tailieunhanh - EasyPC Training Accounting Basics

Stereotypical accountants – depicted tirelessly in literature and cinema – hunch lifelessly over their desks adding and subtracting endless columns of numbers. It is a dismal job held by nameless, glassy-eyed hordes. While these fictional portrayals were never accurate, the focus on numbers carries more than a grain of truth. Traditionally, accountants kept the books and assured that statutory requirements were met. Even as the role became more complex with innovative organisational models, a proliferation of regulations, and a glut of new financial instruments, the focus on the books remained. Or so has been the perception. This picture has. | EasyPC Training Accounting Basics easypc Business Administration Contents Accounting The Accounting Owner s The Balance Double Entry Ledger Trial Profit and Loss Cost of Reporting Period Conversion Conversion partway through Other conversion Accounting Basics Page 2 easypc Business Administration Accounting Basics This booklet is designed to give the reader an overview of general bookkeeping practices and accounting terminology in preparation for EasyPC Training s MYOB accounting or manual bookkeeping courses. As you read through please note that words or phrases underlined appear in a glossary at the back of the booklet The Accounting Equation All accounting entries in the books of account for an organisation have a relationship based on the accounting equation Assets Liabilities Owner s equity Assets Assets are tangible and intangible items of value which the business owns. Examples of assets are Cash Cars Buildings Machinery Furniture Debtors money owed from customers Stock Inventory Liabilities Liabilities are those items which are owed by the business to bodies outside of the business. Examples of liabilities are Loans to banks Creditors money owed to suppliers Bank overdrafts Owner s Equity The simplest way to understand the accounting equation is to understand what makes up owner s equity. Accounting Basics Page