HC1010 Accounting for Business

Task:

Students are required to apply knowledge learned in class and perform independent research of the key topics.

Learning Outcomes:

• Obtain and contextualise business information for business accounting to explain and apply different concepts of costs to business decisions;

• Apply, analyse, synthesise and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses;

• Prepare, analyse, and interpret transaction data and financial statements for datadriven decision-making;

• Evaluate the complex concepts of accounting such as roles and purposes of accounting and preparation of worksheets; and

• Communicate accounting information in writing professionally

Assignment details:

Your friend Rob is from WA and he wants to start a business of his own. He is thinking of buying a Bakery in Melbourne. The shop has been there for several years but has not been a great success. Rob does not have sufficient savings and he may have to borrow a large amount of money to finance the purchase.

As you are an accounting student, you have been asked to advise the following:

a. What are the options of the forms of organisation that Rob can adopt for the business? Analyse the advantages and disadvantages of each option for Rob.

b. Will the choice of organisation affect the availability of finance for his business? Explain.

c. How can he raise the required finance? What security do you think he will need to provide?

d. How and what accounting information will assist Rob in making decisions in purchasing the business? What non-financial information should he be requesting?

e. What skills and/or accounting knowledge will he need to manage the business?