Research has shown that 80% of new businesses fail within the first two years and it could be argued that the current accounting rule does not reflects the actual ‘profit’ figure related to the business.
ACCOUNTING ENTERPRISE THEORIES AND ISSUES COURSEWORK
SPECIFIC GENERAL GUIDANCE
- Discuss the statistic relating to business failures and the possible reasons behind the statistics.
- Discuss the accounting rules relating to the reporting of business profitability in a country or countries of your choice.
- Discuss how accounts could be prepared that more accurately reflect profitability.
- Critically evaluate the coursework assignment statement by considering the alternative ways of reporting business profits that could also take into account changing prices and inflation.
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