University of Phoenix Proprietorship and Partnership Comparison

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12:28 o vle.phoenix.edu = x View Discussion Clarissa Cruz 23 hours ago, at 1:27 PM NEW Hello, A company regardless of its merchandise needs financial reports and to asses' inventory that determines cost of goods sold at any given time. First-In, First-Out (FIFO) is used by companies to determine the cost of merchandise sold at a particular given time. A product may have a different coast depending the time of purchase, for example if merchandise is bought in January and in June both at a different price range, the coast of merchandise bough in January is what will be used to determine cost of goods sold (COGS) which with FIFO is assumed the merchandise bought in January is sold first. Vice versa, with Last-In, First-Out (LIFO) the price used to determine COGS would be the price of merchandise bought in June. Which implies that the most recent goods was what went out the door first. Due to lower income taxes, most organizations prefer to use LIFO method. However due to the LIFO conformity rule if taxes are low, so must the net income. (Kimmel, Weygandt, & Kieso, 2019, p. 407). Those businesses that have perishable items (Albertson's), or designer clothing (Michael Kors) are more common to use the FIFO method in order to avoid losing revenue when food items expire before purchase or clothing is out of season. LIFO method is used by businesses of petroleum (Chevron) or lumbar (Lowes's) due to possible increase of cost perhaps because if inflation or as we are learning now 기 7 + 2 12:28 o vle.phoenix.edu = x View Discussion A Reply. Jessica Talton 3 hours ago, at 9:13 AM NEW Hi Class, Last in, first out(Lifo) is a method used to account for how inventory has been sold. The costs of the most recent products purchased are the first to be expensed. LIFO is used only in the US and is governed by the generally accepted accounting principles (GAAP). Two good examples of LIFO would be supermarkets and pharmacies like Wal-Mart. Both would use the LIFO methods because almost every good they stock experiences inflation, but IFRS prohibits LIFO due to potential distortions it may have on a company's profitability and financial statements. First in First out (FIFO) is an accounting method in which assets purchased or acquired first are disposed of first. FIFO assumes that the remaining inventory consists of items purchased last. An example of businesses that use FIFO would be companies that sell perishable products or unites subject to obsolescence, such as food products or designer fashions. Dell, Hot Topic. I would imagine they would use the FIFO method because it's easy to apply, the assumed flow of costs corresponds with the normal physical flow of goods, and the balance sheet amount for the inventory is likely to approximate the current market. Reply 1 기 7 + 2 4:52 i 4 o vle.phoenix.edu = X Assignment Wk 2 - Summative Assessment: Business Or... Assignment Content Introduction: Starting a business requires planning, projecting what you want for your business today, and determining what your business plan is for the future. A successful business must plan for future growth, which requires making choices today about the type of business to be created. Understanding the different business types, as well as the advantages and disadvantages of each, will assist in making the decision. In addition, you must be familiar with the key roles involved in each type of business, as well as how they utilize financial information to make operational decisions. The first step is researching the 3 types of business organizations. Instructions: As head of your department, you are responsible for disseminating information to your staff. You have decided to create an infographic handout about the 3 types of business organizations to help them learn about the 3 types of business organizations, understand the key users' roles, and recognize how the different types of business organizations utilize financial information in the day-to-day business operations. Save and Close Submit 기 7 + 2 4:52 i 4 o vle.phoenix.edu = X Assignment À Use the information from Ch. 1, "Introduction to Financial Statements," of Accounting to create an infographic in which you: • Describe the following 3 types of business organizations: sole proprietorships, partnerships, and corporations. · Describe 1 advantage and disadvantage for each of the 3 types of business organizations. • Describe the key users (i.e., sole proprietor, partnership, board of directors, CEO, COO, CFO, managers, etc.) of financial information. Explain the types of day-to-day business decisions made by using financial statements. . . Format any references used according to APA guidelines. Submit your assignment. Resources Infographic page on the Microsoft® website Center for Writing Excellence Reference and Citation Generator • Grammar Assistance . . Copyright 2021 by University of Phoenix. All rights reserved. Save and Close Submit 기 7 + 2 U 4:58 A vle.phoenix.edu = x View Discussion 0 Wk 2 Discussion - Gathering Financial Infor... Discussion Topic ( (2 Review the last-in, first-out (LIFO) and first-in, first-out (FIFO) inventory methods discussed in Ch. 6, "Reporting and Analyzing Inventory" of Accounting. . . Respond to the following in a minimum of 175 words: Explain LIFO and FIFO inventory methods. Provide 1 example of a business that uses LIFO and 1 example of a business that uses FIFO. • Explain why the businesses you identified might use a particular inventory method. Due Monday Post 2 replies to classmates or your faculty member. Be constructive and professional. Copyright 2021 by University of Phoenix. 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Sole proprietorship
This is a form of business controlled, owned, and financed by a single individual (Skripak, 2016). The individual is known as a sole proprietor and is the chief decision-maker.

1. Advantages


This type of business is easy to form



Sole proprietorship facilitates easy decision making



The sole proprietor gets to enjoy all the profits

2. Disadvantages





The business is usually small in size
There is the limitation of capital since the sole proprietor is responsible for the financing
There are risks of making wrong decision making

Financial statements can help a sole proprietor make:


Decisions on planning and management of the business



Anticipate the future cash flow of the...


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