fields and assets

private accountng

to assist management in planning and controling business enterprise

public accounting

consists of individual practitioners, etc.

public accounting

render independent & expert financial services

financial accounting

recoding of transactions for business enterprise

budgetary accounting

plans of operation for a period and through reports & summaries

cost accounting

determination and the control of cost

tax accounting

preparation of returning tax

internal auditing

operational efficiency of the company

payroll accounting

preparation of payroll

includes computation of employees compensation

government accounting

focuses on government funds

external auditing

independent review and examination of the accounting records

socio-economic accounting

measures social costs

international accounting

associates with international trade

tax services

income tax

tax assessment

business and trade tax

management advisroy services

conflicts that confront the enterprise manager

l + c = a

balance sheet

r - e = net income (loss)

income statement

initial (starting) capital - owners drawing +(-) net income = present owners equity

capital statement

owners, management, government agency, customers, creditors, others

users of accounting information

going concern, accural concepts

primary assumptions

time period, accounting entity, monetary unit

unconditional assumptions

accural conecepts

difference between revenue and expense

going concern

assets are recorded at the historical cost and not at their disposal value

going concern

fluctuations in markets can be ignored

going concern

owners doesn’t want to stop their business

accounting entity

business enterprise as a separate entity from the person

monetary unit

assumptions on quantifiable and peso stability

time period

calendar year, fiscal year, interim period

assets

resources controlled by the entity

from future economic benefits

current assets

consumable in short period of time

non current assets

residual definition / permanent in nature

tangible assets

physical substance

non tangible assets

no physical substance

liabilities

present obiligations of the entity arising from past events

outflow

long term liabilities

payble beyond one year

current liabilities

payable in short time

real accounts

balance sheet

nominal accounts

income statement

equity

interets after deducting all of its liabilities

revenue

inflow of financial resources

revenue

increases owners equity

expense

outflow of financial resources

expense

decreases owners equity

net income

total revenue exceeds total expense

net loss

expense exceeds revenue is a result of —