CHAPTER 1
How a company is financially structured and how it trades
‘Watch your finances like a hawk.’
H. Jackson Brown Jr
Aim
The aim of this chapter is to understand how a company is financially structured and how a company trades.
Outcomes
By the end of this chapter you will understand:
- the difference between a sole trader, a partnership and a limited liability company
- how the accounting equation describes the balance sheet
- how the balance sheet and profit & loss account interact
- how a company accounts for transactions in the balance ...
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