User:Jukeboksi/BBA studies/Accounting: Difference between revisions
tweaking, fix order of lessons
(Definition of Accounting inserted as a quote attributed to wikipedia) |
(tweaking, fix order of lessons) |
||
| Line 3: | Line 3: | ||
{{Q|'''[[w:Accounting|Accounting]]''' ( verb ) or '''accountancy''' ( noun ) is the process of communicating [[w:financial information|financial information]] about a [[w:business entity]] to users such as [[w:shareholders|shareholders]] and [[w:manager|manager]]s.|Wikipedia|[[w:accounting|accounting]]}} | {{Q|'''[[w:Accounting|Accounting]]''' ( verb ) or '''accountancy''' ( noun ) is the process of communicating [[w:financial information|financial information]] about a [[w:business entity]] to users such as [[w:shareholders|shareholders]] and [[w:manager|manager]]s.|Wikipedia|[[w:accounting|accounting]]}} | ||
== Definition of accounting and accountacy == | |||
::'''[[w:Accounting|Accounting]]''' ( verb ) or '''accountancy''' ( noun ) is the process of communicating [[w:financial information|financial information]] about a [[w:business entity]] to users such as [[w:shareholders|shareholders]] and [[w:manager|manager]]s. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of [[w:management|management]]; the art lies in selecting the information that is relevant to the user and is reliable. | ::'''[[w:Accounting|Accounting]]''' ( verb ) or '''accountancy''' ( noun ) is the process of communicating [[w:financial information|financial information]] about a [[w:business entity]] to users such as [[w:shareholders|shareholders]] and [[w:manager|manager]]s. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of [[w:management|management]]; the art lies in selecting the information that is relevant to the user and is reliable. | ||
| Line 12: | Line 10: | ||
::#'''[[w:bookkeeping|bookkeeping]]''' ( [[w:fi:kirjanpito]] ) and | ::#'''[[w:bookkeeping|bookkeeping]]''' ( [[w:fi:kirjanpito]] ) and | ||
::#'''[[w:auditing|auditing]]''' ( [[w:fi:auditointi]], mahd. [[w:fi:tilintarkastus]] ). ( Wikipedia ) | ::#'''[[w:auditing|auditing]]''' ( [[w:fi:auditointi]], mahd. [[w:fi:tilintarkastus]] ). ( Wikipedia ) | ||
== Accounting for a New Business 1 == | |||
=== Terminology === | === Terminology === | ||
| Line 63: | Line 64: | ||
In [[w:financial accounting]], a '''[[w:balance sheet]]''' or '''statement of financial position''' is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. '''[[w:Asset]]s, [[w:liability (financial accounting)|liabilities]]''' and '''[[w:ownership equity]]''' are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic [[w:financial statements]], the balance sheet is the only statement which | In [[w:financial accounting]], a '''[[w:balance sheet]]''' or '''statement of financial position''' is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. '''[[w:Asset]]s, [[w:liability (financial accounting)|liabilities]]''' and '''[[w:ownership equity]]''' are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic [[w:financial statements]], the balance sheet is the only statement which app | ||
=== Accounting classes === | |||
==== Accounting class week 7 ==== | |||
:* '''[[w:Financial accountancy]]''' (or '''financial accounting''') is the field of [[w:accountancy]] concerned with the preparation of [[w:financial statements]] for decision makers, such as [[w:Shareholder|stockholder]]s, [[w:vendor (supply chain)|supplier]]s, [[w:bank]]s, employees, [[w:government agencies]], owners, and other stakeholders. Financial capital maintenance can be measured in either [[w:nominal monetary units]] or [[w:units of constant purchasing power]]. ( Wikipedia ) | |||
:* '''Management accounting''' or '''[[w:managerial accounting]]''' is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. ( Wikipedia ) | |||
:* '''[[w:Income statement]]''' (also referred to as '''profit and loss statement (P&L)''', '''revenue statement''', '''statement of financial performance''', '''earnings statement''', '''operating statement''' or '''statement of operations)'''is a company's '''[[w:financial statement]]''' that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). ( Wikipedia ) | |||
:* A '''[[w:Balance sheet]]''' or '''statement of financial position''' ( in [[w:financial accounting]] ) is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. [[w:Asset]]s, [[w:liability (financial accounting)|liabilities]] and [[w:ownership equity]] are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a ''"snapshot of a company's financial condition"''. ( Wikipedia ) | |||
::: '''Balance sheet terms''' | |||
:::::* '''[[w:Asset]]s == [[w:current assets]] + [[w:non-current assets]]''' | |||
:::::::A '''[[w:current asset]]''' is an [[w:asset]] which can either be converted to cash or used to pay current liabilities within 12 months. Typical current assets include [[w:cash]], [[w:cash equivalents]], short-term investments, [[w:accounts receivable]], [[w:inventory]] and the portion of prepaid liabilities which will be paid within a year. ( Wikipedia ) | |||
:::::* '''[[w:Liability|Liabilities]] == [[w:Current liabilities]] + [[w:non-current liabilities]]''' | |||
:* '''[[w:Double-entry accounting]]''' ( or '''double-entry [[w:bookkeeping]] system''' ) is a set of rules for recording financial information in a [[w:financial accounting]] system in which <u>'''''every transaction'''''</u> or event <u>'''''changes at least two'''''</u> different nominal [[w:ledger]] <u>'''''accounts'''''</u>. | |||
---- | |||
==== Accounting class week 9 ==== | |||
:* Team quiz on new terminology ( [[w:Category:Accounting terminology]] ) | |||
:* '''[[w:Assets]]''' | |||
:* '''[[w:Liabilities]]''' | |||
:* '''[[w:Equity (finance)]]''' | |||
---- | |||
==== Accounting class week 10 ==== | |||
:*'''[[w:Accrual]]''' (''accumulation'') of something is, in [[w:finance]], the adding together of [[w:interest]] or different [[w:investments]] over a period of time. It holds specific meanings in [[w:accounting]], where it can refer to accounts on a [[w:balance sheet]] that represent liabilities and non-cash-based assets used in accrual-based accounting. These types of accounts include, among others, [[w:accounts payable]], [[w:accounts receivable]], [[w:Goodwill (accounting)|goodwill]], [[w:deferred tax]] [[w:liability (accounting)|liability]] and future interest expense. ( Wikipedia ) | |||
---- | |||
==== Accounting class week 11 ==== | |||
* '''[[w:VAT]] accounting''' | |||
* [[w:VAT]] vs. [[w:sales tax]] ( not the same thing ) | |||
* '''[[w:Accrual]]''' | |||
:::'''Accrual''' (''accumulation'') of something is, in [[w:finance]], the adding together of [[w:interest]] or different [[w:investments]] over a period of time. It holds specific meanings in [[w:accounting]], where it can refer to accounts on a [[w:balance sheet]] that represent liabilities and non-cash-based assets used in accrual-based accounting. These types of accounts include, among others, [[w:accounts payable]], [[w:accounts receivable]], [[w:Goodwill (accounting)|goodwill]], [[w:deferred tax]] [[w:liability (accounting)|liability]] and future interest expense. ( Wikipedia ) | |||
---- | |||
==== Accounting class week 12 ==== | |||
:Joint exam with [[#Business Math 1|Business Math 1]] | |||
lies to a single point in time of a business' calendar year. ( Wikipedia ) | |||
---- | ---- | ||
| Line 117: | Line 168: | ||
==== Accounting 2 class week 18 ==== | ==== Accounting 2 class week 18 ==== | ||
---- | ---- | ||
| Line 126: | Line 175: | ||
---- | ---- | ||
=== Further learning === | === Further learning === | ||