ACCOUNTING
Accounting: <ul><li>Keeping financial records,recording income and expenditure,valuing assets and liabilities,and so on </...
What are assets? <ul><li>Things that make you money; Assets include current assets like: cash in bank, savings, inventory,...
What are fixed assets? <ul><li>Fixed assets are the more expensive, usually tangible items that you purchase for your busi...
What are liabilities? <ul><li>Liabilities are: the bills that you owe, any loans and credit cards for your business. </li>...
Historical cost: <ul><li>An accounting principle requiring all financial statement items to be based on original cost. </l...
Auditing: <ul><li>Inspection and evaluation of accounts by a second set of accountants </li></ul>
What are the three basic financial statements that you need to understand to run your business?   <ul><li>The first of the...
What is an Income Statement? <ul><li>Income statement is a snapshot of your business activity at a current point in time  ...
What is the cash flow statement?   <ul><li>The cash flow statement is   the third financial form that you should prepare o...
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time...
The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity
Upcoming SlideShare
Loading in …5
×

Accounting And Financial Statements

847 views

Published on

by Tatiana Melniceco, ASEM, February 2010

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
847
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Accounting And Financial Statements

  1. 1. ACCOUNTING
  2. 2. Accounting: <ul><li>Keeping financial records,recording income and expenditure,valuing assets and liabilities,and so on </li></ul>
  3. 3. What are assets? <ul><li>Things that make you money; Assets include current assets like: cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets. </li></ul>
  4. 4. What are fixed assets? <ul><li>Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.) </li></ul>
  5. 5. What are liabilities? <ul><li>Liabilities are: the bills that you owe, any loans and credit cards for your business. </li></ul>
  6. 6. Historical cost: <ul><li>An accounting principle requiring all financial statement items to be based on original cost. </li></ul>
  7. 7. Auditing: <ul><li>Inspection and evaluation of accounts by a second set of accountants </li></ul>
  8. 8. What are the three basic financial statements that you need to understand to run your business? <ul><li>The first of these forms is the Balance Sheet. It is a comparison of your assets (things that make you money) on the left, and liabilities (things that you owe) and equity (the net worth of your business). </li></ul>
  9. 9. What is an Income Statement? <ul><li>Income statement is a snapshot of your business activity at a current point in time </li></ul>
  10. 10. What is the cash flow statement? <ul><li>The cash flow statement is the third financial form that you should prepare on a regular basis, at least weekly. </li></ul>
  11. 11. A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
  12. 12. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity

×