Lets learn Accounting !
steemiteducation·@zouxx·
0.000 HBDLets learn Accounting !
Hello guys !</br> How are you , and how about Physics guys . Physics is interesting right . As long as I am having my final exam for account paper on this Friday I want to focus about Account first . No need to worry guys I will write about Physics when this exam finished . Stay tune with me okay . <center></center> <center>[Accounting](https://goo.gl/images/6F3Eyt)</center> I am summarizing a chapter that need me to memorize it . And I think it's better if I write it on Steemit as my additional notes because this is must be an interesting way to fight my laziness to read my notes. ____ # What Is Account ? * Is a system or activities of recording and summarizing business and financial transaction and reporting the result . # What Is Account Basic Activities ? * Identifying economic event- purchasing asset , selling or buying * Recording economic activities - Classify and summarize and it also called as *Bookeeping* . * Communicate information of the economic event to users - Prepare the Financial Statement **For Your Information Accounting Including 3 Of Them Indentifying,Recording and Communicate .Meanwhile , Bookkeeping is Only Recording The Economics Event** # Aim Of The Financial Reporting * To provide financial info that presented in Financial Statement to the external and internal users . # Who is external and internal users ? Internal Users: * Owner * Employees * Internal Auditor External Users: * Investor * Government * Supplier # Qualitative characteristic of accounting information * We are able to make correct decision and it should has specific characteristic First of all is , * Relevance - information that can influance us to make a decision * Faithful Representation - information that reflect the business entities and it must be free from error * Compardibility - Can be compare with the year before with same industry business entity * Verifiability - It must be verified although with any different resource it still provide similar information * Timeliness - It based on due dates / reported timely * Understandibality -- Accounting Information must be able to understand by the users and also need to include additional details # The building block of accounting * An accountant must follow certain standard of accounting * Ethical behavior must be in place to ensure the standard work # Ethics In Accounting * System of moral principles * Branch of philosophy * Define what is good for society and individual * The standard conduct by one's action are judge as right or wrong , honest or dishonest and fair or not fair ***Efective financial report dependa on ethical behavior*** # What is GAAP * GAAP is stand for Generally Accepted Accounting Principle it's common set of standard that develope by accounting profession to indicate how to report the economic events * In Malaysia accounting standard body that responsible to issue standard is called Malaysia Financial Reporting Standard . # Measurement Principles * Historical Cost Principle - Asset and liability measurement should be hand on actual price * Objectivity Principles - Transaction must be recorded based on evidence or source document and trancsaction can be verified * Full Disclosure Principles - Business entities mus disclose all info in the Financial Statement to enable user to make right decision . * Revenue and Expense -Revenue should be recognized when earn and expanse should recognized when incur. # Assumption * Monetary Unit Assumption - We only record transaction that can be measured in term of money . * Going Concern - States that the business will continue in operation and has indefinite life * Accrual Accounting - Transaction must be recognized when they in * Neutrality - Accounting information must be free from biasness and it must reflect the picture of the entity * Materiality - It will be material if it can affected the users decision of the Financial Statement * Consistency - Business entity must use similar accounting treatment for the following year * Periodicity - Financial Statement should be present at least anually * Economic Entity - Owner and the business are two different entities . Accountant only record the business transaction and not the owner transaction except when the intoduce capital and owner withdraws asset for personal using . ____ So thats all for today , I hope you enjoy to read this content and wish me luck for my account paper on this Friday . Thanks ! ____ # <center>I hope you 'll find this useful. Upvote, Follow, Resteem. @zouxx</center> # <center></center> <center></center>