The document discusses the importance of accounting and provides an overview of accounting principles. It notes several major corporate accounting scandals that resulted in billions of losses and thousands of job losses. These scandals led to new regulations and oversight. The document then defines accounting as identifying, recording, and communicating economic events of an entity. It discusses the accounting process and who uses accounting information, such as internal managers and external investors and creditors. Finally, it provides an overview of accounting principles and concepts such as the basic accounting equation, types of assets and liabilities, and business entities.
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
Accounting - Lesson 1: Business and AccountingElearningpower
his Video online accounting course is
designed for those with little or no
experience in bookkeeping or accounting
and may be of interest to those looking to
review their basic knowledge of accounting.
Introduction
Needs and Role of Accounting
System of Accounting
Branches of Accounting
Objectives of Accounting
Generally Accepted Accounting principles : (Accounting Concepts and Conventions)
Documents in Accounting
Accounting Principle 6th Edition Weygandt Test BankGaybestsarae
Full download : https://alibabadownload.com/product/accounting-principle-6th-edition-weygandt-test-bank/ Accounting Principle 6th Edition Weygandt Test Bank , Accounting Principle,Weygandt,6th Edition,Test Bank
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
Accounting - Lesson 1: Business and AccountingElearningpower
his Video online accounting course is
designed for those with little or no
experience in bookkeeping or accounting
and may be of interest to those looking to
review their basic knowledge of accounting.
Introduction
Needs and Role of Accounting
System of Accounting
Branches of Accounting
Objectives of Accounting
Generally Accepted Accounting principles : (Accounting Concepts and Conventions)
Documents in Accounting
Accounting Principle 6th Edition Weygandt Test BankGaybestsarae
Full download : https://alibabadownload.com/product/accounting-principle-6th-edition-weygandt-test-bank/ Accounting Principle 6th Edition Weygandt Test Bank , Accounting Principle,Weygandt,6th Edition,Test Bank
Introduction, Accounting as an Information System, Branches of Accounting, Meaning of Financial Accounting, Users of Accounting Information- GAAPS- Basic Concepts and Conventions- Accounting Standards issued by ICAI and IFRS issued by IASB- Manual Vs Computerized Accounting.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
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Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
2. Why study accounting?
• Lehman Brothers Holdings Inc, 4th largest investment bank
in the US with 25K employees worldwide, filed for the
largest bankruptcy in US history. Lehman Brotherslargest bankruptcy in US history. Lehman Brothers
borrowed significant amounts to fund its investment in
housing related-assets, and was the largest victim of the
US subprime mortgage-induced financial crisis, which
swept the financial markets in 2008.
• Worldcom restated their inflated earnings ($3.8B) which
contributed to losses to their shareholders of $179.3B and
job losses of 17K
2
3. Why study accounting?
• Enron’s variety of schemes, which inflated profit by
$586M, led to financial restatements and bankruptcy and
caused investor losses of $66.4B and job losses of 6100caused investor losses of $66.4B and job losses of 6100
• Xerox Corp using “accounting tricks” to fool investors,
restated 5 years of earnings to reclassify more than $6B in
income
• 2Go Group Inc restated its financial statements due to
misclassification of receivables and thus overstating its
income from P1B to P330M in 2016 and P97 in 2015.
3
4. Why study accounting?
Because of these scandals, a lot of proposals have been
introduced to improve business practices and accounting
oversights from the government, regulators andoversights from the government, regulators and
professional associations. (Sarbanes- Oxley Act, Jul 2002)
What is evident from the mentioned illegal and unethical
business events?
4
5. Why study accounting?
Good accounting is essential to sound business and investing
decisions.
Bad accounting cannot be tolerated.
The recent events prove the necessity to study accounting
process and information.
5
6. What is accounting?
It is an information system that identifies, records
and communicates the economic events of anand communicates the economic events of an
entity to interested users.
It is composed of 3 activities.
6
7. 3 activities of accounting
1. Identifying – identifying economic events involves
selecting the economic activities relevant to a particular
entity.entity.
2. Recording – once identified, economic events are
recorded to provide a history of the entity’s financial
statement. It consists of keeping a systematic,
chronological diary of events, measured in monetary
denomination. We also need to classify and summarize
these economic events
7
8. 3 activities of accounting
3. Communicating – Financial information is communicated
through financial reports, most common used are called
financial statements. To make the reported financialfinancial statements. To make the reported financial
information meaningful, accountants report the recorded
data in a standardized form.
Vital element in communicating economic events is the
accountant’s ability to analyse and interpret the reported
information.
8
10. Why is accounting important?
• Accounting is the language of business.
• Its purpose is to assist users (internal/ external) to make• Its purpose is to assist users (internal/ external) to make
decisions about the allocation of scarce resources.
• It provides information to help users understand where
the entity has been by looking at its past performance,
and where it is now by looking at its current financial
position and to provide insights into what its likely future
prospects are.
• It is a means of measuring business activity to help in
making informed business decisions.
10
11. Who uses accounting data?
1. Internal Users – are managers who plan,
organize and run the business.organize and run the business.
Questions asked by internal users:
-Is cash sufficient to pay bills
-What is the cost of manufacturing each unit
-Can we afford to give employees pay rises
-Which product line is most profitable
11
12. Who uses accounting data?
2. External Uses – Investors, creditors (suppliers&
banks), governmentbanks), government
Questions asked are:
-Is the business earning satisfactory income
-How does the business compare in size and
profitability with competitors
-Will the business be able to pay its debts as they
fall due
12
13. Brief History
Luca Pacioli is the father of accounting. He is an
Italian mathematician. Close friend and tutor toItalian mathematician. Close friend and tutor to
Leonardo Da Vinci and contemporary of
Christopher Columbus.
His work is compiled in Summa de arithmetica,
geometria, proportione et proportionalite, which
described a system that ensures financial
information are recorded efficiently and
accurately
13
14. Bookkeeping VS Accounting
Bookkeeping- involves only the recording of
economic events.economic events.
Accounting – involves the 3 activities: identifying,
recording and communicating. May be further
divided into financial accounting and
management accounting.
14
15. How will the study of accounting
help you as a student?
Working of knowledge in accounting in almost every
field of endeavour.field of endeavour.
1. General management
2. Marketing
3. Finance (banker, investment analyst or stockbroker)
4. Real estate agent
5. Doctor, lawyer, a social worker, teacher,
engineer, architect, entrepreneur and etc
15
16. Short Quiz # 1
1. It is the process of identifying, recording and
summarising economic events.
2.2. Who is the father of accounting?
3. It involves the recording of economic events
4. What are the 2 groups of accounting data users
5. Give at least 3 questions asked by accounting data users.
6. Give atleast 3 reasons why accounting is important (10
points)
16
17. Generally Accepted Accounting
Principles (GAAP)
• Accountants follow accounting principles, rules and
standards in order to measure, process and communicate
financial information to the users of accounting reports.financial information to the users of accounting reports.
• Financial information should be relevant, reliable,
comparable and understandable.
• GAAP are the rules applicable in any country.
• Cost principle states that assets should be recorded at
their cost. Also known as the historical cost principle.
17
18. Generally Accepted Accounting
Principles (GAAP)
Cost – the value exchanged at the time something is
acquired.
Example:
If you house today, the cost is the amount you pay for it, say
P5million.
If you sell the house in 2 years for P5.3million, the selling
price is the market value or fair market value.
18
19. Assumptions under GAAP
1. Monetary unit assumption- requires that only
transaction data that can be expressed in terms of
money be included in the accounting records. To quantifymoney be included in the accounting records. To quantify
or measure economic events.
2. Economic entity assumption- requires that the activities
of the entity be kept separate and distinct from the
activities of its owners and all other economic activities.
19
20. Types of business entity accdg to
formation
1. Proprietorship – a business owned by one person
2. Partnership – owned by 2 or more persons associated as2. Partnership – owned by 2 or more persons associated as
partners
3. Corporation – a business organized as a separate legal
entity under the corporation law and ownership is
divided into transferable shares.
20
21. Proprietorship
• The owner is the manager of the business
• Usually are small service type of businesses like beauty• Usually are small service type of businesses like beauty
salons and repair shops
• Needs a relatively small amount of money to start
• Owner receives profits, suffers all losses and is personally
liable for all debts of the business
• No legal distinction between owner and the business
21
22. Partnerships
• A partnership agreement is set for the initial investment,
duties of each partner, division of profit or loss and
settlement upon death or withdrawal of a partnersettlement upon death or withdrawal of a partner
• Each partner generally has unlimited personal liability for
the debts of the partnership
• Are normally used to organize professional practice like
lawyers, doctors, architects and accountants
22
23. Corporations
• Shareholders enjoy limited liability for the debts of the
company
• Shareholders may transfer their ownership to other
investors any time
• Enjoys unlimited life because ownership can be
transferred without dissolution
23
24. Basic Accounting Equation
• The two basic elements are what the company owns and
what it owes.
• Assets are the resources owned or controlled by a
business.
• Liabilities & equity are the rights or claims against the
assets. Liabilities are those claims of those whom money
is owed. Equity is the claim of owners
24
25. Basic Accounting Equation
Assets = Liabilities + Equity
25
P 200million = P 80 million + P 120 million
This equation applies to all economic entities regardless of size, nature or form of business
organization.
26. Assets
• Is a resource controlled by an entity
• Are used in carrying our activities like production,• Are used in carrying our activities like production,
consumption and exchange
• Has the capacity to provide future services or benefits
• Future economic benefits eventually results to cash
inflows
• Example: Campus Pizza owns a delivery truck which gives
economic benefits by delivering pizzas.
26
27. Liabilities
• Are claims against assets
• Are the existing debts and obligations
•• Are the money borrowed by the business or the inventory purchases
on credit
• When Jollibee purchases chicken, fires, pasta on credit from
suppliers and is called accounts payable
• When Jollibee gets a loan from the BDO to purchase a delivery truck
and is called loan payable
• Jollibee may also have wage payable and taxes payable
• Creditors have the legal right to claim first against assets in case of
liquidation
27
28. Equity
• The ownership claim on total assets
• This is the remaining assets after deducting the total claim of
creditors.creditors.
• Also known as the residual equity
• Also known as Net Asset or Net Worth
28
Assets - Liabilities = Equity
We need to increase
by earning income
29. Increases in Equity
1. Investments by owner – the assets that owner puts into
the business
2. Income – increases in equity resulting from business
activities entered into for the purpose of earning profit.
29
30. Income
• Results in an increase in an asset
• Includes both revenue and gains• Includes both revenue and gains
• Revenue- arises in the normal course of the business
Common sources of revenue are sales, fees, services,
commissions, interest, dividends, royalties and rent
• Gains- arises on disposal of non-current assets and
unrealized gains on revaluing assets.
30
31. Decreases in Equity
1. Drawings – are cash or other assets withdrawn by the
owner for personal use.
2.2. Expenses – are the cost of assets consumed or services
used in the process of earning income.
31
32. Expenses
• Decreases in equity resulting from operating the business
• Are actual or expected cash outflows/ payments• Are actual or expected cash outflows/ payments
Examples are: utilities, supplies, wages, telephone,
internet, rent, delivery expense, interest expense,
licenses and depreciation
32
33. Summary of Equity movements
Equity is increased by investments and income. It is
decreased by drawings and expenses.
Profit – Revenue exceeds the expenses
Loss – Expenses exceeds the revenue
33
34. Summary of Equity movements
INCREASES DECREASES
Investments by Withdrawals
34
Investments by
owner
EQUITY
Withdrawals
by owner
Revenue Expenses