KCQ’S on Chapter One: A way of viewing business

I thought parts of the readings like Luca Pacioli, Journals and Ledgers, Accounting Equation, and the last three pages was where I got good insight and knowledge of accounting. 

• Firms creating and exchanging value with other firms through various markets.
• Five elements of accounting Asset, Liabilities, Equity, Revenue and Expense
• 'Idea's are Powerful' 

Questions:

• Would it be bad to go into a family partnership business?
• Would it be worth now starting a new business or buying a business/shop?
• Why business owner’s waste money on accountants if you know and have accounting experiences why not they do it themselves? 

• For your firm, identify three Assets, three Liabilities and three items of Equity. Describe what each item means to you (you may find some footnotes in your firm’s financial statements may help you to make more sense of these items).

Assets:

1.      Cash and Cash Equivalents- means cash on hand.

2.      Trade and other receivables- mean fair value for costs of items.

3.      Inventories- mean goods in stock.

Liabilities

1.      Trade and other payables- money owed to supplier or helper.

2.      Borrowings- borrowing money for a certain time and paying it back.

3.      Current tax liabilities- an amount you have to pay to the authorities.

Equity

1.      Issued capital- value shares that are issued to shareholders.

2.      Reserves- a part of a shareholders’ equity.

3.      Retained losses- a loss by a business in sales.