Accounting 101 Terminologies

Accounting

101 Terminologies

The language used in all businesses.

Sunway College Ipoh

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ACCOUNTING is the

language used in all businesses.

Quick Quiz

Ready?

Poll

Are you a boy or a girl?

Poll

You prefer Coca Cola or Pepsi Cola?

Multiple Select

Receivers of financial information includes....

• owners

• workers

• creditors

• government

• investors

STAKEHOLDERS

any people or groups who are positively or negatively impacted by a project, initiative, policy or organisation

they could be internal (people within an organisation) or external (people outside of an organisation).

Poll

You prefer to have a Toyota or Honda?

Multiple Choice

ACCOUNTING is the language used in expression financial results and financial condition of an organisation, based on the books of records that consist of all recorded business transactions being carried out.

Fill in the Blanks

While language is governed by grammar.

Accounting is governed by _{_______________ _______________}. (2 words)

accounting rules

accounting standards

International Financial Reporting Standards (IFRS)

International Accounting Standards (IAS)

IFRS - Home

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Let's have a break...

Coffee... Tea... Cham... Milo...

:P

Quick Quiz

Ready?

Multiple Choice

Which is.... milk cow ?

Multiple Choice

Which is.... palm oil ?

Multiple Choice

The THREE core Financial Statements.

• trial balance, income statement, balance sheet

• income statement, balance sheet, cash flows statement

• cash statement, financial statement, trial balance

Multiple Choice

The Accounting Equation ?

• Assets = Liabilities + Equity

• Equity = Assets + Liabilities

• Liabilities = Assets + Equity

Multiple Choice

Revenues - Expenses = ???

• Net expenses

• Net Income

• Net revenues

Multiple Choice

Net Income in the income statement can be either a Profit or Loss.

Multiple Choice

Cash flows statement shows where the cash goes...

Multiple Choice

Cash determines the survival of organisations.

Would CASH always equals to PROFITS ?

Let's have a break...

_{look at something green for 2 minutes}

Branches of Accounting

How many are there?

Financial Accounting

Cost Accounting

Management Accounting

_{Other Branches of Accounting}

Tax Accounting

~~~

Auditing

Forensic Accounting

~~~

Fund Accounting

Social Accounting

Fiduciary Accounting

Government Accounting

Taxation

Tax Accounting

Tax

A tax is a compulsory financial charge or a type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Tax is the revenue stream to the government.

A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

Tax Accounting

Tax accountants determine tax strategies to minimise or eliminate tax payments, and arrange audits with taxation authorities.

Aside preparing tax documents, tax accountants interpret tax laws and explain the implications of any recent changes in the law.

Tax accountants prepare tax documents for a clientele including the public and private companies, non profit organisations, government agencies, and private individuals.

Types of Taxes

• Corporate Tax

• Withholding Tax

• Payroll Tax

• Stamp Duty

• Sales & Service Tax

• Real Property Gains Tax

Let's take a break...

stretch up...

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Assessment Time

Quick check on what you learned.

Fill in the Blanks

The financial statement that is described as a "snapshot" of a company’s financial position is the

sheet.

AELBCNA

Fill in the Blanks

The

basis of accounting reports expenses when incurred, not when paid.

ACUCLAR

Fill in the Blanks

Assets = Liabilities + Owner’s Equity is known as the basic accounting

.

UETOIANQ

Fill in the Blanks

Land is an asset that is not

.

ETDPDRCAEIE

Fill in the Blanks

These accounts will normally have debit balances.

TSESAS

Fill in the Blanks

These accounts will normally have a credit balance.

IELATISILIB

Fill in the Blanks

The book of original entry.

AUJLNOR

Fill in the Blanks

The statement of cash flows reports amounts according to three activities:

, investing and financing.

NOAEGTPIR

Fill in the Blanks

A credit entry will cause the CASH account balance to

.

EEESRADC

Fill in the Blanks

will cause a company's Owner’s Equity to increase.

EEERSUVN

Fill in the Blanks

When a company purchases goods from a supplier on credit the company will credit Accounts

.

YEPBAAL

Fill in the Blanks

These will reduce owners' equity.

NXSEEEPS

Fill in the Blanks

One to whom money is owed.

ODCIERRT

Fill in the Blanks

Debits are entered on the

side of a T-account.

 FETL

Multiple Choice

_________ is a company's distribution (payments) of profits to shareholders.

• Capitals

• Dividends

• Interests

Multiple Choice

Manufactured products that are fully completed and available for sale.

• raw materials

• work in progress

• finished goods

Multiple Choice

Revenue, expenses and net income or net loss are shown on _____________ .

• income statement

• balance sheet

• cash flow statement

Multiple Choice

A customer who owes you money.

• payable

• receivable

• liquidator

Multiple Choice

Deduction from the invoice - amount allowed for early payment.

• bulk discount

• cash discount

Multiple Choice

Worksheets are used to summarize all the information necessary to complete the end-of-period financial reports and prepare other financial analysis.

• Yes

• No

Multiple Choice

________ is used to make sure the books are in balance - total debits and credits are equal.

• balance sheet

• income statement

• trial balance

Multiple Choice

Total profit or loss from the start of the business to the present not paid out to owners.

• capital

• retained earnings

• drawings

Multiple Choice

An account which offsets and reduces the balance of another account.

• bank account

• contra account

• drawings account

Thank you

Hope to see you again.