

Contents
Introduction.................................................................................................................................................3
Assessment 1...............................................................................................................................................3
Part 1.......................................................................................................................................................3
Part 2.......................................................................................................................................................5
Part 3.......................................................................................................................................................6
Part 4.....................................................................................................................................................10
REFERENCES..............................................................................................................................................13

Introduction
Accounting involves tracking, categorizing, revising and highlighting an individual's money
transfers. The foundation for the analysis of financial statements and the corporation's role is
provided by these records and the findings obtained from each other (Tillman, 2017). This
evaluation impacts the storage by various agencies of tax disclosures and the manufacturing of
trial reports and revenue declarations. Benefits and disadvantages are mentioned in the taxes of
industrial companies. Covid-19's effect on company profits is also discussed.
Assessment 1
Part 1
A. Decision-makers and need for accounting information
The descriptions and assessment of all statistical procedures involve accounting information in
just such a way that it can be identified in the document. Such results are very useful for
intelligent decision making. The success of the business is decided by efficient decisions from
buy to customer support (Adamyk, 2017). The numerous managers of the company take all
choices on the activation and work conditions, the institution of the profit objective, the making
plans of news stories and expenditures, the use of innovation for different production processes,
etc. A corporation's judgment control is based on its management mechanisms, which are
controlled by the advisory board or the committee members. For starters, for all of the clear
objectives of the firm, the Uber Executive Board, led by its Chief executive, Dara Khosrowshahi,
is accountable. The corporation retains an organizational structure that makes its actions on
behalf of the company's objectives, mission, principles and objectives. These operations are then
assigned to the individual department’s director. In analytical words, financial statements have
the necessary business statistics, making it easier for managers and analysts to make informed
decisions. Accounting statements are drawn up in line with industry-wide coherent general
systems and policies. The latter helps make them comparable to many other competing
companies who by business outcomes know their company's reputation. Company records can
provide a justification for managers to decide whether or not it will make an asset allocation
feasible and financially viable. In existing trade ecosystems, forecasts and presumptions also
depend on enhanced corporate financial reports. Not only is financial information relevant

because it facilitates correlation in itself but it also forms the basis for the extracting of valuable
knowledge from semi financial data.
B. Advantages and disadvantages of accounting for a business
Accounting controls and analyses, on the basis of the nature of the law, the financial records of a
large corporation. As seen in: Advantages and costs linked to the management of financial
documents.
Advantages:
Decision-making - Statistics and company decision-making are wanted by the executive team.
Account records of the business have a part to plan (Hanifatunnisa and Rahardjo, 2017). This
provides reports on the company's cash flows as well as other spending and sales, making it
possible to forecast operating surpluses or deficits in a timely fashion. This also aims to provide
oversight and responsibility, which helps to deter and avoid errors.
Proof in legal proceedings - Accounting records serve as an operational context for the
significant financial activity identified within. When any disagreement occurs, it will then act as
legal proof before the courts. Enterprises shall hold records in the format prescribed in the Act
and after having been reviewed by an external auditor, send them to the Registration.
Disadvantages:
Records just financial factors - One of the most relevant drawbacks of financial reporting is that
it only applies to the reporting of business transactions (Franceschi, 2017). Multiple alternative
have important consequences for market practices, such as customer dynamics, the political
climate, legal and administrative laws, etc. When providing strong business choices, they are not
reported in financial statements and have an incorrect image.
Historical existence - In the person expense accounts, sums are reported and market fluctuations
are not put into account (Härer, 2018). In the statements of accounting, this allows financial
records of historical significance. Such papers are then known to be a requirement for forecasting
future effects. It loses the valuation of capital for the duration and the adjustments that often