EDEXCEL BTEC L3 Extended Diploma in Business and Accounting
Unit number and title
Unit 5: Business Accounting
17 November 2014
The purpose of this assignment is to:
Enable learners to understand the purpose of accounting, the associated processes and its role in managing of a business.
Understanding how a business operates and what makes it successful, requires knowledge of accounting processes. Accounting involves recording business transactions which are used to generate financial information and this information can be used for financial control and planning. In this unit we develop and understanding of the accounting processes and practically applies these processes to develop relevant information. Using the information prepared the managers of the business should be able to recognise potential difficulties and take remedial actions.
Task 1 Due Date: 17.11.14
Criteria: P1 and P2
Engaging Enterprise is a local organisation that promotes enterprise in young people and offers support and help to new entrepreneurs. It has recently launched a new scheme called Acorn, a 12-week programme aimed at encouraging and helping 16-25 year olds to set up in business.
You have been invited along as a guest speaker to give a presentation on the purpose of accounting. Your presentation should address the following questions.
1. Describe the purpose of accounts. (P1)
2. Explain the difference between capital and revenue items of expenditure and income. (P2)
Why is it important to keep accurate financial records?
How will these records help the entrepreneur?
What is meant by revenue and expenditure?
What is the difference between revenue expenditure and capital...