Financial Accounting for Partnership Business

This assignment delves into the significance of financial accounting within a partnership business structure. It emphasizes how financial data is crucial for revenue sharing amongst partners, especially in situations involving geographically diverse partners or joint ventures. The discussion also encompasses the three core categories of cash flow statements: operating, investing, and financing activities. These categories represent the primary functions of a business, asset management, and financial transactions respectively.

Introduction to financial accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................8

INTRODUCTION
Financial accounting is relating to financial transactions of the business. In which involve
all capital and financial transaction in the systematic manner. Keep all records and data through
accounts department of the company. Financial accounting in include cash low and fund flow of
the company. All these transactions are representing in balance sheet and income statement those
help to represent profits, losses, equity, debt amount etc. through this easy to determine actual
status and performance of the business.(Weil, Schipperand and Francis2013) In the other hand,
financial accounting is the summering, analysing and data reporting relating to financial data and
capital funds. In which involve stockholders, suppliers, employees, banks, owner of the business.
Financial accounting is the systematic records of financial transactions of the business. Those
help to representing and determine the business status and their actual or realistic image. In this
project report Pickering is the author those representing a research project report in which
including financial transaction and transactions of funds in the business. Pickering representing
the comparison of different accounting firms of various firms. Through this easy to evaluate their
financial strength and weakness in the financial term. Through this research report evaluate
different firms of financial transaction. In the research report including various issues and
problems relating to various ownership firms because through all kind of ownership firms invest
capital or fund to develop their business so its require to maintain financial records and
collection of data.
1.Discuss the different forms of ownership a professional service firm can take.
There are having many forms of ownership those are help to differentiate all business in
the systematic manner and their nature of their business. Forms of the ownership a professional
services working as the basis of financial investment in the business and how much equity and
debt of the ownership(Edwards 2013). There are some different forms of ownership those are
representing under the below:
Sole proprietorship: Sole proprietorship is the ownership firm in which only one owner of the
business and that only one manage all activities and works of the business. That prepare
accounting records their cash flow and fund flow of financial transactions. There kind of firms in
owner have unlimited liability because sole proprietor take funds through the market or public so

their have debt part is high that invest their own money and equity fund less comparison to debt.
These forms mainly including in small kind of firms and business.
Partnership: partnership is the another one form of the ownership in which two or more person
start a business or a firm together for conman goal or objective. They are mutually invest money,
skills, land, assets and all. This type of ownership firm loss and profit equally divide between all
partners of the firm. In which unlimited liability and highly risk to set business and earn profits.
Corporation: Corporation means a business firm that have a separate and different legal entity
through the government of the company. Like Stock market, stock market is the separate legal
firm there invest money in various firms to earn profits but their having chances of risk. On these
kind of firms regulated and control by broad of director and government of the country.
Limited liability company: Limited liability company is the other one firm of ownership. This
kind of firms include both partnership and corporation firms. They are working like both as an
partnership or an corporation firm. These kind of firm is not incorporate nut these are not
considering in corporation. Because they have not different and own entity of the firm. These
kind of firm has two or more partner those are mutually working in the firm to achieve targets
and objectives of the firms. The owner of the firm enjoy limited liability because this not taking
funds or money form the public they are invest their on equity in the firm so that's why LLC in
having limited liability to pay money to public and other party.
Cooperative: Cooperative firms in group of individual firms or business. They are working for
earn mutual profits and try to remove risk and losses from the business. Its help to develop
business and invest money in the different sectors as per the portfolio of the investment sectors.
These kind of firms are may be corporate or incorporate in the nature. Its all depends company
status and companies nature( Bazley 2013.). What works are doing in the organisation to earn
profits. For example: cooperative banks, cooperative companies and all. In the other hand, these
all are different types of ownership firms those are help to differentiae with each other and
clarify their nature and working quality.
2.Articulate the research questions that Pickering (2012) is trying to address.
Research questions are representing the collected data and informations relating to
business or firms. Through the research question of the partnership firm evaluate and determine

financial investment. There are mainly including various research questions those are under the
below:
Question 1. What are financial data and its impact on business performance.
According to this question what re financial data that affecting on business performance
in both positive and negative way. Financial data include financial transaction, profits and loss,
equity, liability of the business, investment in different sectors, shares of the company and all.
All these are impacting on the business performance may be there are positive and negative.
Financial data is the formal and systematic records of the financial data and their transactions in
the business. There are including their cash flow, fund flow, investments in various sectors to
earn money all these are affecting business development process in which sometimes investment
in various market beneficial and threat through this company will become in surplus and deficit.
Question 2. How financial data helps in strategic decision marking process.
Financial data of the firm help to take effective decisions regarding business. Because in
the financial record and statement in mention all investments, cash flow, equity, liability, debt
amount of the business. Through these terms easy to identify company status and their financial
status how much they are already investing in which sectors and how much they are able to
invest in the future. So in the other hand, financial data helps to take effective decision regrading
any situation relating to business. Through the financial data company can easy to evaluate their
strengths and weakness(Beatty, and Liaon 2014). Decision marking process is the essential to
take effective and right decisions regarding various situations those are help to develop their
business in the future and help to earn higher profits.
Question 3. How financial data help in attaining organisation objectives.
Financial data help to attaining organisation objectives and their goals. Financial data of
the business help to representing their business status and their quality of the business
performance. Financial data of the business including cash flow, fund flow, investment market,
capital, equity, liability, debts, number of shares and all. All these elements are help to
representing company status. Through the all kind of company maintain the records and
statement of their financial investment. Financial data and records are maintain through the
specialist accounting person of the company. There are require to maintain records have some
knowledge about financial terms so its help to understand their words and and flow of
investment. In the country available various sectors to invest money in the market there are

mainly two type of markets one is money market and second one is money market. Money
market are relating to stock market there are available various schemes to invest money to earn
high profits but there are having highly risk(Vyas ,2011). So all these are help to achieve targets
and goals of the business and help to determine business status in the financial term. Company
always invest in the market when that is able to invest and their have chance to earn profits.
3. Explain the research design used by Pickering (2012) to address the research question.
Research design for firms is require to establish effective and systematic manner.
Because research design affecting in the negative and effective manner. Research design based
of the research questions those are shows already in last question. Through these easy to
understand companies status and their financial investments capability. Research design should
be prepare in the systematic manner in which apply strategies and tech according to their
company. Research design should prepare by specialist person and evaluate the research design
through qualitative and quantitative methods. These both are provide information and data
relating to their company in the financial term. In the research question represent how to impact
financial data on business, how to achieve objectives and last one is how to help in decision
making process. Research design help to achieve targets and objectives of the business and
financial data help to determine financial status of the company and also in which sectors
invested by the company's head. In the other hand, research design play an vital role to achieve
goals and objectives of the business and it should be prepare in the systematic and in the
effective manner. Research design including objectives, vision or mission of the company,
research specialists, employees, strategies, tech, methods, cost, time schedule etc. All these are
representing the research project. Research design should effective and systematic in the nature
so all persons are easy to conduct research and collect informations and data relating to their
research( Wang, 2014). Financial data is the important to representing company status and ability
to invest money and fund in the market to achieve targets and objectives of the business. To
assessing the research in determine and evaluate performance of research and what are the
changes should change according to review and feedback of research report. There are easy to
identify their weakness and strength of the business and also how to achieve targets and goals of
the business in the effective and systematic manner. In the other hand, research design is
important to define business in the systematic way there are set all activities and works in the

systematic manner so all persons are complete their task and works in the effete way. All kind of
research find out something new and innovative things to develop business and achieve deicide
goals of the business(Agoglia, Doupnik and Tsakumis, 2011). So that's why company conduct
research to innovate their business and their services to improve profits and revenue of the
business so they can invest the funds in different sectors and earn profits. When company earn
higher profits so that become in surplus. In the other hand, research design play an vital role to
improve performance and financial status. Research design through determine company and
financials investment of the fund in various sectors. Through the research process easy to
evaluate their weakness and strength.
4.Summarising the finding of Pickering (2017)
Financial accounting is the systematic process in which representing the all financial elements
like equity fund, debt amount, cash flow, fund flow, transactions of finance in different sectors.
Financial data through identify business status and how much they are able to invest money in
the market. Financial data include transaction of finance of business those are maintain the
record and statements in the systematic manner. These help to determine business status and
their actual position in the market. In the other hand, financials data through conduct
informations and status relating to the company in which involve their investments relating to
company. Company always take funds and capital through the public so in this case they are
liable to pay that particular amount to them with interest(.ByardLi and Yu, 2011.). But equity of
he company means how much own mount of capital invest by company to develop their business
in the effective manner to achieve targets and goals. Research report of the company help to
define objectives and vision of the company through the research project find out some different
different things and innovative things to develop business. In the research project involving
many stages like implementations, evaluation, assessments, measuring and all. In these steps
help to give proper informations regarding project and their company. All kind of company
conduct research to develop their business in the systematic way to achieve targets and goals of
the business. Research is play vital role to increase profits and development of the business. In
the market available various ownership firms those are representing their nature and working
quality. Firms are regulating and controlled by the government of the country there are made
some effective rules and regulations those have to follow by all companies(Bushman 2014). In

the other hand all different companies has number of owners are different like partnership firm
has including two or more partners those are manage and control buiness and they are start the
business to earn profits mutually. In the partnership firm all partners are mutually invest the fund
and money to develop their business and achieve the targets. Cooperative companies, LLC, sole
proprietorship firms and all. All these are working in different different objectives and targets.
Financial data of the company based on their equity and debt ratio in which equity of the
company representing the own funds those are invested by the company to develop their business
their own risk but debt amount means take funds through the public so in this case company will
liable to pay back amount to public with interest.
CONCLUSION
Financial data involves set of information which is connect to the financial condition of a
organization and set of information are utilize by internal management to analysing the company
performance and explain various level and plan must be inter-related to each other. Financial
data include financial statements that show the formal information of the activity of financial of
an entity. Financial statement help to identify the financial effect of organization transaction on
the entity and financial statement divide in four types statement of financial position, Income
statement, cash flow statement and statement of changes in equity. Statement of changes in
equity include total profit and loss, share capital issued, dividend payments, gains or losses and
the effect of differences in accounting policy. Cash flow statement is part of operating activities,
investing activities and financing activities. Operating activities include primary activity of
business. Investing activities involves purchase and sale of assets other inventories. Financial
activities involves represent the financial activities. There is a big impact of the financial data in
a partnership business as it is used to share revenue generated by the business. According to the
rules of partnership arrangement by them. Making financial data in a partnership firm is really
very important if both the partners are of different regions and came into existence trough joint
venture. But if the partners are friends then it is not mandatory
REFERENCES
Books and journals

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accounting standards: The influence of standard precision and audit committee strength
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Melbourne.
Beatty, A. and Liao, S., 2014. Financial accounting in the banking industry: A review of the
empirical literature. Journal of Accounting and Economics, 58(2), pp.339-383.
Bushman, R.M., 2014. Thoughts on financial accounting and the banking industry. Journal of
Accounting and Economics, 58(2), pp.384-395.
Byard, D., Li, Y. and Yu, Y., 2011. The effect of mandatory IFRS adoption on financial
analysts’ information environment. Journal of accounting research, 49(1), pp.69-96.
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