Zusammenfassung der Ressource
Accounting
- Bookkeeping
- Involves recording of business transactions
- Accounting
- Process of
recording,summarizing,analysing,interpreting
and communicating the financial information
of an organisation
- Stakeholders
- Bank
- Interested in firm's profit
- Decide of they should grant loan to firm
- Customers
- Interested in firm's profit
- To know if there is after-sale support
- Employees
- Interested in firm's profit & cash flow
- To know if the firm is able to pay their salaries
promptly, the amount of bonus, career prospects
- Majar roles in business
- Stewardship
- Decision-making
- Professional ethics
- Objectivity
- Be unbiased
- Not influenced by personal
feelings, gains
- Integrity
- Straightforward & honest
- Sole proprietorship
- manage business by himself, may
hire pro to help
- Advantages
- Owner has full control
- Owner enjoys all profits
- Disadvantages
- Owner loses all
- If buss fails, he has to pay all the debts
- Example : Hawker
- Company
- Min 1 owner
- Public company/
Private company
- Disadvantage
- Control is diluted
- Profits are shared among shareholders
- Elements of accounting
- Assets
- Resources OWNED by
business to carry out its
activities
- Non-current
asset
- Intention to be used in
business to generate
income
- Inventory
- Intention of
resale
- Liability
- Amount OWED by business to other
business or individuals (debt)
- Equity
- Amount CONTRIBUTED by the
owner and PROFIT made by the
business
- Income
- Amount EARNED from
selling goods or providing
services
- Expense
- INCURRED by
business to earn
income
- Benefits last
shorter than
assets
- Equation
- A = L + E
- Asset = Liability + Equity