Professional Documents
Culture Documents
is the system of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account (ledger) to which debit and credit entries (recognizing transactions) are chronologically posted to record changes in value .
Information: is the result of processing, manipulating and organizing data in a way that adds to the
knowledge of the person receiving it. Data: (Ground) is the evidence , fact, data, and information that are the reason for the claim in the first place.
What is Information :
Facts, data, or instructions in any medium or form. The meaning that a human assigns to data by means of the known conventions used in their representation
Organization
1. Sole Information: One Person is Responsible for all and the investment is making by him. 2. Partnership : any kind of business making by each other ( Min 2 Max 20 ) 3. Corporation : Banking Business ( Min 2 Max 10)
Ltd (7---&)
Profit form corporation to member is called dividend > Profit $10 $5 div $1000 $100 div LLC : (Limited liabilities corporation)
Data Financial
Information
Internal users
Manager , CEO , Director
External users
Customers, supplier , investor , bank ,
Data Financial : bits of knowledge or facts that have not been summarized or categorized in a manner useful to a decision maker. Economic Activities : The production and distribution of goods and services at all levels.
Economic activity and expected future levels of it have an important influence on security prices because of the interrelationship between economic activity and corporate profits, inflation, interest rates, and other variables.
Business Transaction: Economic activity or event that initiates the accounting process of
recording it in the firm's accounting system. Or If there is dealing between two or more person for some monitoring consideration is called business Transaction.
Types of Accounting
1. 2. 3. 4. 5.
Financial Accounting- Recording Classifying Summarizing Making Reports Communication Managerial Accounting- Provide information to the internal users (internal decision making) Tax Accounting- The field of accounting that includes preparing tax returns and planning future transactions to minimize the amount of tax Government Accounting- keep accounting system Public Accounting- consultation for governor
Financial Reports : financial reports included financial statement ( Balance Sheet) ( Income statement) ( Cash Flow) 1- Balance Sheet : Balance sheet shows the financial position of corporation at specific date. 2- Income Statement : Income statement shows the operation results or it is a statement which include revenue, and expenses. ( Total receipt against sales or services) In come statement depicts the revenue and expenses for designated period of time. Expense : 3- Statement of cash flows : shows the change in cash position . Cash inflow
Cash outflow
Cash inflow : show the positive cash flow. Cash outflow : show the negative cash flow. Net Income : (net loss) is simply the deference between revenue and expense Business Entity : Business entity separated from the personal affairs of its owners.