Kế toán, kiểm toán - The system of accounting

The System of AccountingThe Entity ConceptAny organizational unitThe Entity ConceptAny organizational unit for which we wantThe Entity ConceptAny organizational unit for which we want financial informationAssetsAnything of value held by an organizationAssets haveAssetsAnything of value held by an organizationAssets havePotential usefulnessAssetsAnything of value held by an organizationAssets havePotential usefulnessFuture usefulnessAssetsAnything of value held by an organizationAssets havePotential usefulnessFuture usefulnessEconomic ValueEquitiesClaims against the total assets of an organizationLiabilitiesClaims of nonownersOwner's EquityClaims of ownersRevenuesInflows of assets that result from performing services or selling goodsRevenues are realized whenthe service is performed orRevenuesInflows of assets that result from performing services or selling goodsRevenues are realized whenthe service is performed orthe goods are deliveredExpensesOutflows of assets or incurrence of liabilities while earning revenuesA business incurrs expenses to earn revenuesThe Accounting EquationThings of Value = ClaimsAssets = EquitiesAssets = Liabilities + Owner's EquityThe AccountAccount TitleThe AccountLeft sideAccount TitleThe AccountLeft sideRight sideAccount TitleThe AccountLeft sideRight sidethe debit sideAccount TitleThe AccountLeft sideRight sidethe debit sidethe credit sideAccount TitleSummary of the Debit/Credit RulesAssetsSummary of the Debit/Credit RulesAssetsAppear on the left (debit) side of the equationSummary of the Debit/Credit RulesAssetsAppear on the left (debit) side of the equationTherefore we:Increase them with debitsDecrease them with creditsSummary of Debit/Credit RulesLiabilitiesSummary of Debit/Credit RulesLiabilitiesAppear on the right (credit) side of the equationSummary of Debit/Credit RulesLiabilitiesAppear on the right (credit) side of the equationTherefore we:Increase them with creditsDecrease them with debitsSummary of Debit/Credit RulesOwners' EquitySummary of Debit/Credit RulesOwners' EquityAppear on the right (credit) side of the equationSummary of Debit/Credit RulesOwners' EquityAppear on the right (credit) side of the equationTherefore:Increase them with credits Decrease them with debitsSummary of Debit/Credit RulesChanges in owners' equityIssuances of common stockSummary of Debit/Credit RulesChanges in owners' equityIssuances of common stockCauses increase in owners' equitySummary of Debit/Credit RulesChanges in owners' equityIssuances of common stockCauses increase in owners' equityRecorded by regular owners' equity rulesIncreased with creditsDecreased with debitsSummary of Debit/Credit RulesChanges in owners' equityDividendsSummary of Debit/Credit RulesChanges in owners' equityDividendsCause decreases in owners' equitySummary of Debit/Credit RulesChanges in owners' equityDividendsCause decreases in owners' equityRecorded opposite as regular owners' equityIncreased with debitsDecreased with creditsSummary of Debit/Credit RulesChanges in owners' equityRevenuesSummary of Debit/Credit RulesChanges in owners' equityRevenuesCause increases in owners' equitySummary of Debit/Credit RulesChanges in owners' equityRevenuesCause increases in owners' equityRecorded by regular owners' equity rulesIncreased with creditsDecreased with debitsSummary of Debit/Credit RulesChanges in owners' equityExpensesSummary of Debit/Credit RulesChanges in owners' equityExpensesCause decreases in owners' equitySummary of Debit/Credit RulesChanges in owners' equityExpensesCause decreases in owners' equityRecorded opposite as regular owners' equityIncrease with debitsDecreased with creditsRecords in the Accounting SystemJournalBook of original entryChronological record of eventsLedgerBook of final entryCategorical record of eventsJournal EntriesWhat information do we need to record?DateJournal EntriesWhat information do we need to record?DateDebit accountJournal EntriesWhat information do we need to record?DateDebit accountDebit amountJournal EntriesWhat information do we need to record?DateDebit accountDebit amountCredit accountJournal EntriesWhat information do we need to record?DateDebit accountDebit amountCredit accountCredit amountJournal EntriesWhat information do we need to record?DateDebit accountDebit amountCredit accountCredit amountSupplementary informationJournal EntryDec. 1 Journal EntryDec. 1 Cash Journal EntryDec. 1 Cash 25,000Journal EntryDec. 1 Cash 25,000 Common Stock Journal EntryDec. 1 Cash 25,000 Common Stock 25,000Journal EntryDec. 1 Cash 25,000 Common Stock 25,000 Issuance of common stockPostingProcess of transferringPostingProcess of transferring the amounts in the journalPostingProcess of transferring the amounts in the journal to the ledgerPosting ProcessLocate the ledger account for the debit accountEnter the date, journal page number, and debit amount in the ledgerEnter the ledger account number in the journal entryPosting ProcessLocate the ledger account for the credit accountEnter the date, journal page number, and credit amount in the ledgerEnter the ledger account number in the journal Trial BalanceA test of the accuracy of journalizing and posting processPreparation Trial BalanceA test of the accuracy of journalizing and posting processPreparation List each ledger account and place the ending account balance in the proper columnTrial BalanceA test of the accuracy of journalizing and posting processPreparation List each ledger account and place the ending account balance in the proper columnTotal the debit and credit columnsTrial BalanceA test of the accuracy of journalizing and posting processPreparation List each ledger account and place the ending account balance in the proper columnTotal the debit and credit columnsCompare the totalsFinancial StatementsPrepared from the information contained in the trial balanceFour primary statementsFinancial StatementsPrepared from the information contained in the trial balanceFour primary statementsIncome StatementFinancial StatementsPrepared from the information contained in the trial balanceFour primary statementsIncome StatementStatement of Owner's EquityFinancial StatementsPrepared from the information contained in the trial balanceFour primary statementsIncome StatementStatement of Owner's EquityBalance SheetFinancial StatementsPrepared from the information contained in the trial balanceFour primary statementsIncome StatementStatement of Owner's EquityBalance SheetStatement of Cash FlowsFinancial StatementsTitleIncome statementTitleCompany nameIncome statementTitleCompany nameStatement nameIncome statementTitleCompany nameStatement nameFor the period ending date or dateIncome statementTitle - For the period ending dateList revenues and subtotalList expenses and subtotalSubtract expenses from revenuesStatement of Owners' EquityTitleFor the period ending dateList the beginning balance in common stockAdd issuances of common stockSubtotal ending common stockStatement of Owner's EquityList beginning balance in retained earningsAdd net incomeDeduct dividendsSubtotal ending retained earningsTotal common stock and retained earningsBalance SheetTitleDateAssetsBalance SheetTitleDateAssetsFirst list and subtotal current assetsBalance SheetTitleDateAssetsFirst list and subtotal current assetsThen list and subtotal property, plant, and equipmentBalance SheetTitleDateAssetsFirst list and subtotal current assetsThen list and subtotal property, plant, and equipmentDetermine total assetsBalance SheetLiabilitiesBalance SheetLiabilitiesFirst list and subtotal current liabilitiesBalance SheetLiabilitiesFirst list and subtotal current liabilitiesThen list and subtotal long-term liabilitiesBalance SheetLiabilitiesFirst list and subtotal current liabilitiesThen list and subtotal long-term liabilitiesTotal all liabilitiesBalance SheetOwners’ EquityBalance SheetOwners’ EquityEnter ending common stock and retained earnings from Statement of Owners’ EquityBalance SheetOwners’ EquityEnter ending common stock and retained earnings from Statement of Owners’ EquityTotal liabilities and owners' equityStatement of Cash FlowsTitleFor the period endingThree sectionsStatement of Cash FlowsTitleFor the period endingThree sectionsCash Flows from Operating ActivitiesStatement of Cash FlowsTitleFor the period endingThree sectionsCash Flows from Operating ActivitiesCash Flows from Investing ActivitiesStatement of Cash FlowsTitleFor the period endingThree sectionsCash Flows from Operating ActivitiesCash Flows from Investing ActivitiesCash Flows from Financing Activities