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1. Design a brief introductory guide to accounting for new businesses. Within this booklet you need to include:

a. The
purpose of accounting (recording of financial information, monitoring and controlling the business, measuring the financial performance)
b. Explain the difference between:
capital income, revenue income, capital expenditure and revenue expenditure, using examples to illustrate the points.

P3

3. Prepare a year cash flow using this data and template. Merit

P3

4. Using the attached sheet, explain the purpose and meaning of profit and loss accounts and balance sheet.

5. Using the
case study, perform a ratio analysis on the profitability, liquidity and efficiency of the business. Merit

P1-P5


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Ratio formulae