회계 기본 영어 financial Elements 회계 거래 회계 기초 accounting English, financial elements

Accounting is a process for the collection, processing and communication of financial information. It involves recording, analysing, interpreting and reporting data from transactions.

Financial Elements

 

1. Assets

: A Present economic resource controlled by the entity as a result of past events.


• cash
• stock
• Land and building
• equipment, furniture, vehicles, machinery
• Debtors(amounts owed to the entity by its customers) 채무자
• patents
• copyright
• Prepaid Expense
• Accured Revenue 미수수익
• Loan to
• Accounts receivable
• petty Cash in advance
•Goodwill

2. Liabilities

: A present obligation of the entity to transfer an economic resource as a result of past events.

• Bank overdraft
• Mortgages, bank loans(loan from)
• Creditor(amounts owned by the business suppliers)
• Prepaid Revenue(RRIA; revenue received in advance but not earned)
• Accrued Expense(Expense incurred but not paid the invoice)
• Expenses Payable(Lease Liabilities, tax payable…)
• Accounts Payable
• Tax payable
•GST collected

* Assets & Liabilites  Classification

• currents assets : expected to be converted to cash within a year (CA)
• non-currents assets : asset which a business expects to hold more than a year (NCA)
• current liabilities : due and payable within one year (CL)
• non-current liabilities : due and payable after one year or more (NCL)

3. Owner’s Equity

: total assets - Liabilities(net assets)
Owner’s interest in the business

• Capital: Contribution to the business by the owner
• Earnings: Net profit or loss
• Drawing: Any identifiable asset withdrawn out of the business by the owner for private use.
(Nagative owner’s Equity)

 

 •Nagative OE: drawings


* Account Equation

Owner’s Equity (OE) = Assets (A) - Liabilities (L)
A= OE + L

 

4. Revenue

: total income generated by an individual, company, or organization from its main business activities. It represents the amount of money earned before accounting for any expenses or costs.

• Sales
• Dividents
• Interest earned
• Fees received
• Rent receivex
• Commission received
• Discount received
• profit on Disposal of Non current Asset
• Sales Returns(환불) : nagative revenue

5. Expense

: Cost of operations incurred by a business in its pursuit of generating revenue

• Wages
• Advertising
• Purchases
• Bank charges
• Discount given
• Interest paid
• Rent paid
• Vehicle repair
• Doubtful Debts
• Bad Debts
• Loss on Disposal of Non Currnet Assets
• purchase Return: nagative expense

* Assets, Liabilities, Owner’s Equity
for Balance Sheet  
* Revenue, Expense for Income Statement


회계 기본 영어 accounting, Bookeeping, Double Entry

회계 기본 영어 accounting, Bookeeping, Double Entry