Companies and financial accounting: understanding limited companies

Companies and financial accounting: understanding limited companies, introduces you to the legal characteristics of limited companies and how limited companies raise finance through ordinary shares and loan capital. It also introduces the interests of company stakeholders and looks at three different perspectives on companies and their role in society. Finally, it introduces the formats of company financial statements in comparison with those of sole traders.

After reading this ebook, you should be able to: understand the legal characteristics of limited companies and how these characteristics are different from those of sole traders and partnerships; understand company financing through share capital and loan capital; understand the interests and information needs of different company stakeholders; identify and explain three perspectives on the role of companies and company financial reporting in society; understand the differences in layout between financial statements for companies and those of sole traders; and explain how and why they are different from sole trader financial statements.

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