BASIC
ACCOUNTING
DEFINITION OF

ACCOUNTING
Accounting is a process :


Identify



Recorded and classify



Summarize



Report



Interpret
Management
finance
Finance definition
 Process

to ensure so that

accepted financial resource and
spent with way the best in order
to meet ...
Interst :
i. Ensure corporate goals
achievable
 objective maximize
shareholder wealth,
maximize profit & minimize
cost.
ii. Achieve the financial objective


Manage fixed asset and current asset
nicely



Ensure cash flow can
fill vision an...
iii. Financial resources
usable with best
possible.
 Control financial
resource flow and business
spending nicely.
iv.Find
alternative investment which
promises return that high and
reduce loss risk.
 Get investment return
rate and prof...
v. Accelerate turnover.
Having fair
opportunity to
accelerate business
working capital
Category
asset, liability,

owner's equity,
cost and result
Asset management :
Finance department in firm with role manage
assets that possessed byfirm.
 Asset purchase involves
pro...
Liability management :
Manage liability in business.
For example such as manage liability on:
shareholder – distribute pr...
Long-term liability – repayment

period > 1 years.
Example :(company

capital structure policy)
How long something liab...
Owner equity management:
Get source of fund – through

loans from financial
institutions with interest
cost that minimum
...
 Capital

management fall
into two namely:
a. Capital financing –
loan long-term
b. Equity financing – stock,
premium
cap...
Expenditure :
Expenditure

is all
cost which involved in
business for example
worker's salary, rate of
payment, rent, ins...
Revenue management :


Profit is return that achieved company
investment income supply
something accounting period.



H...
How many that profit want

to be invested again.
Profit management
efficiency ensure company
survival.
To maximize shar...
functions
and result :
= income statement
= key count – count
=cash flow
Income statement :
 Items

that included was the
result or income to businesses and
expenditure which involved to
get rev...
Key counts :
Are

prepared for see a
business financial position
at one – a date.
In it listed balance – asset
balance, ...
Cash flow statement :
 Report

cash receipt, payment,
cash and internal change cash a
result of activity – operational
ac...
Reference;






http://www.docstoc.com/docs/15082904/PE
NGURUSAN-PERAKAUNAN
http://www.scribd.com/doc/42938693/DEFI
...
Thanks..
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Chapter 6

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Chapter 6

  1. 1. BASIC ACCOUNTING
  2. 2. DEFINITION OF ACCOUNTING
  3. 3. Accounting is a process :  Identify  Recorded and classify  Summarize  Report  Interpret
  4. 4. Management finance
  5. 5. Finance definition  Process to ensure so that accepted financial resource and spent with way the best in order to meet organisational objective.
  6. 6. Interst : i. Ensure corporate goals achievable  objective maximize shareholder wealth, maximize profit & minimize cost.
  7. 7. ii. Achieve the financial objective  Manage fixed asset and current asset nicely  Ensure cash flow can fill vision and corporate goals  Planning finance according to company fund suitability  Planning cost
  8. 8. iii. Financial resources usable with best possible.  Control financial resource flow and business spending nicely.
  9. 9. iv.Find alternative investment which promises return that high and reduce loss risk.  Get investment return rate and profit that overtop some thing investment which made.
  10. 10. v. Accelerate turnover. Having fair opportunity to accelerate business working capital
  11. 11. Category asset, liability, owner's equity, cost and result
  12. 12. Asset management : Finance department in firm with role manage assets that possessed byfirm.  Asset purchase involves process and further until asset written off.  Firm assets consisting of fixed asset and current asset.  Example : Fixed Asset – land, building, and other. Current Asset – Cash, stock, and other 
  13. 13. Liability management : Manage liability in business. For example such as manage liability on: shareholder – distribute profit bank – loan payment supplier – explain credit buying Current liability – repayment period < 1 years. Example : working capital management
  14. 14. Long-term liability – repayment period > 1 years. Example :(company capital structure policy) How long something liability should be held. How many something liability that wish to be held. Management efficiency
  15. 15. Owner equity management: Get source of fund – through loans from financial institutions with interest cost that minimum Identify type of investment that wish to be invested. Identify how many rate of return that desired.
  16. 16.  Capital management fall into two namely: a. Capital financing – loan long-term b. Equity financing – stock, premium capital and income hold up.
  17. 17. Expenditure : Expenditure is all cost which involved in business for example worker's salary, rate of payment, rent, insurance a nd so on.
  18. 18. Revenue management :  Profit is return that achieved company investment income supply something accounting period.  How many dividend that want given to shareholder.  Profit that there is has to be distributed
  19. 19. How many that profit want to be invested again. Profit management efficiency ensure company survival. To maximize shareholder wealth.
  20. 20. functions and result : = income statement = key count – count =cash flow
  21. 21. Income statement :  Items that included was the result or income to businesses and expenditure which involved to get revenue on.  Purpose: to report success or profit ability in company business operationor firm in one – an accounting period
  22. 22. Key counts : Are prepared for see a business financial position at one – a date. In it listed balance – asset balance, liability, and owner's equity.
  23. 23. Cash flow statement :  Report cash receipt, payment, cash and internal change cash a result of activity – operational activity, investment and financing something organization for the period according to particular format that can coordinate early balance and cash end.
  24. 24. Reference;      http://www.docstoc.com/docs/15082904/PE NGURUSAN-PERAKAUNAN http://www.scribd.com/doc/42938693/DEFI NISI-PERAKAUNAN http://www.scribd.com/doc/8720709/Bab1-Pen-Gen-Alan-Kepada-Perakaunan http://mhdazlan.files.wordpress.com/2010/ 02/modul-format-penyata-kewangan.pdf BUKU RUJUKAN PRINSIP PERAKAUNAN
  25. 25. Thanks..

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