...Small Business Idea Paper The government recently released funds to individuals who want to create a small business. This concept of releasing funds to individuals will create more jobs and stimulate the economy. The first step for a small business owner is to determine which of the four forms of business the organization will best fit with the new owner’s ideas. In addition, the business owner will need to review all tax legalities and implications associated with the different forms of business for her organization. This paper will discuss the four forms of business and the different types of financial statements associated with the forms of business in relation to consequences of taxes, liabilities, and accounting implications. Sole Proprietorship Sole proprietorship is the most common and easiest form of business to create. Some of the benefits of a sole proprietorship are that the owner can make decisions of hiring and firing employees, decisions of which vendors to use, what materials and equipment to purchase and what direction they want the business to take. A disadvantage is that the owner is limited to funds as a sole proprietor can only access the funds that are available. In addition, the sole proprietor is responsible for all liabilities associated with the business. The financial statement associated with at sole proprietorship is the statement of cash flow. The statements of cash flows provide financial information regarding cash receipts and payments...
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...Small Business Idea Paper Introduction: Recently, the government released funds for persons willing for establishing a small business. This releasing funds’ concept will form many jobs, and the economy will be stimulated by it. For the owner of a small business, the first step is to determining which business form is best suited to his or her ideas. Furthermore, it is essential for the owner of business to evaluate implications of legalities and tax related to his or her business forms. The purpose of this paper is to define the advantages and disadvantages of the four different forms of business organization, including sole proprietorship, partnership, C corporation, and S corporation. The paper will define the different types of financial statements associated with each form of business organization. The paper will also define the consequences of Tax implications, Legal implications, and Accounting implications associated with each form of business organization. Furthermore, a business will be selected in the paper of which an explanation of the unique product or service will be provided. Sole Proprietorship: It is the easiest and general sort of business to establish. A number of assistances of this business include the decisions of firing and hiring workers, assessments of selecting the vendors, what equipment, and materials to buy and what directions he or she is willing the business to take. A drawback of this...
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...the company’s profits forced Guillermo to consider several potential alternatives: 1) upgrading current equipment and shifting from manufacturing to distribution to support a Norwegian based company, 2) limiting GFS business to custom work, and 3) changing the GFS furniture coating process (University of Phoenix, 2008). This paper will show how Guillermo can make the best decisions for his family and company by using budget and performance reports, accounting information, and ethics considerations. Budget and Performance Reports Businesses use budget and performance reports when making decisions. Budget reports provide a quantitative plan for a particular course of action. Budget reports help in the coordination and implementation phases of a business plan. Performance reports provide feedback by showing a comparison between plans and results. They also show variances for consideration in the decision-making process (Horngren, Sundem, Stratton, Burgstahler, and Schatzberg, 2008, p. 13). In GFS's case it is important to use the budget and performance reports for each of the three major alternatives. The information will provide the current financial state of the company. An analysis of each alternative will determine effect on assets, liabilities, and equity of the company. The analysis will point out...
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...Small Business Start Up Christopher Blasdel Accounting/ACC561 November 14, 2011 Julio Jimenez Small Business Start Up Starting a new business can be a daunting task but the end results can be incredibly rewarding. New business owners are the foundation for our capitalistic economy and without them, such organizations as Wal-Mart and Macy’s would never exist. In this paper, we will examine the four different forms of business organization, weigh their strengths and opportunities, and identify the best type for a future individual business venture. We will start by examining the four types of business organizations. “According to the U.S. Census Bureau, small businesses are responsible for over half of the private sector workforce, 50 percent the gross domestic product, 90 percent of exports and innovations, and 90 percent of net new jobs” (Anderson, 2004). The most basic type of business organization is the sole proprietorship. In this style, the business is typically owned by one person. The advantages of a sole proprietorship are autonomy, independence and full decision-making abilities. Since there is one owner, there are no shareholders or boards of directors to work with in steering the direction of the organization. The downside of a sole proprietorship is that all tax implications fall on the owner. This includes all profits made, losses recognized, and all liabilities and debts. For one person, this may be a very expensive venture and if the organization has...
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...Client Understanding Pa Accounting Theory and Research/ ACC561 October 1st, 2015 Prof . Paul Vilaro Nelms Client Understanding Paper As part of the analysis carried out within the accounting entries will be explaining and analyzing the following issues for the customer. Adjusting lower cost of inventory on market valuation, interest Capitalizing on building construction, Recording gain or loss on asset disposal and finally the theme adjusting for goodwill impairment Adjusting lower cost in market inventory on valuation Inventories are necessary for companies because it is a fundamental part of the business operation. They seek to retain control of the articles of tangible property of a company. These items range from the material for the production process to be in-assembly and used as part of a sale, must be counted and recorded in the books. The valuation of inventories is of great importance for two reasons. First, generally they constitute an important part of current assets which means that this has a significant impact on working capital. Second, inventory valuation has a major impact as the amount is reported net profit for companies. There are various methods of conducting the inventory and turn the registration ledgers. Generally Accepted Accounting Principles (GAAP) teaches that when inventories decreased in value to future sales price should move in the same direction at the same time There are various methods for carrying the inventory. One is the perpetual...
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...Sarbanes-Oxley Gabriel Mould ACC561 October 13, 2015 Dr. Janet Forney Sarbanes-Oxley Aspects of the Regulatory Environment In 2001, one of the largest corporate scandals unraveled as Enron/Andersen was accused of corporate fraud. Not long after were companies such as ImClone and Global Crossing were deemed under the same fraudulent activities and congress did very little in correcting the situations. (Larry Bumgardner, 2003) Several committees did hold hearings and a number of bills were introduced to address corporate misconduct. However, the differences between the Senate under Democratic control at the time, and the House of Representatives and White House, under Republican control, on how to address the problems were so great that no legislation appeared imminent. (Larry Bumgardner, 2003) There was a second wave of scandals that involved WorldCom and Adelphia in the summer of 2002. (Larry Bumgardner, 2003) WorldCom had $107 billion in assets but after filing in the Southern District of New York was crushed by their debt of $41 billion. WorldCom’s bankruptcy is the largest in United States history making Enron seem irrelevant. (Beltran, 2002) Three founding members and two other company executives of Adelphia were arrested on charges of looting the nation’s sixth-largest cable-television company on a massive scale. Congress along with the White House began to notice a steady decrease in the stock market which led them to call for action against these scandals...
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...The Guillermo Furniture Store Decisions Team A Accounting/ACC 561 November 10, 2010 Professor Rios, Angel J. Guillermo Furniture Store Decisions Navallez Guillermo’s quest to remain competitive in the furniture industry comes down to analyzing cost accounting measures. By carefully analyzing balance sheets and income statements, accounting officials can provide management a synopsis of where company strengths and weaknesses are, and then corrective measures can be adjusted to improve company performance. A break even analysis, return on investment, and residual income will be calculated as well as many other issues will be discussed to allow Guillermo to make the best informed decision for his company. In this report, Team A examines the components that make up a cost control system and explains how management uses this information in their decision-making process. Guillermo Furniture Store can use the following three systems to help achieve the store’s organizational goal. The Quality Control System is in the manufacturing business. Quality is the number one priority concerning customer satisfaction. Thereby the quality control system is required to satisfy the customer’s needs and trends. Quality control is a system of routine technical activities, to measure and control the quality of the inventory as it is being developed (Quality Assurance and Quality Control, 2010). Once ensured that customers are satisfied with their high quality, Guillermo Furniture...
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