Your line manager has asked you what you think the accounting department's role is in relation to the organisation. In your group, discuss the main purpose of accounting activities for an organisation, considering whether this would vary for different types of organisation. You should note down what you think is the most accurate description of the purpose of accounting.
This task addresses P1
In your group you will need to carry out the following.
a) Discuss what is meant by the terms capital income, capital expenditure, revenue income and revenue expenditure.
b) Carry out some research using the internet and any available publications to see if there are any other descriptions of these terms that you have not thought of. You should compare at least two different sources of information.
c) Meet with your group again to discuss the research you carried out in b). Individually note down accurate descriptions for each term, based on the information you have found. Ensure that you explain the differences between the terms.
d) Select three different kinds of organisation and decide, as a group, the different categories of capital income, capital expenditure, revenue income and revenue expenditure for each organisation selected.
e) Individually, produce a report with detailed descriptions and examples of the different categories of income and expenditure.
This task addresses P2