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Accounting as an information system. Basic accounting principles.Стр 1 из 3Следующая ⇒ Accounting as an information system. Basic accounting principles. Accounting is an information system that measures, processes, and communicates financial information about an identifiable economic entity. Accounting: 1 Cost (management, managerial) accounting; 2 Financial accounting Financial accounting is the process that culminates in the preparation of financial information for use by external parties. Financial information is used to make decisions about the firm. Examples of financial information: ● Financial statements, including footnote disclosures ● Other (e.g. Management Discussion & Analysis, supplementary schedules, management forecasts, etc.) 1.Economic Entity 2. Going Concern 3. Monetary Unit 4. Time Period 5. Matching 6. Conservatism (prudence) 7. Accrual Accounting: Revenue recognized when earned; Expenses recognized when incurred8. The concept of separate entity The double-entry system. Elements of financial statements. An account is the basic storage unit for accounting data. An accounting system has separate accounts for most of the assets, liabilities, components of owner’s equity, including revenues and expenses. Asset, liability, owner’s equity accounts are shown on the balance sheet. Expense and revenue accounts are shown on the income statement. A list of account numbers with the corresponding account names is called a chart of accounts. An account has 3 parts: 1. A title. 2. A left side which is called the debit side, or the debit. 3. A right side which is called the credit side, or the credit. This form of the account is called a T-account, and is used to analyze transactions. The double-entry system is based on the principle of duality. In the double-entry system each transaction must be recorded at least in one debit and in one credit, in such a way that the total amount of debits and the total amount of credits equal each other. And the whole system is always in balance. All accounting systems are based on this principle of duality.
Presentation of financial statements. Financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management’s stewardship of the resources entrusted to it. To meet this objective, financial statements provide information about an entity’s: (a) assets(b) liabilities;(c) equity; (d) income and expenses, including gains and losses; (e) contributions by and distributions to owners in their capacity as owners; and (f) cash flows. A complete set of financial statements comprises: (a) balance sheet (b) income statement; (c) a statement of changes in equity; (d) a statement of cash flows; (e) notes, comprising a summary of significant accounting policies and other explanatory information. An entity shall clearly identify each financial statement and the notes. In addition, an entity shall display the following information: (a) the name of the reporting entity, and any change in that information from the end of the preceding reporting period; (b) whether the financial statements are of an individual entity or a group of entities; (c) the date of the end of the reporting period or the period covered by the set of financial statements or notes; (d) the presentation currency; (e) the level of rounding used in presenting amounts in the financial statements. As a minimum, the balance sheet shall include line items that present the following amounts: (a) property, plant and equipment; (b) intangible assets; (c) financial assets; (d) inventories; (e) trade and other receivables; (f) cash and cash equivalents; (g) trade and other payables; (h) provisions; (i) financial liabilities; (j) liabilities and assets for current tax and deferred tax; (k) issued capital and reserves.
4. Property, plant and equipment: definition, cost, depreciation methods. Property, plant and equipment are tangible items that: — (a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and — (b) are expected to be used during more than 1 year. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Carrying amount is the amount at which an asset is recognized after deducting any accumulated depreciation. (a) land;(b) buildings;(c) machinery;(d) ships;(e) aircraft;(f) motor vehicles;(g) furniture and fixtures; (h) office equipment;(i) bearer plants. An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost. The cost of an item of PP&E comprises: — (a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts. — (b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. — (c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. — Depreciation methods: — 1. Straight-line method — 2. Diminishing-balance (declining-balance) method — 3. Units-of-production method — 4. Sum-of-years’ digits method
Balance sheet: purpose and structure. The purpose of the balance sheet is to show the financial position of a company on a certain date. For this reason, it is often called the statement of financial position and is dated as of a certain date. The balance sheet presents a view of the company as the holder of resources, or assets, that are equal to the sources of, or claims against, those assets. The sources consist of the company’s liabilities and the owners’ equity in the company. Income statement: purpose and structure. Its connection with the balance sheet. The income statement, also known as a profit-and-loss statement, shows total revenues and total expenses over a specific time period. Accountants typically prepare income statements on a monthly, quarterly and annual basis. The income statement shows whether the company is making a profit or not. It sums up all the company's revenues and subtracts all of its expenses. Whatever is left is a profit or loss. Managers must know how their business is performing and if it is profitable. If not, changes must be made, or the company will go out of business. Managers use the income statement to analyze the profit and expense performance of their businesses. The balance sheet and income statement can be used together to evaluate the efficiency of a company's operations.Another way to use the income statement and the balance sheet together is to analyze a company's ability to pay its debts.
The purpose of a balance sheet and income statement is to let managers know how their businesses are performing and whether they need to take corrective actions.
Учет денежных средств. Денежные расчеты осуществляются в форме движения наличных денег и денег в безналичной форме. Каждая организация должна иметь кассу, в которой могут находиться остатки наличных денег в пределах установленного лимита. Всю денежную наличность сверх лимита остатка денег в кассе необходимо сдать в банк.Накопление наличных денег в кассе сверх лимита допускается в дни выплат заработной платы, стипендий и т.д., и в выходные, нерабочие праздничные дни. Организации имеют право производить расчеты наличными деньгами между юридическими лицами в размере не более 100 тыс. руб. в день по одному платежу. Из касс наличные деньги выдаются по расходным кассовым ордерам или другим документам с наложением штампа с реквизитами расходного кассового ордера. Кассовые документы подписываются главным бухгалтером или бухгалтером, а также кассиром. Все поступления и выдачи наличных денег учитываются в кассовой книге, которая открывается только одна в организации. Подотчетное лицо обязано в срок (не более 3 дней после дня истечения срока) предъявить главному бухгалтеру или бухгалтеру авансовый отчет с прилагаемыми подтверждающими документами. Выдача наличных денег под отчет проводится при условии полного погашения задолженности по ранее полученной под отчет сумме наличных денег. Помещение кассы должно быть изолировано. При смене кассира, а также в сроки, установленные руководителем организации, производится инвентаризация кассы.
Liquidityratios. Company’s liquidity is its ability to meet its current obligations/liabilities and a mediate of financial health Working capital (собственныеоборотныесредства)= All current assets - current liabilities If a business has a positive WC it indicates that in case of emergency the entity can pay all of its ST debts. 2. Cash ratio (коэффициентабсолютнойликвидности)= Cash and cash equivalents + marketable securities/financial assets/ST investments divide by current liabilities This signifies a company’s ability to meet its ST liabilities with its cash marketable securities. Must be more than 1 (in Russia more that 0,2 or 20%) ИзвсейдоликраткосрочныхобязательствможетпогаситьХ (наличными)
3. Quick ratio= (Cash + cash equivalents + marketable + AR)/current liabilities Shows abilities of a company to meet its current liabilities with cash, marketable securities and AR 4. Current ratio= Current assets/current liabilities Profitabilityratios. Показателирентабельности Show a company’s ability to generate profits from operations. Focus on returns on investment in inventory and other assets. How well a company can achieve profits from their operations 1. Return on assets ROA=net income/average total assets 2. Return on equity= net income/average total equity 3. Profit margin (Рентабельностьпоприбыли)= operating income/revenue 4. Gross profit margin= gross profit/revenue 5. Net profit margin= net income/revenue Activityratios. measure the efficiency of the company in using it’s resources 1. AR Turnover ratios reflect the number of times assets flow into and out of the company during the period AR turnover = revenue/average AR (in times) Shows how many times AR are created and collected during the period 2. Days to collect AR = 365/AR turnover 3. Inventory turnover= COGS/average inventory Shows how many times inventory is created and sold during the period 4. Days to sell inventory = 365/inventory turnover 5. Asset turnover. = revenue/average total assets 6. Equity turnover= revenue/average total equity Accounting as an information system. Basic accounting principles. Accounting is an information system that measures, processes, and communicates financial information about an identifiable economic entity. Accounting: 1 Cost (management, managerial) accounting; 2 Financial accounting Financial accounting is the process that culminates in the preparation of financial information for use by external parties. Financial information is used to make decisions about the firm. Examples of financial information: ● Financial statements, including footnote disclosures ● Other (e.g. Management Discussion & Analysis, supplementary schedules, management forecasts, etc.) 1.Economic Entity 2. Going Concern 3. Monetary Unit 4. Time Period 5. Matching 6. Conservatism (prudence) 7. Accrual Accounting: Revenue recognized when earned; Expenses recognized when incurred8. The concept of separate entity   ЧТО ПРОИСХОДИТ ВО ВЗРОСЛОЙ ЖИЗНИ? Если вы все еще «неправильно» связаны с матерью, вы избегаете отделения и независимого взрослого существования...  ЧТО ПРОИСХОДИТ, КОГДА МЫ ССОРИМСЯ Не понимая различий, существующих между мужчинами и женщинами, очень легко довести дело до ссоры...  Что делать, если нет взаимности? А теперь спустимся с небес на землю. Приземлились? Продолжаем разговор...  ЧТО И КАК ПИСАЛИ О МОДЕ В ЖУРНАЛАХ НАЧАЛА XX ВЕКА Первый номер журнала «Аполлон» за 1909 г. начинался, по сути, с программного заявления редакции журнала... Не нашли то, что искали? Воспользуйтесь поиском гугл на сайте:
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