Introduction to Accounting, Ass. 1

Assignment One, Introduction to Accounts P1, L.Barker BCOT Business & Leisure Basingstoke RG21 6YG Mr. B Partton Bobs Builders Ltd Manor industrial park Basingstoke RG22 9IU Cc: Ms. T Keey Tinas bull Salon 54 The High Street Basingstoke RG22 5KJ 08.11.2007 Dear Mr. Partton R.e. Why use accounts? Accounts atomic number 18 statements that give you the financial information about your business i.e. what gold comes and goes out of your business (inflow & outflow). They deliver, mostly in tables laid out for the financial year, things like revenue, the costs and the advantage and/or loss of the business. They also arsehole show the debts, majuscule and the assets you have for/in your business. Most businesses use accounts; the main types of accounts employ are: Balance Sheets, they give information about the participations funds and how they are used in the business. It lists the assets, bang-up and the liabilities and the wealth of the business; basically, its shows the financial position of the company. Profit & Loss, they show a basic summary of the years trading activities for a year; stating revenue from sales, business costs and the overall cabbage and/or loss and how it is used.

bullion Flow Statement, They show the cash in inflow and outflow, the money that goes in to and out of the business from each one month. Balance Sheet Profit & Loss account Cash Flow Statement Businesses need to produce accounts as sometimes or most of the time they are legally obliged. Sole traders (business owed by 1 person) and larger companies need to do this to show taxation and shareholders. It also helps the business to asses their financial position, so they can determine if they are making a profit or loosing money. The accounts that businesses steel up are used not only by you, the owner, but by other people within the organisation, such as the managers, and investors to asses the progress and profits made so they can plan for any future expansion,... If you want to get a full essay, order it on our website: Orderessay

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