Assignment Task
Objectives
1. To enable students to do Full Accounting Cycle.
2. To enable students to analyse Financial Statements, interpret the results, and evaluate the financial performance of the business.
3. To enable students to manage their own business organisation.
Instructions
1. Form a group of 5 members.
2. Create a Sole Proprietorship business entity with any nature of business.
3. Describe the details of the business organisation.
- The name, the entity, and the nature of the business.
- Describe the main business operations.
- Detail information of business products/services, sources of revenue and cost.
- Organization chart and other relevant information about the business.
4. Create 12 economic business transactions for the enterprise and 3 adjusting entries.
5. Your transactions should consist of Assets, Liabilities, Equities, Expenses, Revenues.
6. You may use any relevant assumptions.
7. Can choose any accounting month/year.
8. Prepare Full Accounting Cycle for the enterprise (do ALL steps in the accounting cycle).
9. Analyse the Financial Statements that you have prepared using:
- Horizontal Analysis
- Vertical Analysis
- Ratio Analysis
10. Based on the above analysis, interpret the results and evaluate the financial performance of your business. Also evaluate the overall financial performance.