Scribd Logo
Upload

Welcome to Scribd!

  • 41 views

    Financial Accounting Reflection Note

    Uploaded by

    Srinivasan C
    Accounting summarizes monetary transactions and aids decision making. Financial statements include the profit and loss statement, balance sheet, and cash flow statement. The profit and loss statement analyzes profit and loss, the balance sheet identifies assets and liabilities, and the cash flow statement provides accounting information on transactions and events. Forms of business organization discussed include sole proprietorships, partnerships, limited liability partnerships, and joint-stock companies. Assets are classified as either non-current/long-lived assets like property, plant and equipment, or current/short-lived assets like inventory, receivables and cash. Liabilities are also classified as either non-current like long-term borrowing or current like trade payables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Financial Accounting Reflection Note

    Uploaded by

    Srinivasan C
    41 views3 pages
    Accounting summarizes monetary transactions and aids decision making. Financial statements include the profit and loss statement, balance sheet, and cash flow statement. The profit and loss statement analyzes profit and loss, the balance sheet identifies assets and liabilities, and the cash flow statement provides accounting information on transactions and events. Forms of business organization discussed include sole proprietorships, partnerships, limited liability partnerships, and joint-stock companies. Assets are classified as either non-current/long-lived assets like property, plant and equipment, or current/short-lived assets like inventory, receivables and cash. Liabilities are also classified as either non-current like long-term borrowing or current like trade payables.

    Original Title

    FINANCIAL ACCOUNTING REFLECTION NOTE

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Accounting summarizes monetary transactions and aids decision making. Financial statements include the profit and loss statement, balance sheet, and cash flow statement. The profit and loss statement analyzes profit and loss, the balance sheet identifies assets and liabilities, and the cash flow statement provides accounting information on transactions and events. Forms of business organization discussed include sole proprietorships, partnerships, limited liability partnerships, and joint-stock companies. Assets are classified as either non-current/long-lived assets like property, plant and equipment, or current/short-lived assets like inventory, receivables and cash. Liabilities are also classified as either non-current like long-term borrowing or current like trade payables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views3 pages

    Financial Accounting Reflection Note

    Uploaded by

    Srinivasan C
    Accounting summarizes monetary transactions and aids decision making. Financial statements include the profit and loss statement, balance sheet, and cash flow statement. The profit and loss statement analyzes profit and loss, the balance sheet identifies assets and liabilities, and the cash flow statement provides accounting information on transactions and events. Forms of business organization discussed include sole proprietorships, partnerships, limited liability partnerships, and joint-stock companies. Assets are classified as either non-current/long-lived assets like property, plant and equipment, or current/short-lived assets like inventory, receivables and cash. Liabilities are also classified as either non-current like long-term borrowing or current like trade payables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    FINANCIAL ACCOUNTING REFLECTION NOTE

    What is Accounting? 
    It summarises monetary transactions that identify and examine the information and
    aids optimal decision-making.
    Various financial statements:
     Profit and Loss statement  to analyze profit and loss
     Balance sheet  to identify Assets and Liabilities.
     Cashflow statement  to give accounting information like transactions and events
          
    Journal Entry  Only transactions that was recorded in a business.

    Ledger Posting  Account-wise summary recording for the year.

    Trial Balance Statement that provides the stats of initial assets, liabilities, equity, incomes
    & expenses details.

    Forms of Business Organizations:

    o Sole Proprietorship
     Single owner responsible for all assets and liabilities
     Assets were at risk
    o Partnership
     Joint ownership with people ranging from 2-100
     Follow 1932, the partnership act for legal support
    o Limited Liabilities Partnership
     Follows LLP Act 2008, India
     No Assets were at risk
    o Joint-stock Company
     Follows Companies Act-2013
     No limit on # Shareholders
     Governed by Board of Directors

    1
    Financial statements record every business transaction involved during a financial year from
    April 1 and ends on March 31.

    2
    Assets: Anything that adds futuristic monetary benefits or economic value or can provide
    you money later.

    Assets are of two types:

    1. Non-Current Assets (Long-Lived):

    If assets exist for more than 1-year, the asset will be considered a non-current asset.

    Various Non-current Assets are

    i. Goodwill (Intangible assets)


    ii. Capital work in progress (Construction-WIP)
    iii. Property plant, Equipment (Industry)
    iv. Tax Assets, Others (benefits in future= Income Tax – Companies Tax)
    v. Financial Assets (Bonds, Shares, Financial Cash)
    vi. Other Intangible Assets
    2. Current Assets (Short-lived):

    Various Current Assets are

    i. Financial Assets (Investments, Receivables, Cash, bank balance).


    ii. Current Assets, Inventory (Raw material, WIP, finished goods, store, and spare parts)
    iii. Current tax Assets TDS+ Advance tax.

    Liabilities: Any claim must be paid against the assets to the supplier, bank, or other loans
    provided by a business entity.

    Liabilities are of two types:

    1. Non-Current Liabilities:
     Financial lease, Tax Liabilities, Financial borrowing, and others.
     Provisions (Expected outflow of money in future).
    2. Current Liabilities:
     Financial liabilities (borrowing and Trade payables), provisions, Current Tax
    liabilities, and others.

    You might also like