Austin Community College. Examples Financial accounting math concepts.
Austin Journal of Accounting, Audit and Finance Management
-
Upload
austin-publishing-group -
Category
Economy & Finance
-
view
21 -
download
0
Transcript of Austin Journal of Accounting, Audit and Finance Management
![Page 1: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/1.jpg)
![Page 2: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/2.jpg)
ACCOUNTING?
Accounting is a language of business. The affairs and the results of the business are communicated to others through accounting information, which has to be systematically recorded and presented
![Page 3: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/3.jpg)
Help you prepare a budget and keep on target.
Realize how much cash you have and if there is enough to pay bills.
Uncover places where costs can be cut.
HOW ACCOUNTING HELPS YOU?
![Page 4: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/4.jpg)
TYPES OF ACCOUNTING
Financial accountingManagerial accounting
![Page 5: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/5.jpg)
Branch of accounting associated with preparing reports for external users
i.e. the bank, shareholders
FINANCIAL ACCOUNTING
![Page 6: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/6.jpg)
Accounting to guide management in making decisions about the business
i.e. break even analysis
MANAGERIAL ACCOUNTING
![Page 7: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/7.jpg)
CLASSIFICATION OF ACCOUNTS
ACCOUNTS
PERSONALACCOUNTS
IMPERSONALACCOUNTS
REALACCOUNTS
NOMINALACCOUNTS
![Page 8: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/8.jpg)
Accounts in the name of persons are known as personal accounts.
Eg: Babu A/C,
Babu & Co. A/C,
Outstanding Salaries A/C, etc.
PERSONAL ACCOUNTS
![Page 9: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/9.jpg)
These are accounts of assets or properties. Assets may be tangible or intangible. Real accounts are impersonal which are tangible or intangible in nature.
Eg:- Cash a/c, Building a/c, etc are Real Accounts related to things which we can feel, see and touch.
Goodwill a/c, Patent a/c, etc Real Accounts which are of intangible in nature.
REAL ACCOUNTS
![Page 10: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/10.jpg)
These accounts are impersonal, but invisible and intangible. Nominal accounts are related to those things which we can feel, but can not see and touch. All “expenses and losses” and all “incomes and gains” fall in this category.
Eg:- Salaries A/C, Rent A/C, Wages A/C, Interest Received A/C, Commission Received A/C, Discount A/C, etc.
NOMINAL ACCOUNTS
![Page 11: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/11.jpg)
The Balance SheetThe Income StatementStatement of Cash Flows
FINANCIAL STATEMENTS
![Page 12: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/12.jpg)
The balance sheet is an accountant’s snapshot of the firm’s accounting value on a particular date, as though the firm stood momentary still.
The balance sheet states what the firm owns and how it is financed.
Assets Liabilities + Stockholders’ equity
THE BALANCE SHEET
![Page 13: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/13.jpg)
The income statement measures performance over a specific period of time, say, a year.
The accounting definition of income is: Revenue – Expenses is Income
THE INCOME STATEMENT
![Page 14: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/14.jpg)
14
STATEMENT OF CASH FLOWS
Sources of Funds
Assets
Liabilities and Stockholders’ Equity
Uses of Funds
Assets
Liabilities and Stockholders’ Equity
![Page 15: Austin Journal of Accounting, Audit and Finance Management](https://reader035.fdocuments.us/reader035/viewer/2022070600/58e4ddff1a28abf5048b65b5/html5/thumbnails/15.jpg)