As I’ve mentioned from above, the financial statement (position) of a limited company has three component, the assets, the libialities and “Equity”. This is the main different between partnership and sole trader, because limited company is a separated legal equity, that’s why an equity part of financial position statement must be conducted in order to shows some special value such as the shares (value/ amount/ source of finance), the money research and retained earnings. So, in this part of the report, I’ve presented three types of financial statement which frequenly belong to sole trader, partnership and company. Even though, the main purpose of these statement is about displaying financial information which helps management understand the business cirucmstances, and contribute to deciosn making process, but techinicall there are some difference between them. (Please see more at Appendix 2)
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