4 other forms of businesses a cooperative is a

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4-Other forms of businessesAcooperativeis a business owned and controlled by those who use its services. Individuals andfirms who belong to the cooperative join together to market products, purchase supplies, andprovide services for itsmembers. Also known as SACCOS in Kenya, they are member basedand provide credit facilities to its members.asienwa_simon6 |P a g e
Anot-for-profit organizationsis an organization formed to serve some public purpose ratherthan for financial gain. It enjoys favorable tax treatment.4.0 ACCOUNTING METHODS AND METHODOLOGIESAssets:an asset can be defined as resources present in a business organization that have probablefuture economic benefit. They include cash, land and buildings stock e.t.c.Assets can either be defined as current, non-current or intangible.Current Assets:these are assets consumed in one year or are expected to benefit the firm withina period of not more than one financial year e.g. stock, cash at hand, cash at bank, debtors,prepayments e.t.cNon-current Assets:these are assets whose economic benefits to the organization are achievedfor a period exceeding one financial year. Examples would be land and buildings, motorvehicles, plant and machinery, computers e.t.cIntangible Assets:these are assets of economic value to the business enterprise but cannot bephysically felt or seen e.g. goodwill, patents, copyrights e.t.cLiabilitiesThese are obligations that a business is expected to meet within a certain duration. They can alsobe defined as total funds owed for assets supplied to a business or expense incurred but not paidyet.Liabilities can either be short term or long term. Short term liabilities are those that are expectedto be met within duration of one financial year. Payment for accrued expense, creditors,dividends to shareholders e.t.c. on the other hand long term liabilities are those payable within aperiod exceeding one financial year e.g. long term loan, re-payment of debentures e.t.cCapital:this is defined as the total of all resources invested and left in business by its owner.Revenue/Income: this can be defined as the monetary value of all goods and services sold tocustomers by a business enterpriseExpenses:This can be defined as the monetary equivalent of all resources/assets that have beenconsumed during a given period to generate the revenues for the business organization in a givenaccounting period.Nota Bene:Book keepingdefined as the process of recording business transactions (data) in a systematicmanner. It can also be defined as that part of accounting that is concerned with recording data.Accounting CycleThe accounting process can be perceived as a cycle which starts with theoccurrence of a transaction, recording of the transaction and finally the preparation of thefinancial statements.4.1 BOOKS OF ORIGINAL ENTRYBooks of original entry can be defined as the books in which we first record a transaction. Thesebooks essentially record the following details of a transaction:

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Term
Fall
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Accounting, Balance Sheet, Double entry bookkeeping system, Purchases Journal, Cash Bank, M Kibaki Sh

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