This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, the accounting cycle and basis. It describes the different types of accounts, rules of double entry system and branches of accounting. It also explains the accounting process including journal, ledger, trial balance and errors. The accounting concepts, conventions and terminology are introduced along with the different books of accounts used.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
This document provides an introduction to financial accounting. It discusses key topics such as the nature and purpose of accounting, accounting as an aid to decision making, the major financial statements including the balance sheet, and different forms of business ownership like sole proprietorships, partnerships, and corporations. The balance sheet, in particular, is explained in detail including its key components of assets, liabilities, and owners' equity.
This document provides an overview of accounting basics and principles. It defines accounting as the process of identifying, recording, and communicating financial information. The objectives of accounting are to provide useful information to decision makers through relevance, reliability, and other qualitative characteristics. The document outlines key accounting principles like the business entity, accrual basis, and matching principles. It also describes the main financial statements - the balance sheet, income statement, statement of cash flows, and statement of owners' equity - and their purpose in communicating financial information to both internal and external users of accounting data.
This document provides definitions and explanations of key accounting concepts and terms. It discusses accounting as a system to record and communicate financial information. Key topics covered include the accounting equation, double-entry bookkeeping system, types of accounts, accounting cycle, journals, ledgers, debits and credits, balancing accounts, and more.
The document discusses cash flow statements, including:
1. Cash flow statements describe changes in cash between periods by showing cash inflows and outflows from operating, investing, and financing activities.
2. The purpose is to provide information about a company's gross receipts and payments over a period of time to assess liquidity and profitability.
3. Advantages include ascertaining liquidity, determining optimal cash balances, cash management, and performance evaluation.
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
This document provides an introduction to financial accounting. It discusses key topics such as the nature and purpose of accounting, accounting as an aid to decision making, the major financial statements including the balance sheet, and different forms of business ownership like sole proprietorships, partnerships, and corporations. The balance sheet, in particular, is explained in detail including its key components of assets, liabilities, and owners' equity.
This document provides an overview of accounting basics and principles. It defines accounting as the process of identifying, recording, and communicating financial information. The objectives of accounting are to provide useful information to decision makers through relevance, reliability, and other qualitative characteristics. The document outlines key accounting principles like the business entity, accrual basis, and matching principles. It also describes the main financial statements - the balance sheet, income statement, statement of cash flows, and statement of owners' equity - and their purpose in communicating financial information to both internal and external users of accounting data.
This document provides definitions and explanations of key accounting concepts and terms. It discusses accounting as a system to record and communicate financial information. Key topics covered include the accounting equation, double-entry bookkeeping system, types of accounts, accounting cycle, journals, ledgers, debits and credits, balancing accounts, and more.
The document discusses cash flow statements, including:
1. Cash flow statements describe changes in cash between periods by showing cash inflows and outflows from operating, investing, and financing activities.
2. The purpose is to provide information about a company's gross receipts and payments over a period of time to assess liquidity and profitability.
3. Advantages include ascertaining liquidity, determining optimal cash balances, cash management, and performance evaluation.
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
This document provides an overview of financial accounting and financial statements. It discusses the objectives, components, and characteristics of financial statements, including the balance sheet, income statement, and statement of cash flows. The key components covered are the trading account, profit and loss account, manufacturing account, and appropriation account. Examples are provided of how to prepare trading and profit and loss accounts from given financial information. The document also discusses the treatment of adjustments in financial statements such as closing stock, outstanding expenses, prepaid expenses, and depreciation.
Accounting involves recording financial transactions, classifying and summarizing them, then analyzing, interpreting, and communicating the information to users. It is defined as the process of identifying, measuring, and communicating economic information to allow for informed judgments and decisions. The accounting process includes recording transactions, classifying them, summarizing, analyzing and interpreting, then communicating the results. Bookkeeping records transactions at a basic level, while accounting provides summarized and analyzed information for decision making.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
The document provides an overview of basic accounting concepts and the accounting cycle. It defines accounting as a process to record and communicate financial information. It explains the accounting equation that balances assets, liabilities, and owner's equity. Transactions are exchanges that affect accounts. The accounting cycle includes analyzing transactions, journalizing, posting, preparing a trial balance, adjusting entries, financial statements, and closing entries. The document also outlines users and branches of accounting.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
The document provides an overview of the accounting cycle, which is the process of recording business transactions from source documents into journals, then posting them to ledgers and preparing financial statements. It includes examples of 10 transactions recorded in the general journal and corresponding ledger accounts. It concludes with the preparation of a trial balance, income statement, capital statement, and balance sheet from the ledger accounts.
The document discusses GAAP (Generally Accepted Accounting Principles). [1] GAAP are the common set of accounting standards, procedures and rules that govern financial accounting practices. [2] They provide guidelines for proper revenue recognition, balance sheet classifications, and share measurements to provide a fair representation of a company's financial status. [3] GAAP principles are divided into accounting concepts like the money measurement concept and dual aspect concept, and accounting conventions like full disclosure and materiality.
The document discusses the meaning, contents, and purpose of ledgers in accounting. It explains that a ledger is the principal book of accounts that contains all personal, real, and nominal accounts from the journal. Transactions are posted from the journal to the relevant accounts in the ledger. Accounts are balanced by determining the difference between total debits and credits, and the ledger provides a complete record of business transactions and accounting information. Examples are given of ledger layout, posting entries, and balancing accounts.
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It involves identifying, measuring, analyzing, and communicating financial and non-financial information. The key functions of management accounting are to modify raw accounting data, interpret financial analyses, and assist with management control through tools like budgeting and performance analysis to evaluate operations and fix issues. Management accounting differs from financial accounting in its focus on internal users, future orientation, and inclusion of both monetary and non-monetary information to support management planning, implementation, and decision-making.
Accounting for non accounting professionalsMunir Ahmad
This document provides an overview of basic accounting concepts for non-accounting professionals. It defines accounting as the process of recording, analyzing, and communicating financial transactions. It then outlines key accounting concepts like the basic accounting equation of assets equaling liabilities plus equity, the different accounting cycles like purchase, sales, and payroll, and basic financial statements including the balance sheet, income statement, and cash flow statement. It concludes with explaining tools for analysis like ratio analysis and an introduction to cost accounting, financial planning, and taxation.
Financial statements are formal records that evaluate a company's financial stability, performance, and liquidity. There are three main financial statements:
1) The income statement shows profits/losses over time.
2) The balance sheet presents assets, liabilities, and equity on a given date.
3) The cash flow statement shows cash inflows and outflows from operating, investing, and financing activities over time.
Together these statements provide useful information to investors and management, while also having some limitations since they only represent past performance and financial snapshots versus future potential.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
The accounting equation states that assets are equal to liabilities plus owner's equity. It represents the relationship between what a business owns (assets), what it owes (liabilities), and the owner's claim on the assets (owner's equity). Every transaction affects at least two accounts to maintain the balance of the accounting equation. The equation ensures that the sources of a business's assets are identified as either belonging to creditors (liabilities) or the owner (owner's equity).
Management accounting is the process of analyzing business costs and operations to prepare internal reports and records to aid managers' decision-making. It involves collecting accounting information using financial and cost accounting and translating it into useful information for management. The objectives of management accounting include measuring performance, assessing risk, allocating resources, and presenting financial statements. It uses tools like budgeting, variance analysis, and cash flow analysis to help managers with planning, decision-making, and control.
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
This document provides an overview of key accounting concepts including bookkeeping, accounting, financial accounting, cost accounting, management accounting, accounting cycle, accounting equation, types of accounts, rules of accounting, analysis of transactions, and journal entries. It defines accounting as the process of collecting, recording, classifying, and summarizing financial transactions. It also describes the different types of accounts (asset, liability, capital, income, expense), users of accounting information, and the steps in the accounting cycle.
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
The document provides an overview of basic financial accounting concepts including the definition of accounts, accounting principles and processes, types of accounts and ledgers, the accounting cycle, and key accounting terminology. It also discusses the different bases, systems, and branches of accounting as well as the advantages, limitations, and users of accounting information.
This document provides an overview of financial accounting and financial statements. It discusses the objectives, components, and characteristics of financial statements, including the balance sheet, income statement, and statement of cash flows. The key components covered are the trading account, profit and loss account, manufacturing account, and appropriation account. Examples are provided of how to prepare trading and profit and loss accounts from given financial information. The document also discusses the treatment of adjustments in financial statements such as closing stock, outstanding expenses, prepaid expenses, and depreciation.
Accounting involves recording financial transactions, classifying and summarizing them, then analyzing, interpreting, and communicating the information to users. It is defined as the process of identifying, measuring, and communicating economic information to allow for informed judgments and decisions. The accounting process includes recording transactions, classifying them, summarizing, analyzing and interpreting, then communicating the results. Bookkeeping records transactions at a basic level, while accounting provides summarized and analyzed information for decision making.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
The document provides an overview of basic accounting concepts and the accounting cycle. It defines accounting as a process to record and communicate financial information. It explains the accounting equation that balances assets, liabilities, and owner's equity. Transactions are exchanges that affect accounts. The accounting cycle includes analyzing transactions, journalizing, posting, preparing a trial balance, adjusting entries, financial statements, and closing entries. The document also outlines users and branches of accounting.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
The document provides an overview of the accounting cycle, which is the process of recording business transactions from source documents into journals, then posting them to ledgers and preparing financial statements. It includes examples of 10 transactions recorded in the general journal and corresponding ledger accounts. It concludes with the preparation of a trial balance, income statement, capital statement, and balance sheet from the ledger accounts.
The document discusses GAAP (Generally Accepted Accounting Principles). [1] GAAP are the common set of accounting standards, procedures and rules that govern financial accounting practices. [2] They provide guidelines for proper revenue recognition, balance sheet classifications, and share measurements to provide a fair representation of a company's financial status. [3] GAAP principles are divided into accounting concepts like the money measurement concept and dual aspect concept, and accounting conventions like full disclosure and materiality.
The document discusses the meaning, contents, and purpose of ledgers in accounting. It explains that a ledger is the principal book of accounts that contains all personal, real, and nominal accounts from the journal. Transactions are posted from the journal to the relevant accounts in the ledger. Accounts are balanced by determining the difference between total debits and credits, and the ledger provides a complete record of business transactions and accounting information. Examples are given of ledger layout, posting entries, and balancing accounts.
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It involves identifying, measuring, analyzing, and communicating financial and non-financial information. The key functions of management accounting are to modify raw accounting data, interpret financial analyses, and assist with management control through tools like budgeting and performance analysis to evaluate operations and fix issues. Management accounting differs from financial accounting in its focus on internal users, future orientation, and inclusion of both monetary and non-monetary information to support management planning, implementation, and decision-making.
Accounting for non accounting professionalsMunir Ahmad
This document provides an overview of basic accounting concepts for non-accounting professionals. It defines accounting as the process of recording, analyzing, and communicating financial transactions. It then outlines key accounting concepts like the basic accounting equation of assets equaling liabilities plus equity, the different accounting cycles like purchase, sales, and payroll, and basic financial statements including the balance sheet, income statement, and cash flow statement. It concludes with explaining tools for analysis like ratio analysis and an introduction to cost accounting, financial planning, and taxation.
Financial statements are formal records that evaluate a company's financial stability, performance, and liquidity. There are three main financial statements:
1) The income statement shows profits/losses over time.
2) The balance sheet presents assets, liabilities, and equity on a given date.
3) The cash flow statement shows cash inflows and outflows from operating, investing, and financing activities over time.
Together these statements provide useful information to investors and management, while also having some limitations since they only represent past performance and financial snapshots versus future potential.
It's a good presentation for those students who just started to learn accounting.
Basic theory of accounting must be clear, and there for here I have uploaded this presentation.
The accounting equation states that assets are equal to liabilities plus owner's equity. It represents the relationship between what a business owns (assets), what it owes (liabilities), and the owner's claim on the assets (owner's equity). Every transaction affects at least two accounts to maintain the balance of the accounting equation. The equation ensures that the sources of a business's assets are identified as either belonging to creditors (liabilities) or the owner (owner's equity).
Management accounting is the process of analyzing business costs and operations to prepare internal reports and records to aid managers' decision-making. It involves collecting accounting information using financial and cost accounting and translating it into useful information for management. The objectives of management accounting include measuring performance, assessing risk, allocating resources, and presenting financial statements. It uses tools like budgeting, variance analysis, and cash flow analysis to help managers with planning, decision-making, and control.
Material for PGPSE participants of AFTERSCHOOOL CENTRE FOR SOCIAL ENTREPRENEURSHIP. PGPSE is an entrepreneurship oriented programme, open for all, free for all.
This document provides an overview of key accounting concepts including bookkeeping, accounting, financial accounting, cost accounting, management accounting, accounting cycle, accounting equation, types of accounts, rules of accounting, analysis of transactions, and journal entries. It defines accounting as the process of collecting, recording, classifying, and summarizing financial transactions. It also describes the different types of accounts (asset, liability, capital, income, expense), users of accounting information, and the steps in the accounting cycle.
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
The document provides an overview of basic financial accounting concepts including the definition of accounts, accounting principles and processes, types of accounts and ledgers, the accounting cycle, and key accounting terminology. It also discusses the different bases, systems, and branches of accounting as well as the advantages, limitations, and users of accounting information.
6 fixed assets, current assets, depreciation methodsDr.R. SELVAM
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, assets, liabilities, equity, revenue, and expenses. It describes the double-entry system of accounting and the accounting cycle of recording transactions in journals, posting to ledgers, preparing a trial balance, and developing financial statements. It also outlines accounting concepts, conventions, the different bases of accounting, and the types and roles of various accounts.
The document provides an overview of key accounting concepts for budding managers. It defines accounting and discusses its functions and branches. It also covers accounting terminology, the accounting cycle, classification of accounts, types of accounts, and accounting concepts such as business entity, money measurement, and matching. Finally, it discusses accounting conventions like consistency, materiality and conservatism, as well as funds flow statements.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions affecting a business. It also defines common accounting concepts like the balance sheet, which lists total assets and liabilities to show net worth, and the income statement, which records revenues and expenses. Finally, it outlines the different bases of accounting, including cash basis, accrual basis, and mixed basis.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions, and that the journal and ledger are used to record transactions with debits and credits. It also defines accounting concepts like assets, liabilities, revenues, and expenses. Finally, it outlines the cash, accrual, and mixed bases of accounting.
The document provides an introduction to accounting concepts and principles. It discusses how accounting records and measures financial transactions and provides information to various stakeholders. It defines accounting and outlines its objectives and users. It also describes key accounting terms, concepts and conventions like double-entry system, accounting equation, debits and credits rules. Finally, it discusses various books of accounts like journal, ledger, trial balance and accounting cycle.
This document outlines the topics covered in a course on fundamentals of accounting. It includes 5 units that cover topics such as basic bookkeeping concepts, preparation of financial statements, depreciation methods, and accounting for non-trading concerns. Key areas covered are journal entries, ledger, trial balance, bank reconciliation, single and double entry bookkeeping systems, accounting standards and concepts in India. The goal is to introduce foundational accounting principles and skills.
This document defines various accounting terms and types of accounting. It describes transactions, assets, liabilities, equity, revenues, expenses, and other basic accounting concepts. It then explains the main types of accounting as financial accounting, management accounting, governmental accounting, tax accounting, forensic accounting, project accounting, and social accounting. For each type, it provides a brief description of what it entails and how it differs from other accounting types.
Accounting is the process of recording, classifying, and summarizing financial transactions. It involves identifying transactions, recording them in journals, posting them to ledgers, and preparing trial balances and financial statements. The key types of accounts are personal, real, and nominal accounts which follow the golden rules of debit/credit. Subsidiary books like cash books, purchase books, and sales books are used to record regular transactions to ease the accounting process.
The document discusses corporate objectives, finance and accounting concepts, and basic accounting principles. It explains that every organization aims to achieve broad objectives over time through vision and mission statements. It also defines key accounting terms like assets, liabilities, revenues, and expenses; and accounting principles including revenue recognition, historical cost, and matching. The document outlines the recording of transactions, rules of debit and credit, and types of original books like journals and cash books.
This slide is all about accounting. such as
accounting cycle,Business, Proprietor,Capital, Drawings, Purchase, Purchases returns,Sales,Sales returns,Trade discount,Cash discount,Commission,Expense,Debtor (Account Receivable),Creditor,Assets,Liabilities,Stock (Inventory),Equity,Types of equity,Definition of Accounting,Types of equity,Financial Accounting,Cost Accounting,Management Accounting,Functions of Accounting
this slide is all about accounting such as It includes any activity undertaken for the purpose of earning profit e.g:
Banking business
An insurance business
A merchandise business etc
The amount with which the trader starts his business or the amount which is actually invested in the business at any given time is known as capital. This is the owners financial interest or holding in the business and is represents by the value of net assets.
Goods purchased are called purchases. When the goods are purchased for cash they are called cash purchases but if they are purchased for which payment will have to be made at some future date it is known as credit purchases.
It is a rebate or allowance from the scheduled price granted by the seller to the buyer.
Trade discount is usually granted in the following circumstances:
When selling to a fellow trader
When the buyer is an old customer
When sales are made in bulk.
As a custom of trade.
It is deduction or allowance allowed by the creditor to a debtor. If a person pays his debt before the due date of payment the receipt may grant him an allowance for doing so. This allowance is known as cash discount.Accounting cycle
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
Even if you did want to branch out into finance and economics, a background in accountancy lays the valuable groundwork for developing broader monetary theories. Accountants can hone their craft through the application of known methodologies.
An accountancy certification is always valuable. You’ll learn how to focus on money management, financial recording and reporting, and the best processes to save cash for a business or sole traders. These skills are desired in every industry. For most accountants, it’s never hard to find work.
Financial accounting in Masters of Management Studies by Prof. Subhash DalviKartik Mehta
It's all about Financial Accounting:
Financial accountancy is governed by both local and international accounting standards. GAAP (which stands for Generally Accepted Accounting Principles) is the standard framework for guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that accountants follow in recording and summarising and in the preparation of financial statements. On the other hand, IFRS (International Financial Reporting Standards) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards (IASs).
accountings and financial anulysis.pptxKrishan Saini
The document provides an overview of accounting concepts, principles, and equations. It defines accounting as the process of recording financial transactions and communicating financial information. Some key points covered include:
- The basic accounting equation is Assets = Liabilities + Owner's Equity, indicating that assets are equal to liabilities plus the owner's investment.
- Accounting principles include accrual basis, matching, full disclosure, consistency, and conservatism.
- Accounting concepts include business entity, money measurement, cost, going concern, and dual aspect.
- Accounting has expanded in scope to include businesses, non-profits, governments, and individuals.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
This document provides an overview of introductory accounting concepts including:
- The definition and objectives of accounting as an information system that measures, processes, and communicates financial information.
- The accounting process and cycle including identifying transactions, recording them, and communicating financial statements.
- The key financial statements - balance sheet, income statement, statement of cash flows - and what financial information they provide.
- Common accounts and how transactions affect the accounting equation.
This document provides an overview of basic accounting concepts and processes. It defines key terms like assets, liabilities, equity, revenue, and expenses. It explains accounting transactions and how debits and credits work for different types of accounts. The accounting cycle is summarized as analyzing transactions, journalizing entries, posting to ledger accounts, taking a trial balance, making adjustments, and preparing final financial statements like the income statement and balance sheet. The goal of the accounting system is to ensure the equality of debits and credits is maintained throughout the recording of business events.
This document provides information about unit costing and cost sheets. It defines key costing terms like unit cost, prime cost, factory cost, office cost, selling and distribution cost, and total cost. It explains the objectives and components of a cost sheet, including a sample proforma cost sheet. Examples are provided to demonstrate how to calculate costs from raw material consumption, work in progress, finished goods, and to prepare a full cost sheet. The treatment of scrap and various cost control techniques are also summarized.
The document discusses capital structure, which refers to the types of securities (debt vs equity) and their proportions that make up a company's total capital. An optimal capital structure minimizes a company's cost of capital. Factors that affect a company's capital structure choice include financial leverage, growth stability, cost of capital, risk tolerance, cash flow ability to service debt, firm size and nature, control and flexibility needs, and capital market conditions.
Definition of leverage, Types of Leverages, meaning of operating leverage, financial leverage, combined leverage, Formulas for Operating and financial leverage, variable cost, fixed cost, EBIT, Contribution, EPS-EBIT Analysis, Income statement, practical problems on leverages, etc.
Finance involves managing money and making decisions about assets and investments. It includes financial management, capital markets, and investments. Financial management involves acquiring funds, investment decisions about long-term projects, capital structure decisions about debt vs equity, dividend payout policies, and working capital management. Capital markets determine interest rates and prices of stocks and bonds. Investments analyze individual securities, construct portfolios, and evaluate market conditions. The finance function involves procuring funds and allocating them optimally through investment, financing, dividend, and working capital decisions. These decisions balance the interests of stakeholders under uncertainty.
This document discusses ethics and social responsibilities. It defines ethics as principles that outline moral codes of good and bad behavior for individuals and organizations. While laws set legal boundaries, ethics go further to define what is right and wrong. Many businesses develop their own codes of ethics to guide employees. An "ethics check" questions if a decision is legal, fair, and how it would make one feel if known publicly. A code of ethics should address honesty, integrity, respect, trust, responsibility, and citizenship. Businesses are now expected to act as socially responsible citizens by giving back to societies and communities.
This document provides an overview of budgets, budgeting processes, and budget types. It discusses that a budget quantitatively expresses plans to achieve objectives and allows for comparison of actual vs planned outcomes. The budgeting process involves identifying limiting factors, preparing functional budgets in a logical order, aggregating into a master budget, and comparing actuals to flexed budgets to identify variances. Different types of budgets include long-term/short-term, fixed/flexible, functional like sales/production, and the master budget. Budgets play roles in planning, control, communication, and motivation.
Standard costing involves establishing predetermined estimates of the costs of products or services, collecting actual costs, and comparing actual costs to the estimates. Standards are set for materials, labor, overhead, and selling prices/margins based on historical data, task analysis, and production process analysis. Material and labor standards consider factors like supplier prices, wage rates, and efficiency levels. Overhead standards may be based on a rate per labor hour. Comparing actuals to standards highlights variances that need management attention to control costs.
This document discusses environmental cost accounting and its objectives. It describes how environmental accounting aims to incorporate both economic and environmental information by measuring the social and environmental impacts of business decisions. It classifies environmental costs into prevention, detection, internal failure, and external failure costs and explains how identifying these costs can help with product pricing and cost savings. The document also discusses environmental footprints and key external impacts businesses have on the environment.
Group discussions are used to assess candidates' personality traits and skills relevant to an organization. In a group discussion, candidates are given a topic to discuss in a group for 15-20 minutes. This allows organizations to evaluate candidates' ability to work in a team, communicate effectively, and contribute constructively to discussions. Good communication skills, listening skills, leadership skills, and open-mindedness are some of the key traits assessed in group discussions.
The document discusses budgets, including:
- Budgets quantify plans to achieve objectives and compare actual vs planned outcomes.
- Functional budgets include sales, production, purchases, and labor budgets.
- The master budget summarizes all functional budgets in income statements, balance sheets, and cash flow statements.
China represents a large, growing, and resilient market with increasing normalization of business practices. It has a population of over 1.35 billion people and is the world's second largest economy. While China poses some political and business risks, it also offers opportunities as a low-cost manufacturing hub with a large talent pool. The Chinese government maintains a strong role in the economy through state-owned enterprises and banks, and the Communist Party exerts control over political and economic decision making. China has experienced rapid economic growth since implementing market reforms in the late 1970s.
This document outlines the seven steps for presenting a case report: 1) Present the facts of the case, 2) Define the main problem, 3) Analyze the problem, 4) Identify alternative solutions, 5) Evaluate each alternative using a SWOT analysis, 6) Recommend the best solution, 7) Provide an action plan for implementing the recommended solution. The case method is an important learning tool that allows students to analyze real or hypothetical situations systematically and practice problem-solving as a manager.
The summary provides an overview of the key aspects of the relationship between a banker and a customer according to the document:
1. The relationship can be general, where the banker is a debtor and the customer is a creditor, or it can be special, with the banker taking on additional roles as a trustee, bailee, lessor, agent, custodian, or guarantor.
2. Banks must follow know-your-customer guidelines and apply customer due diligence to comply with anti-money laundering regulations.
3. The main types of bank accounts are current accounts, savings accounts, fixed/term deposits, and recurring deposits, each with different eligibility and features.
Commercial banks in India play an important role in economic development by providing capital, credit, and financial services. They accelerate capital formation, provide financing to agriculture, industry and infrastructure, help monetize the rural economy by expanding branches, and implement monetary policy. Nationalization of banks in 1969 and 1980 aimed to ensure credit allocation aligned with development priorities and expand access to agricultural communities. The structure of the Indian banking system includes public sector banks, private sector banks, foreign banks, regional rural banks, and cooperative banks. Commercial banks perform key functions like accepting deposits, advancing loans, discounting bills, and providing agency and general services.
Commercial banks are able to lend out more money than they hold in deposits through the process of credit creation. When a customer deposits money in a bank, the bank records this as a primary deposit and is able to lend out a portion of it, creating a derivative deposit. This process of lending out a portion of deposits and those loans subsequently being deposited can be repeated across multiple banks, allowing for the multiple expansion of credit throughout the banking system. However, banks must maintain minimum cash reserves and there are other factors that place limitations on the total amount of credit that can be created.
The document provides an overview of the Indian banking system, including definitions of key banking terms, the functions and roles of banks, and the history and evolution of banking in India. It describes the different types of banks in India such as public sector banks, private sector banks, foreign banks, cooperative banks, regional rural banks, and specialized banks like NABARD, EXIM Bank, and NHB. It also discusses pre-reforms developments like the lead bank scheme and important milestones in Indian banking.
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A study featuring research from leading scholars to breakdown the science behind disinformation and tips for organizations to help their employees combat election disinformation.
Progress Report - Qualcomm AI Workshop - AI available - everywhereAI summit 1...Holger Mueller
Qualcomm invited analysts and media for an AI workshop, held at Qualcomm HQ in San Diego, June 26th. My key takeaways across the different offerings is that Qualcomm us using AI across its whole portfolio. Remarkable to other analyst summits was 50% of time being dedicated to demos / hands on exeriences.
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Leading the Development of Profitable and Sustainable ProductsAggregage
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While growth of software-enabled solutions generates momentum, growth alone is not enough to ensure sustainability. The probability of success dramatically improves with early planning for profitability. A sustainable business model contains a system of interrelated choices made not once but over time.
Join this webinar for an iterative approach to ensuring solution, economic and relationship sustainability. We’ll explore how to shift from ambiguous descriptions of value to economic modeling of customer benefits to identify value exchange choices that enable a profitable pricing model. You’ll receive a template to apply for your solution and opportunity to receive the Software Profit Streams™ book.
Takeaways:
• Learn how to increase profits, enhance customer satisfaction, and create sustainable business models by selecting effective pricing and licensing strategies.
• Discover how to design and evolve profit streams over time, focusing on solution sustainability, economic sustainability, and relationship sustainability.
• Explore how to create more sustainable solutions, manage in-licenses, comply with regulations, and develop strong customer relationships through ethical and responsible practices.
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AskXX Pitch Deck Course: A Comprehensive Guide
Introduction
Welcome to the Pitch Deck Course by AskXX, designed to equip you with the essential knowledge and skills required to create a compelling pitch deck that will captivate investors and propel your business to new heights. This course is meticulously structured to cover all aspects of pitch deck creation, from understanding its purpose to designing, presenting, and promoting it effectively.
Course Overview
The course is divided into five main sections:
Introduction to Pitch Decks
Definition and importance of a pitch deck.
Key elements of a successful pitch deck.
Content of a Pitch Deck
Detailed exploration of the key elements, including problem statement, value proposition, market analysis, and financial projections.
Designing a Pitch Deck
Best practices for visual design, including the use of images, charts, and graphs.
Presenting a Pitch Deck
Techniques for engaging the audience, managing time, and handling questions effectively.
Resources
Additional tools and templates for creating and presenting pitch decks.
Introduction to Pitch Decks
What is a Pitch Deck?
A pitch deck is a visual presentation that provides an overview of your business idea or product. It is used to persuade investors, partners, and customers to take action. It is a concise communication tool that helps to clearly and effectively present your business concept.
Why are Pitch Decks Important?
Concise Communication: A pitch deck allows you to communicate your business idea succinctly, making it easier for your audience to understand and remember your message.
Value Proposition: It helps in clearly articulating the unique value of your product or service and how it addresses the problems of your target audience.
Market Opportunity: It showcases the size and growth potential of the market you are targeting and how your business will capture a share of it.
Key Elements of a Successful Pitch Deck
A successful pitch deck should include the following elements:
Problem: Clearly articulate the pain point or challenge that your business solves.
Solution: Showcase your product or service and how it addresses the identified problem.
Market Opportunity: Describe the size, growth potential, and target audience of your market.
Business Model: Explain how your business will generate revenue and achieve profitability.
Team: Introduce key team members and their relevant experience.
Traction: Highlight the progress your business has made, such as customer acquisitions, partnerships, or revenue.
Ask: Clearly state what you are asking for, whether it’s investment, partnership, or advisory support.
Content of a Pitch Deck
Pitch Deck Structure
A pitch deck should have a clear and structured flow to ensure that your audience can follow the presentation.
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2. Account
• It is a unit of information that represents
business records.
• There are five types of accounts: Asset,
Liability, Equity, Revenue and Expense.
3. Accounting
• It is concerned with the use of which the
records are put, their analysis and
interpretation.
• It is the process of recording business
activities that make changes to accounts.
• Sales of products, Revenue from services
earned, Buying products and/or services and
so on.
4. Attributes of Accounting
• It is the art of recording business transactions.
• It is the art of classifying business
transactions.
• The transactions or events of a business must
be recorded in monetary terms.
• It is the art of summarizing financial
transactions.
• The results should be communicated to users.
5. Functions
•
•
•
•
Systematic record of business transactions.
Protecting the property of business.
Communicating results to users.
Compliance with legal requirements.
6. Users of Accounting Information
•
•
•
•
•
•
•
•
Owners
Creditors (Suppliers)
Investors
Employees
Government
Public
Research Scholars / Agencies
Managers
9. Limitations
•
•
•
•
Records only monetary transactions
Effect of price level changes not considered
No realistic information
Personal bias of accountant affects the
accounting statements
• Permits alternative treatments (LIFO, FIFO)
• No real test for managerial performance
• Historical in nature
10. Accounting Terminology
• Business: An organization created with the objective of
making a profit from the sale of goods or services.
• Book keeping: The act of systematically recording the
financial transactions affecting a business.
• Book Value: The net amount (original value plus or minus
any adjustments such as depreciation) showed in the
accounts for an asset, liability, or owners' equity item.
• Calendar Year: An entity's reporting year, covering 12
months.
• Transactions: Exchange of goods or services between
businesses or individuals. Can also be other events having
an economic impact on a business.
11. Accounting Terminology
• Journal: A book or original entry in a double-entry
bookkeeping system. The journal lists all transactions and
indicates the accounts to which they are posted.
• Journal Entry: A recording of a transaction where debits
equal credits.
• Ledger: A summary statement of all the transactions
relating to a person, asset, expense or income which have
taken place during a given period of time and show their
net effect.
• Trial Balance: A listing of all account balances that provides
a test of whether total debits equals total credits.
• Revenues: Increases in a company's resources from the
sale of goods or services.
12. Accounting Terminology
• Balance sheet: A balance sheet is an itemized
statement which lists the total assets and the total
liabilities of a given business to show its net worth at a
given moment in time (like a snapshot).
• Capital: Property or money used and owned by a
business and used to acquire future income or
benefits.
• Debtor: A debtor is a person who owes money. The
amount due from his is called debt.
• Creditor: A person to whom money is owing or
payable is called a creditor.
• Credit: An entry on the right side of a ledger account.
13. Accounting Terminology
• Goods: This includes all articles, commodities or
merchandise in which the business deals. Thus, cloth
would be goods for a dealer in cloth; furniture would be
goods for a dealer in furniture and so on.
• Assets: Economic resources owned or controlled by a
person or company.
• Net Assets: The difference between assets and liabilities.
• Liquidity: The availability of cash or ability to obtain it
quickly. Also used to determine debt repayment ability.
• Goodwill: An intangible asset that exists when a business is
valued at more than the fair market value of its net assets.
• Interest: The cost of the use of money.
14. Accounting Terminology
• Current Assets: Current assets are those assets of a company that
are expected to be converted to cash, sold, or consumed during
the normal operating cycle of the business (usually one year).
Examples are cash, accounts receivable, short-term investments,
US government bonds, inventories, and prepaid expenses.
• Current Liabilities: Liabilities to be paid within one year of the
balance sheet date.
• Drawings: Any amount or goods withdrawn by the owner of a
business for personal use is called drawings.
• Bad Debt: An uncollectible Account Receivable.
• Loss: A loss is expenditure without any benefit to the concern. On
the other hand, expense is incurred to result in some benefit.
Thus, amount spent on lighting is an expense but loss due to fire is
loss.
15. Accounting Terminology
• Income: It is an inflow of assets which results in an increase in the
owner’s equity.
• Expenditure: Expenditure takes place when an asset or service is
acquired. Expenditure will include both payment of a sum
immediately and a promise to pay it at a future date.
• Expense: An expenditure whose benefit is finished or enjoyed
immediately such as salaries, rent, etc.
• Turnover: It means total trading income from cash sales and credit
sales.
• Net worth: It means assets minus outside liabilities. Profits of a
business increase net worth whereas losses reduce the net worth
of a business.
• GAAP - Refer to Generally Accepted Accounting Principles.
16. Basis of Accounting
• Cash basis
– Actual cash receipts and payments
are recorded.
– Credit transactions are not recorded.
17. Basis of Accounting
• Accrual basis
– The income whether received or not but has been
earned or accrued during the period forms part of
the total income of the period.
– The firm has taken benefit of a particular service,
but has not paid within that period, the expenses
will relates to the period in which the service has
been utilized and not to the period in which
payment for it is made.
19. System of Accounting
• Single Entry System: This system has no
complete record of business transactions
done during a specified period.
• Double Entry System: One account is given
debit while the other account is given credit
with an equal amount.
21. Types of Accounts
• Natural Person’s Personal Account: An account recording
transactions with an individual human being is known as a
natural person’s Personal Account. (eg. Krishna account)
• Artificial Person’s Personal Account: An account recording
financial transactions with an artificial person created by
law or otherwise is called an artificial person’s personal
account. (eg. VSL College)
• Representative Person’s Personal Account: An account
indirectly representing a person or persons is known as a
representative account. (eg. Salaries account)
• Tangible Real Account: An asset which can be touched,
seen, and measured. (eg. Machinery Account)
• Intangible Real Account: An asset which can’t be touched
physically but can be measured in value. (eg. Goodwill)
22. Rules of Double Entry System
Accounts
Personal
Real
Nominal
•
•
•
•
•
•
Rules
Debit the receiver
Credit the giver
Debit what comes in
Credit what goes out
Debit all expenses and losses
Credit all incomes and gains
23. Accounting cycle
Recording monetary transactions in a systematic manner
Journal entries
Ledger
Trial balance
Trading and Profit & Loss Account
Balance Sheet
24. Accounting Concepts
Business entity concept: The Business is distinct from the
persons who own it.
Going concern concept: It assumes that the business will
continue for a long time.
Cost concept: All the transactions will be recorded at cost in the
books. It means deducted depreciation from the assets yearly.
Dual aspect concept: Each transaction is twofold affect.
Money measurement concept: The transactions should be
recorded in monetary aspect only. We should not record the
transaction in kilograms, quintals, meters, liters, etc.
25. Accounting Concepts
Accounting period concept: Measuring the profit, incomes or
expenses of the period only are to be considered. Usually the
period is one year (12 months).
Realization concept: If the revenue is recognized too early or too
late, the company would not project the right financial position. It
would look more profitable or less profitable than what it actually
is.
Matching concept: Expenses incurred for a period are matched
with the revenues for the same period to arrive as a reasonably
correct measurement of the net income or the net loss. The
difference between revenues and expenses is a measure of how
effectively management has utilized the firm’s resources.
Objective evidence concept: All accounting transactions should be
evidenced and supported by object documents.
26. Accounting Conventions
Convention of disclosure: Accounts should be prepared
in such a way that all material information is clearly
disclosed to the users.
Convention of consistency: An accounting method or
procedure once chosen should be followed consistently
from year to year.
Convention of conservatism: Any business while
recording the transactions should ‘anticipate no profits
but provide for all possible losses’.
Convention of materiality: Only those events should be
recorded which have a significant bearing and
insignificant things should be ignored. There is no
formula for identifying material and immaterial events.
It depends on the accountant discretion.
28. Source Documents
• Cash Memo: When goods are sold or purchased for
cash, the firm receives or gives cash memos which
provide details regarding cash transactions.
• Invoice or Bill: This document is prepared when goods
are sold or purchased on credit.
• Receipt: When a firm receives cash from customers it
issues a receipt which is a proof for receiving cash.
• Pay in Slip: This is a form available from a bank for
depositing cash or cheque in a bank account.
Contd…
29. Source Documents
• Cheque: It is a document in writing drawn upon a
specified banker and payable on demand.
• Debit Notes: For the party from whom the
money is recoverable this document becomes
debit note.
• Credit Note: For the party who is to recover the
amount the document becomes credit note.
When goods returned from the customer, a
proper credit note should be sent to him.
30. Journal
• The word journal is derived from the Latin
word ‘Journ’ which means a day.
• Journal means a day book where in day-to-day
business transactions are recorded in a
chronological order.
• The process of recording a transaction in the
journal is called Journalisation.
• The entries made in the book are called
journal entries.
32. Items in Journal
• Date: The first column deals with the date of transaction.
• Particulars: In the first line write about debit aspect and
in the second line write about credit aspect. In the third
line write regarding brief explanation of the entry
(narration).
• Ledger Folio (L.F.): It denotes page number on which its
journal entry is found.
• Debit: Fourth column deals with the amount to be
debited.
• Credit: Fifth column deals with the amount to be
credited.
33. Points to be noted before journalising
• Compound journal entry
• Cash or credit transaction
• Cash discount
• Trade discount
• Purchase of shares: When shares or securities are
purchased, the entry is made at market value and not at
face value. Brokerage paid on the purchase of such
investment is also added in the amount of investment.
• Sale of shares: If shares or securities are sold, the entry
should be passed at market value less brokerage, if any,
paid on such shares.
34. Points to be noted before journalising
• Expenses incidental to the purchase of Fixed
Assets
• Insurance of Life Policy (Debited to Drawings a/c)
• Goods given as charity
• Goods distributed as free samples
• Loss of stock by Fire
• Interest due on Loans
credited to loan account)
(debited to interest account and
35. Advantages of Journal
• It provides a chronological (date wise) order of all
transactions and hence provides permanent
record.
• It provides the information of debit and credit in
an entry and an explanation to make it
understandable properly.
• It reduces the possibility of error as both aspects
of a business transaction are written side by side.
36. Ledger
• It is a book which contains various accounts. It is
in ‘T’ form.
• It is a summary statement of all the transactions
relating to a person, asset, expense or income
which have taken place during a given period of
time and shows their net effect.
• It is designed to accommodate the various
accounts maintained by a trader.
• The process of transferring the entries from the
journal into the ledger is called posting.
38. Posting of ledger
• For each item a separate new account is to be
opened.
• For each account there must be a name. This
should be written on the top of the account in
the middle.
• The debit side of the journal entry is posted to
the debit side of the account by starting with To.
• The credit side of the journal entry is posted on
the credit side of the account by starting with
By.
39. Trial Balance
• A list of balances of the ledger accounts at a point of
time is called trail balance.
• The balances of all the ledger accounts are extracted
and are written up in a statement known as Trial
Balance and finally totaled up to see if the total of
debit balances is equal to the total of credit balances.
• It is a list of ledger account titles and their respective
balances.
• As per double entry system, every debit equals to
corresponding equal credit. To prove this, statements
of debits and credits will be prepared by accountant.
This statement is called trail balance.
40. Proforma of Trial balance
Sl.No.
Name of the Account
Debit ()
Credit ()
41. Errors
• Omission of any entry in a subsidiary book.
• A wrong entry in a subsidiary book.
• Posting an item to the correct side but in the
wrong account. Purchase from X and credited to
Y.
• Compensating errors.
• Errors of principles. These errors will not affect
the agreement of the Trial Balance as they arise
from the debiting or crediting of wrong heads of
accounts.
42. Disagreement of the Trial Balance
• An item omitted to be posted from a subsidiary book into the
ledger
• Posting of wrong amount to a ledger account.
• Posting an amount to the wrong side of the ledger account.
• Wrong additions or balancing of ledger accounts.
• Wrong totaling of subsidiary books.
• An item in the subsidiary book posted twice to a ledger account.
• Balance of some accounts written to the wrong side of the Trial
Balance.
• An error in totaling the trial balance.
43. Subsidiary Books
• Cash book to record cash receipts and payments.
• Simple Cash Book: It makes a record of all the receipts
and payments of cash. All cash received in the form of
coin, notes, cheques, postal orders, bank drafts or
treasury notes will be recorded on the debit side and
payments on the credit side.
• Cash Book with Discount Column
• Cash Book with Discount and Bank Column (Three
column cash book)
44. Subsidiary Books
• Purchases book is for recording all credit purchases of goods.
• Sales book is for recording all goods sold on credit.
• Purchases returns book (returns outwards book) for recording
all purchases returned to creditors.
• Sales returns book (returns inwards book) for recording all
sales retuned by customers.
• Bills Receivable Book to keep a record of bills received from
customers.
• Bills Payable Book to keep a record of bills payable to
creditors.
• Journal proper to keep a record of those transactions for
which there is no separate book.