Concept and main types of business entities


Download 1.66 Mb.
bet1/80
Sana20.10.2022
Hajmi1.66 Mb.
#859880
  1   2   3   4   5   6   7   8   9   ...   80
Bog'liq
Answers
ozbekiston osimliklar qoplami, Ta\'lim to\'g\'risidagi qonun, 4-Mavzu Arxitektura va qurilish sohasida axborotga ishlov beris, grammaticheskaya-forma-i-grammaticheskoe-znachenie-slova, 2-mavzu, OCIQ DARS5555555, Suv resurslari 8, ELITA HOUSE, 2 5267139311022642186, 10-mavzu, 2 5420175098927650527, 2- Laboratoriya mashg'uloti varyantlar, 7-amaliy mashg'ulot, QQS 2, 1

  1. Concept and main types of business entities.

The concept of business entity believes that business has a distinct and separate entity from its owners. The business and the owners of the business are two separate entities.

  • When the owner brings some money to the business, it becomes a liability for the business. This money is called capital.

  • Separate records are to be maintained for the owner and for the business.

  • Accounting records are made for the business, not for the owner

  • Owner is supposed to be providing money to different separate entity as capital.

  • When the owner withdraws any money from the business for his personal expenses is called drawings. It reduces the liability of the business

Types of Business Entity Concept

Importance of Business Entity Concept


  • It Helps in to calculate the accurate profit of the business.

  • It Helps To make the accounting easy for the business.

  • it Helps in calculation of tax separately for the business and owner.

  • It Helps to Create Budget and Future Projections.

  • It Helps in Evaluating the Performance of Business.

  • It Helps in providing true and fair statement of the business.

The five main entity types


Almost every business falls into one of these categories:

Business entity type

Summary

Sole proprietorship

One person owns and controls the business. The owner pays all taxes and debts personally. here’s no corporate entity. They report profits and losses on Schedule C of their personal tax return.

Download 1.66 Mb.

Do'stlaringiz bilan baham:
  1   2   3   4   5   6   7   8   9   ...   80




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2023
ma'muriyatiga murojaat qiling