Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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ANSWERING THE QUESTIONS

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1.  Differentiate between entrepreneurial ventures and small businesses.
Entrepreneurial Ventures—organizations that are pursuing opportunities, characterized by innovative practices, and have growth and profitability as their main goals. Small Businesses—organization that is independently owned, operated, and financed; has fewer than 100 employees; doesn’t necessarily engage in any new or innovative practices, and has relatively little impact on its industry, usually remaining small by choice or by default.   

2.  Why is entrepreneurship important in Pakistan?

The important of entrepreneurship in Pakistan can be shown in three areas: innovation, number of new start-up business and SMEs, and job creation.   

3.  Is the pursuit of entrepreneurship important only in Pakistan? Explain.

The Global Entrepreneurship Monitor (GEM) studied the pace of entrepreneurial activity on economic growth in various countries. Among the major industrialized G-7 countries inparticular, there was a very strong relationship between the level of entrepreneurial activity and annual economic growth. Same is true for every country like Pakistan i.e. developing nation.
 
4.  Describe the four key steps in the entrepreneurial process.  
  • Exploring the entrepreneurial context; includes the realities of the new economy, society’s laws and
    regulations that compose the legal environment, and the realities of the changing world of work. 
  • Identifying opportunity and possible competitive advantages 
  • Starting the venture; includes researching the feasibility of the venture, planning the ventures,
    organizing the ventures, and launching the venture. 
  • Managing the venture; includes managing processes, people, and growth. 

5.  What do entrepreneurs do?

Initially, an entrepreneur is engaged in assessing the potential for the venture, and then dealing with start-up issues. Once the venture is up and running, the entrepreneur’s attention switches to managing it. Finally, the entrepreneur must manage the venture’s growth.

6.  Why are social responsibility and ethical considerations important to entrepreneurs?

Ethical considerations play a role in decisions and actions of entrepreneurs. The results of a study of approximately 300 entrepreneurs and corporate managers showed that entrepreneurs generally have more strict ethical standards than do managers and are also better able to live by their beliefs, probably because they have more control over their decisions and actions.

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