1. Describe the Purpose a Balance Sheet

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1. Describe the purpose a Balance Sheet A balance sheet can be described a financial statement that seeks to show the financial position of an organization. It shows the assets, liabilities and the equities of an organization at any given time. The assets of an organization can be described as the resources owned and/or controlled by the organization arising from past transaction and for which the organization can expect future benefits. The liabilities of an organization can be described as the obligations arising from past transaction that the company is expected to forgo future economic benefits to satisfy. Equities of an organization refer to the owners’ contribution to the organization. Equities are composed of owner’s contribution…show more content…
Various documents need to be effected to ensure safe passage of goods such as bill of lading, certificate of origin, inspection certificate and the shipper’s export declaration (Shipping Your Products, 2014). 6. Two reasons why money has time value The TVM is a finance concept that attempts to explain the reasons behind the idea that money currently available at hand is worth more than the same amount in the future due to its potential earning capacity. (a) Money can be assumed to have value as money received now is worth more than money one will receive in the future as TVM principles assumes that the money provided will earn interest and will be worth more than any amount of money. (b) Inflation -The time value of money is based upon a factor (interest rate) which is subject to variation based on current economic factors such as inflation, hence can vary over time. Inflation affects the tome value of money by influencing the consumer purchasing power (Brigham, 2014). 7. With the aid of a simple sketch, show how a multiple copy (5 part) paper order form is used and explain the purpose of each copy 1. Letter of inquiry – This is a document sent by the buyer to the seller enquiring about the goods needed, on matters such as prices and price incentives such as discounts, quantity that the company is able to supply, and terms of payment as per the policies
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