HC1010 Accounting For Business Assignment
Task:
Purpose of the assessmment
Learning Outcomes:
• Obtain and contextualise business information for business accounting to explain and apply different concepts of costs to business decisions.
• Apply, analyse, synthesise and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses.
• Prepare, analyse, and interpret transaction data and financial statements for data driven decision-making.
• Evaluate the complex concepts of accounting such as roles and purposes of accounting and preparation of worksheets.
• Communicate accounting information in writing professionally.
As you are an accounting student, you have been asked to advise George on the following issues:
a. Explain to George the form of organisation he can adopt for the business? Briefly discuss the advantages and disadvantages of the form of organisation being suggested.
b. George has a very limited understanding of the term Assets. Explain to him how goodwill can be listed as Asset and how this relates to businesses past investing decisions.
c. Based on the information provided, George believes the business is worth $400 000. Advise him on the accuracy of his assessment.
d. Explain to George how the accounts receivable and inventory should be valued on the balance sheet. If the business was to apply the correct measurement basis, determine the effect on: (1) profit and (2) assets.
