Topic 1
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The document defines accounting as identifying, measuring, recording, and communicating economic activities of an organization. It discusses the purposes of accounting as providing useful information to assist in decision making and performance evaluation. The document also outlines the types of business organizations, characteristics of qualitative accounting information such as timeliness and relevance, and users of accounting information such as managers, investors, and creditors.
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Topic 1 – Part 2 The Accounting Areas And Professional Bodies
The accounting concepts/conventions/principles applied are:
- Entity concept - Accounts are prepared separately for Farhan's small business and not combined with his personal affairs.
- Going concern concept - The accounts are prepared on the assumption that the business will continue operating in the foreseeable future.
- Accrual basis of accounting - Revenues and expenses are recognized in the period earned/incurred rather than when cash is received/paid out.
- Matching principle - Expenses are matched against the revenues of the period to determine the profit of RM25,000 for the period.
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The accounting concepts/conventions/principles applied are:
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Topic 11(short)
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Topic 10
The document summarizes the key concepts and steps involved in preparing budgets for a merchandising firm. It discusses preparing a master budget including operational budgets like sales, purchases, expenses and cash budgets as well as a financial budget. Specific examples are provided to illustrate how to prepare budgets for estimated sales, purchases, cash collections and payments, expenses and the income statement.
Topic 10(short)
This document provides an overview of budgeting and the budgeting process for a merchandising firm. It discusses:
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2) How to prepare a master budget including operational budgets for sales, purchases, expenses and an income statement as well as financial budgets for cash and the balance sheet.
3) Examples of budgets prepared for a sample merchandising firm, including sales, purchases, expenses, cash collections and payments, and income statement budgets.
Topic 9
This document provides an overview of cost-volume-profit (CVP) analysis, which is used to study the effects of changes in costs and volume on profits. It discusses key CVP concepts like fixed and variable costs, contribution margin, break-even point, and how to calculate these using different techniques. The techniques covered are the contribution margin approach, mathematical equations, and graphical analysis. It also explores how CVP analysis can be applied to evaluate things like the impact of changes in selling price, costs, production volume, and for profit forecasting.
Topic 9 (short)
This document provides an overview of cost-volume-profit (CVP) analysis, including key concepts like contribution margin, break-even point, and target income. It discusses how to calculate break-even point and target income using the contribution margin approach and mathematical equations. It also explains how CVP analysis can be applied to determine the impact of changes in selling price, variable costs, fixed costs, and margin of safety.
Topic 8
This document summarizes key concepts from Chapter Eight of a management accounting textbook, including:
1) The differences between managerial and financial accounting in terms of users, reports, purpose, and verification.
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3) Cost concepts including classification of costs by behavior, function, and period.
4) Preparing financial statements for manufacturing companies including statements of cost of goods manufactured and income.
Topic 8 (short)
The document describes key concepts in managerial and financial accounting. It defines the differences between managerial and financial accounting in terms of users, reports, purpose, and verification. It also defines cost concepts like direct/indirect costs, fixed/variable costs, product costs, and period costs. Finally, it illustrates how to prepare key accounting statements for a manufacturing business, including the statement of cost of goods manufactured, income statement, and balance sheet.
Topic 7
This document summarizes different types of financial statement analysis including percentage analysis, ratio analysis, and common ratios used. It discusses horizontal and vertical analysis for percentage analysis. For ratio analysis, it covers liquidity ratios like current and acid-test ratios, profitability ratios like profit margin and return on equity, efficiency ratios like inventory turnover, and solvency ratios like debt ratio. Examples are provided for calculations and analysis of each type of ratio.
Topic 6
This document summarizes the contents of a company's annual report, including regulatory requirements they must comply with, non-financial information disclosed, and key financial information provided. The regulatory requirements section lists acts and organizations like the Companies Act 1965, Income Tax Act 1967, Financial Reporting Act 1997, Kuala Lumpur Stock Exchange, and Bank Negara that companies must follow. Non-financial information disclosed includes notices for shareholder meetings, corporate details, and statements from audit committee heads. The financial information section outlines reports, accounts, cash flows, notes, and statements that provide the company's financial position.
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Topic 1
- 1. CHAPTER 1: ACCOUNTING ENVIRONMENT KAL1013 BBA EXEC.(T.HAJI)
- 5. Accounting: Definition KAL1013 BBA EXEC.(T.HAJI) Measuring Identifying Recording Reporting Interpreting Analyzing Bookeeping Designing Information Provide useful information to users
- 7. Fields in Accounting KAL1013 BBA EXEC.(T.HAJI) Accounting Financial Accounting Management Accounting Auditing Tax Public Sector Accounting And Non-Profit Organisation Accounting Information System
- 8. Accounting Professional Bodies KAL1013 BBA EXEC.(T.HAJI) MICPA MIA MASB FRF Malaysia
- 12. Difference between businesses KAL1013 BBA EXEC.(T.HAJI) Sole Proprietor Partnership Public Company Management Owner Partners BOD Liability Unlimited Unlimited Limited Profit Unlimited According to agreement Dividend on shares. Tax Owner’s income tax Partners’ income tax Tax based on the profit of the co. Regulation None Agreement, Partnership Act 1961. Companies Act 1965, MA, AA
- 14. Users of Accounting Information KAL1013 BBA EXEC.(T.HAJI) Users Internal External Managers Direct Interest Indirect Interest Investors Potential Investors Creditors Regulatory Agencies Inland Revenue Dept. Customers
- 15. Thank You KAL1013 BBA EXEC.(T.HAJI)