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

Unit 36 - Coursework Example This made 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 profits, keep records of customers and the amount they owe to the business, know suppliers and their owing to the business, and eventually to have information for legal and tax purposes in relation to the location of the business (Juan 3). In this paper the chosen organization is Apple Inc. Like every other MNCs, Apple also publish their Cash flow statement, Profit and Loss statement and balance sheet every year. It is not only helpful for the investor to analyse the performance of the company but at the same time experts also make the ir prediction 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 used 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 losses and profits. Revenue items in the books of accounts on the other hand 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 As profits withdrawn from the income reduce the available capital, the losses