Company Overview It in the retail industry and it is one of the largest among retailers in its industry. The company operates in three segments and they are US, International and Sam Club. Fiscal year ended January 31, 2014, Walmart increased net sales by 1.6% to $473.1 billion and returned $12.8 billion to shareholders through dividends and share repurchases. The company is customer driven and has the ability to set a low price of each of its products product.
Form of Organization
The company was established in 1962 as proprietorship from of business. This form from of business has the following benefits:
1. The business is run by only one person, so all of the losses will fall in that one person.
2. It’s easier to make business …show more content…
As the shareholders are the investor of the business but it is not managed by them, the professional management makes better decision regarding the activities of the business, on a short and long term basis.
2. The liability of the owner is also limited to the extent of amount invested as paid up capital. If suppose, the owner of Wal-Mart has invested $2 million in the business and the company makes a loss of $2 billion, then the owner does not have to pay more than $2 million already invested by the him in the business. But following disadvantages discourage this form of organization.
1. It involves a lot of paper work and a large amount of money to get it started and registered.
2. It has to follow rules and regulation of various governing authorities.
Accounting …show more content…
Preparation of unadjusted trial balance.
d. Making of adjusted entries.
e. Preparation of Adjusted trial balance or 10 Column Worksheet.
f. Preparation of financial statements from above adjusted trial balance. And they are income statement, balance sheet, statement of owner’s equity and cash flow statement.
g. Making of closing entries.
h. Making of Post Closing Trial Balance.
Under the computerized accounting system all accounting cycle activities is processed by the software itself and reports are generated as designed, except for three activities of making general entries, adjusting entries and closing entries. These activities are properly fed in the computer. Under the system the worksheet is not required to prepare financial statements on monthly, quarterly or annual basis. At the end of each period all adjusting entries are recorded and thus the financial statements are made by the software itself. However, the company presents it all financial reporting at end of each quarter and at the end of each year, under PDF format, MS word and excel sheet. The company takes around 2 months in submitting its annual statements through 10-K form, which is evident from the fact that the annual report for year ending January 31, 2013 was submitted on March 26,
Form of Organization
The company was established in 1962 as proprietorship from of business. This form from of business has the following benefits:
1. The business is run by only one person, so all of the losses will fall in that one person.
2. It’s easier to make business …show more content…
As the shareholders are the investor of the business but it is not managed by them, the professional management makes better decision regarding the activities of the business, on a short and long term basis.
2. The liability of the owner is also limited to the extent of amount invested as paid up capital. If suppose, the owner of Wal-Mart has invested $2 million in the business and the company makes a loss of $2 billion, then the owner does not have to pay more than $2 million already invested by the him in the business. But following disadvantages discourage this form of organization.
1. It involves a lot of paper work and a large amount of money to get it started and registered.
2. It has to follow rules and regulation of various governing authorities.
Accounting …show more content…
Preparation of unadjusted trial balance.
d. Making of adjusted entries.
e. Preparation of Adjusted trial balance or 10 Column Worksheet.
f. Preparation of financial statements from above adjusted trial balance. And they are income statement, balance sheet, statement of owner’s equity and cash flow statement.
g. Making of closing entries.
h. Making of Post Closing Trial Balance.
Under the computerized accounting system all accounting cycle activities is processed by the software itself and reports are generated as designed, except for three activities of making general entries, adjusting entries and closing entries. These activities are properly fed in the computer. Under the system the worksheet is not required to prepare financial statements on monthly, quarterly or annual basis. At the end of each period all adjusting entries are recorded and thus the financial statements are made by the software itself. However, the company presents it all financial reporting at end of each quarter and at the end of each year, under PDF format, MS word and excel sheet. The company takes around 2 months in submitting its annual statements through 10-K form, which is evident from the fact that the annual report for year ending January 31, 2013 was submitted on March 26,