ACCA F3 revision notes section A Part 1
Define financial reporting
Financial reporting is the process of recording, analysing, summarising and presenting financial data in such a manner that it may be used by all the stakeholders
Different types of business entities
Sole trader
Partnership
Limited liability Company
Sole trader
Sole trader is the business owned and managed by one person
Advantages
Keep all profits
No interference
Disadvantages
Unlimited liability
Partnership
Partnership is a business owned and managed by 2-20 people
Advantages
More capital
Losses are shared
Disadvantages
Profits are shared
Interference
Limited liability company
Limited liability company is business owned by shareholders and managed by directors
Advantages
More capital
Limited liability
Disadvantages
Legal requirements
