POA

• Types of Businesses:

  • Trading business buys goods from suppliers and sells goods to customers
  • Service business provides services to customers
• Forms of Business Ownerships:

  • Sole proprietorship
  • Limited liability partnership [O Level]
  • Private limited company [O Level]
• Stakeholders and Decision Needs:

  • Owners and shareholders contribute capital to the business and expect profit distribution in return
  • Managers work for the business and devise strategic plans to run the business efficiently
  • Employees work for the business and perform executive duties
  • Lenders make money available to the business and expect it to be fully repaid with interest
  • Suppliers supply goods/services to the business
  • Customers buy goods/services from the business
  • Government enforces tax regulations
  • Competitors sell similar goods/services as the business
• Accounting Theories:

  • Accounting entity theory: activities of business are separate from actions of owner
  • Historical cost theory: business transactions should be recorded at original cost
  • Monetary theory: only business transactions measured in monetary terms are recorded
  • Objectivity theory: accounting information must be supported by reliable and verifiable evidence
• Types of Business Transactions:

  • Cash transactions: payment is made immediately during cash sale/purchase
  • Credit transactions: payment is delayed during credit sale/purchase
• Accounting Cycle:

  • Identify and record
  • Adjust
  • Report
  • Close
• Source Documents:

  • Receipt: acknowledges payment received from customers immediately after business has sold goods or provided services
  • Invoice: informs credit customers of amount owed after business sold goods/provided services on credit
  • Credit note: reduces amount owed by credit customers who were previously overcharged/after goods were returned
  • Debit note: increases amount owed by credit customers who were previously undercharged
  • Bank statement: checks and tallies against business records of cash at bank account
• Elements of Financial Statements:

  • Assets: resources a business owns or controls that are expected to provide future benefits
  • Liabilities: obligations owed by a business to others that are expected to be settled in the future
• Attachment is a strong reciprocal emotional bond between an infant and a primary caregiver

  
• Schaffer and Emerson's 1964 study on attachment:

  • Aim: identify stages of attachment / find a pattern in the development of an attachment between infants and parents
  • Participants: 60 babies from Glasgow
  • Procedure: analysed interactions between infants and carers
  • Findings: babies of parents/carers with 'sensitive responsiveness' were more likely to have formed an attachment
• Freud's superego is the moral component of the psyche, representing internalized societal values and standards