Imagine that your friend wants to open a new hair dressing salon. She has 10 lac Taka that she wants to invest in her new venture. However, she has no knowledge of Accounting. She came to you for help. Explain to your friend how the entire Accounting Cycle will work for a hair dressing salon. You MUST include the following points in your discussion : - How she can analyze whether an economic event is business related or not - How the Accounting Equation works and how one can write the journal entries for the items within the accounting equation. - What sorts of revenue and expenses she might have for her business (give examples with estimated values) - Why the Financial Statements are prepared at the end of each year for a company. What are purposes of the Financial Statements. - What are the current and non - current assets she might have to purchase for her business (Give examples with values and state why they might be needed for her business).

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In order to start a business capital investment is required The business and the owner will be considered as separate entities and therefore the capital invested is an internal liability ie the amount ... View the full answer