Business Studies A Level Notes Pdf
Extracts from this document. Introduction Accounting Notes Accounting: the process of gathering and preparing financial information about a business in a form that provides accurate and useful records and enables decisions to be made. 5 main activities involved in accounting: 1.
Gathering financial information about the activities of a business. Preparing and collecting permanent records. Records provide evidence of purchase and proof of payment, etc. Rearranging/Summarizing/ Classifying financial information into a more useable form.
Business Studies A Level Past Papers
Preparing information reports and summaries for the following purposes: a) Help management reach decisions. B) To serve the needs of outside groups (i.e. Bankers, investors). C) To measure profitability. Establishing controls to promote accuracy and honesty among the employees. As a business grows, owners can no longer look after everything. As soon as employees are hired, accounting controls are essential.
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Why study Accounting? Accounting on the job. Accounting in daily life. Owning your own business. Accounting as a profession: Professional Designations in Accounting: a) CA - Chartered Accountant. B) CGA - Certified General Accountant.
C) CMA - Certifies Management Accountant. Asset: Anything owned that has a dollar value. Money, Property, Inventory. Liabilities: A debt of an individual, business or other organizations. Rent, Mortgage, Loan, Tax Owners Equity: The total assets minus the total liabilities is equal the capital or equity. Profit, Loss, Capital.