Unit 36 Coursework Example | Topics and Well Written Essays - 2500 words

Unit 36 - Coursework ExampleThis make the recording of business transactions and activities an important factor. In recent years, accounting has undergone several transformations among its purposes include having a permanent record of all of the business transactions, keeping records of income and expenses, and keeping records of assets and liabilities for ascertaining financial position of the business. Another purpose is to keep control of the expenses while maximizing scratch, keep records of customers and the amount they owe to the business, know suppliers and their owing to the business, and in the end to have information for legal and tax purposes in relation to the location of the business (Juan 3). In this radical the chosen organization is Apple Inc. Like every other MNCs, Apple also publish their money flow statement, Profit and Loss statement and balance sheet every year. It is not only utile for the investor to analyse the performance of the company but at the same time experts also make their foresight based on these report regarding how the organization is going to perform in coming years.According to collins Richards, all income received and all expenditure spend in a business should always be accounted for either in terms of capital or revenue (42). The difference between capital and revenue items of expenditure and income is the total amount of wealth found in a business that has subsequently been utilise to produce income. In the books of accounts, capital does not change it is maintained intact - separated from other forms of finance with a clear clarification showing losings and profits. Revenue items in the books of accounts on the other get hold of are either income or the expenditure showing the daily business transactions. Income is represented by profits while expenditure is represented by losses. As profits withdrawn from the income reduce the available capital, the losses