Ministerio de educación

Changuinola American Academy

Fecha de entrega:3/4/2023

Estudiante:Jordan Isaac Biscaino Morris

Profesor: Janelle Vernom

Materia: Accounting

Trabajo:Class work
 ---Class Workshop---
1. Profit, Ruskin's take and entrepreneurs
A. What is a measure of business success?
The number of customers and repeat customers. The number of sales. The income
generated. the benefits produced.
B. What is an entrepreneur? Name two characteristics of an entrepreneur.
An entrepreneur is someone who develops a company around an innovation. In other
words, it manages the business and assumes the risk that comes with being successful
or not.

2. Types of business operations

A. Name and describe the three types of business organization.
Cooperative society: non-profit and looking for the welfare of its members. Sole
proprietorship: owned by a single person. Limited liability company: the partners are
the ones who respond with their initially contributed capital. Limited company:
liability is limited to the assets contributed.
B. What is the main difference between a trading business and a manufacturing
business?
Sales are related to the commercialization of a product, while production is directly
linked to manufacturing processes.

3. Forms of commercial operation

A. Describe each of the three forms of business organization.
sole proprietorship, partnership, and corporation

 In a sole proprietorship, you’re the sole owner of the business. This type of
business is straight-forward and easy to launch and there may be fewer
administrative requirements compared to a partnership or corporation.
 A partnership is a non-incorporated business created between two or more
people. It’s fairly easy and inexpensive to form this type of business and start-
up costs are usually split equally between partners. A legal agreement should
be drawn up to outline how profits will be shared.
 A corporation is a legal entity separate from its shareholders. Corporations
offer flexible structure and an ability to divide ownership with shares, but that
makes them more complex, so it’s always a good idea to speak with a lawyer
before incorporating. This type of business may also more expensive to set up
than others.
B. What is the purpose of a partnership agreement?
It gives you and your business partners a clear understanding of the rules and
arrangements applying to your business relationship.

4. Advantages and disadvantages of forms of business organization.

A. List two advantages and two disadvantages of each form of business.

B. What disadvantage do a sole proprietorship and partnership share?

A major problem with partnerships, as with sole proprietorships, is unlimited liability:
in this case, each partner is personally liable not only for his or her own actions but
also for the actions of all the partners.

5. Purpose of Accounting
A. Describe the purpose of accounting.
All companies use accounting to report, track, execute and predict financial
transactions. The main functions of accounting are to store and analyze financial
information and oversee monetary transactions. Accounting is used to prepare
financial statements for a company's employees, leaders, and investors.

B. What does the accounting system do?

The intent of an accounting system is to record business transactions, summarize
those transactions into an aggregated form, and create reports that can be used by
decision makers to monitor, analyze, and improve operations.

6. Financial and Management Accounting

A. What is the main difference between financial accounting and management
accounting?
financial accounting reports are prepared for outside parties while managerial reports
are for inside parties. Managerial accounting is focused on the future while financial
summarizes past transactions.
B. Explain how the manager uses the information in accounting reports.
Accounting information is used by managers to plan, evaluate the company
performance and manage risks.

7. Basic accounting assumptions

A. What does the term assumption mean?
something that you accept as true without question or proof: People tend to make
assumptions about you when you have a disability.
 B. What are the three important accounting assumptions and what does each
mean?
The three main assumptions we will deal with are – going concern, consistency, and
accrual basis.
Going concern
This assumption is based on the principle that while making the financial statements
of an entity we will assume that the company has no plans of winding up in the near
future.
Consistency
This assumption states that unless and until things are mentioned in the accounting
policies, procedures, standards, etc. Things that have been followed in accounting
remains the same.
Accrual basis
Under this assumption, accounting transactions are recorded in the books of accounts
when they occur.
Sentences:
Sole proprietorship: In most cases, a home-based candle making business is simply a
sole proprietorship with no employees.
Partnership: The company is developing a new car in partnership with leading auto
manufacturers in Japan.
Corporation: Three companies were amalgamated into a corporation.
Business: Their publishing company is the best in the business.
Entrepreneur: My dad was a successful textiles entrepreneur and my mother helped
with my business.
Financial report: These fees brought in $2.37 million, according to the city's annual
financial report.
Merchandising: She is the company's director of merchandising.