Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 10 views

    POA

    Uploaded by

    miracarons
    The document provides information on the roles of accounting and accountants, professional ethics, accounting theories, accounting histories, accounting elements, internal controls, and discounts. It discusses how accounting provides information for stakeholders to make informed decisions and how accountants set up accounting systems and are stewards of the business. It also outlines key concepts like materiality, consistency, and going concern.

    Copyright:

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

    POA

    Uploaded by

    miracarons
    10 views8 pages
    The document provides information on the roles of accounting and accountants, professional ethics, accounting theories, accounting histories, accounting elements, internal controls, and discounts. It discusses how accounting provides information for stakeholders to make informed decisions and how accountants set up accounting systems and are stewards of the business. It also outlines key concepts like materiality, consistency, and going concern.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides information on the roles of accounting and accountants, professional ethics, accounting theories, accounting histories, accounting elements, internal controls, and discounts. It discusses how accounting provides information for stakeholders to make informed decisions and how accountants set up accounting systems and are stewards of the business. It also outlines key concepts like materiality, consistency, and going concern.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views8 pages

    POA

    Uploaded by

    miracarons
    The document provides information on the roles of accounting and accountants, professional ethics, accounting theories, accounting histories, accounting elements, internal controls, and discounts. It discusses how accounting provides information for stakeholders to make informed decisions and how accountants set up accounting systems and are stewards of the business. It also outlines key concepts like materiality, consistency, and going concern.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    THE OR IE S

    Role of accounting:Provides accounting information for stake holders to


    make Informed decisions regarding the managementof resources
    & performance of business.

    Role ofaccountant: To prepare & provide


    accounting information for decision

    making. Accountants up
    set an
    accounting information system (Als) & become

    stewards business.
    of

    PRO FESS 10 NAL E TH IC S

    ethical accountant andis objective.


    has
    integrity
    ·
    an

    integrity:Straightforward & honestin all professional relationships.


    objective:will notletbias, conflictofinterestor undue influence of others
    override their professional judgement.

    ACCOUNTING THE ORIES

    accounting entity:activities of a business are separate from the actions of the


    owner. All transactions are recorded from 400 of business.

    accounting period:life of business is divided into regular time intervals.


    TB, FS

    consistency:once an accounting method is chosen, itshould be applied to all


    NCA
    <depreciations future accounting periods to enable meaningful comparison.

    going concern:business is assumed to have indefinite economic life unless


    TB, FS
    there is a credible evidence thatmay close itdown.

    historical cost:transactions shouldbe recorded atoriginal cost.

    matching concept:expenses incurred mustbe matched againstincome earned


    expenses
    in the same period to determine profitof the period.
    TR
    A CC0 UNT, NG H50R
    +
    I ES

    materiality concept:transaction is considered material ifitmakes a difference to


    NCA(capital & revenue
    expenditure)
    decision-making process.

    monetary:only business transactions thatcan be measured in monetary terms can be

    recorded.

    objectivity:Accounting information recorded must be supportedby reliable & verifiable

    evidence so FS will be free from opinions & biases.

    prudence concept:accounting treatmentchosen shouldbe the one that leastoverstates


    inventory,
    & leastunderstates liabilities & losses.
    TR assets & profits

    * accural basis of
    accounting:
    income, expense

    * revenue recognition:
    income

    CASH US CREDIT TRANSACTIONS

    is made
    Cash: Payment atthe same time or immediately during a cash
    sale I purchase.

    credit: paymentis delayed or postponed during creditsale/purchase.

    difference in the timing payment.


    of
    IS
    A

    accounting information system (AIS) is a system bussiness uses to collect, store,


    & process accounting data. All has been computerised

    source document:provides proof thattransactions have occurred.


    b
    journal:provide info to record in a journal.
    ↳ like a diary, daily record transactions organised by

    ↳
    of

    transaction dates.

    ledger:posted individual
    to ledgers accounts.

    ↳ consolidation ofall transactions relating to a specific ALICEitem.

    trial balance:summary of ending balances of each ledger account


    ↳notrecorded/wrongly recorded will be adjusted by additional
    journal entries which will be posted to
    the ledger.

    SF Performance:Provides reporton income, expenses & profit/loss

    SFPosition:provides on
    report assets, liabilities & equity.

    SOURCEDOCUMENTS

    Receipt:Acknowledges paymentreceived from customers immediately


    after business sold goods/provided services.

    Remittance:Informs creditsupplier payment


    by cheque has been made

    advice for a specif invoice.

    Invoice:Informs creditcustomers of amount owed after the business sold


    goods or provided services on credit.

    credit note: Reduces amountowed creditcustomers


    by who were previously
    overcharged or have returned goods.
    DebitNote:Increases amountowed by creditcustomers who were previously
    under charged.

    Paymentvoucher:processes paymentto creditsuppliers -> approved by authorised personnel


    or
    supportedby original
    Supplier'sinvoice.
    Bank Statement:Checks & tallies againstthe business records of its cab
    account.
    ACCO UNTING ELEMENTS

    assets:resources a business owns or controls thatare expected to

    provide future benefits.

    liabilities:Obligations swed by business to others. Expected to be settled in


    the future.

    equity:claim by owner on of business.


    the netassets

    income:amounts earned through activities of business. (Revenue & other

    incomel

    expenses: costs incurred in operation of business to earn income.

    accounting equ: Assets Liabilities Equity


    +
    -

    expanded equ:assets Liabilities


    : + (capital + (income -

    expenses -

    drawings)

    double entry
    each transaction will affectatleast 2 accounts.

    atleastone will be debited


    atleastone will be credited

    DIS COUNTS

    Trade disc: reduction to listprice


    encourages cust to buy in bulk, their patronage & loyalty.

    Cash diss:reduction to invoiced price

    encourages creditcust to pay early within specifiedtime.


    ↳ discountallowed/discountreceived.
    Revenue expenditure:

    capital expenditure:

    INTERNAL CONTROLS

    0 F C A S H

    segregation of duties:septrate cash handling & recording duties

    among differentemployees so thatno


    single person has
    control over the entire cash process.

    -receive & deposit


    cash

    -authorist invoices for & processes


    payment payment to suppliers

    -write authorise creants

    custody ofcash:secure cash & cheques in a locked storage


    -Limit
    access of cash to authorised personnel
    -provide combinations, passwords or other access codes to

    authorised personnel
    -
    Deposit can daily into bank to minimise amount of cash

    kept overnight business location.


    at

    Authorisation:obtain approvals for all payments from authorised


    personnel
    -Require atleast
    two persons & approve all
    to review
    payments
    Require valid supporting documents for all
    payments
    -

    Bank reconciliation:Compare business' records with the bank's


    records to identify items thatcaused the

    differences between the ending balances in the

    business cash & bank acc &I bank statement.


    -

    directdeposits -dishonoured cheques


    -
    direct
    payments -errors made by business
    -cheques yet
    not presented or bank.
    -

    deposits in transit

    You might also like