Part 1For this first part, you will set up your own fictional business using either GAAP or IFRS standards. In a typed document, accomplish the following:Provide the name and location of your businessIdentify the goods and/or services offeredIdentify which accounting standards will be usedProvide a list of accounts (also known as the chart of accounts); your list must include assets, liabilities, equity, revenue, and expense as well as current and long-term assetsProvide beginning balance amounts to each account in the listCreate an accounting journal consisting of a minimum of ten business transactionsConstruct basic financial statements based on your transactionsPerform a basic ratio analysis to assess the success or failure of the businessPart 2Your business is now providing goods and services to people across the world. You have also started working with multiple currencies. In your document, describe how working with multiple currencies can have an effect on financial on financial statements. List the steps you could take to reduce the risk of loss to your business when working with multiple currencies.

Part 1

1. Business Name and Location: "Healthy Bites", located in New York City, USA.
2. Goods/Services Offered: We offer a variety of healthy, organic food items including salads, smoothies, and whole grain sandwiches.
3. Accounting Standards Used: We will use GAAP (Generally Accepted Accounting Principles) as we are based in the USA.
4. Chart of Accounts:
   • Assets: Cash ($10,000), Accounts Receivable ($0), Inventory ($5,000), Equipment ($20,000)
   • Liabilities: Accounts Payable ($0), Long-term Debt ($15,000)
   • Equity: Common Stock ($20,000)
   • Revenue: Sales ($0)
   • Expenses: Cost of Goods Sold ($0), Rent ($2,000), Utilities ($500), Salaries ($3,000)
5. Accounting Journal: This will include transactions such as purchasing inventory, making sales, paying expenses, etc.
6. Financial Statements: These will be created based on the transactions recorded in the accounting journal.
7. Ratio Analysis: This will be performed to assess the financial health of the business.

Part 2

Working with multiple currencies can affect financial statements due to fluctuations in exchange rates. This can lead to gains or losses when converting foreign currency transactions into the business's functional currency.

Steps to reduce the risk of loss when working with multiple currencies:

1. Use Forward Contracts: These allow the business to lock in an exchange rate for a future date, reducing the risk of fluctuating exchange rates.
2. Diversification: By doing business in multiple countries and dealing in multiple currencies, the business can spread its risk.
3. Regular Monitoring: Keep a close eye on foreign exchange markets and economic indicators that can affect currency values.
4. Seek Professional Advice: Consult with financial advisors or use specialized financial services that can provide guidance on managing foreign exchange risk.