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    Reviewer On Accounting

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    jntvtn7pc9
    The document provides an overview of key accounting concepts, principles, financial statements, the accounting cycle, internal controls, financial statement analysis, and auditing. It defines accounting and its purposes, describes different types of accounting including financial and managerial accounting, and explains important accounting concepts like the accrual basis, matching principle, and materiality principle.

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

    Reviewer On Accounting

    Uploaded by

    jntvtn7pc9
    5 views2 pages
    The document provides an overview of key accounting concepts, principles, financial statements, the accounting cycle, internal controls, financial statement analysis, and auditing. It defines accounting and its purposes, describes different types of accounting including financial and managerial accounting, and explains important accounting concepts like the accrual basis, matching principle, and materiality principle.

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    Reviewer on Accounting

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    The document provides an overview of key accounting concepts, principles, financial statements, the accounting cycle, internal controls, financial statement analysis, and auditing. It defines accounting and its purposes, describes different types of accounting including financial and managerial accounting, and explains important accounting concepts like the accrual basis, matching principle, and materiality principle.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views2 pages

    Reviewer On Accounting

    Uploaded by

    jntvtn7pc9
    The document provides an overview of key accounting concepts, principles, financial statements, the accounting cycle, internal controls, financial statement analysis, and auditing. It defines accounting and its purposes, describes different types of accounting including financial and managerial accounting, and explains important accounting concepts like the accrual basis, matching principle, and materiality principle.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    **Accounting Reviewer**

    1. **Introduction to Accounting**
    - Definition: Accounting is the process of recording, classifying, summarizing, analyzing, and
    interpreting financial transactions and events of an organization.
    - Purpose: To provide relevant and reliable financial information to stakeholders for
    decision-making, planning, control, and performance evaluation.

    2. **Types of Accounting**
    - Financial Accounting: Focuses on preparing and reporting financial information to external
    parties, such as investors, creditors, and regulators, in accordance with generally accepted
    accounting principles (GAAP).
    - Managerial Accounting: Focuses on providing internal management with relevant information
    for planning, controlling, and decision-making within the organization.

    3. **Accounting Principles and Concepts**


    - Accrual Basis Accounting: Recognizes revenues when earned and expenses when incurred,
    regardless of when cash is received or paid.
    - Matching Principle: Matches expenses with revenues in the same accounting period to
    accurately measure net income.
    - Conservatism Principle: Requires accountants to be cautious and conservative in recording
    transactions and estimating amounts to avoid overstating assets and income.
    - Materiality Principle: Only significant information that would influence the decision-making of
    users should be disclosed in financial statements.

    4. **Financial Statements**
    - Balance Sheet: Presents the financial position of the organization at a specific point in time,
    showing assets, liabilities, and owner's equity.
    - Income Statement: Reports the organization's financial performance over a specific period,
    showing revenues, expenses, and net income or loss.
    - Statement of Cash Flows: Summarizes the organization's cash inflows and outflows from
    operating, investing, and financing activities during a period.
    - Statement of Owner's Equity: Explains changes in the owner's equity section of the balance
    sheet over a specific period, including investments, withdrawals, and net income.

    5. **Accounting Cycle**
    - Recording Transactions: Involves analyzing, journalizing, posting, and preparing trial
    balances for all financial transactions.
    - Adjusting Entries: Entries made at the end of an accounting period to ensure that revenues
    and expenses are recognized in the appropriate period.
    - Financial Statement Preparation: Preparation of the balance sheet, income statement,
    statement of cash flows, and statement of owner's equity based on adjusted trial balances.
    - Closing Entries: Entries made at the end of an accounting period to close temporary
    accounts (revenue, expense, and dividend accounts) and transfer their balances to the owner's
    equity account.

    6. **Internal Controls**
    - Segregation of Duties: Separating responsibilities for recording, authorizing, and
    safeguarding assets to prevent fraud and errors.
    - Authorization Procedures: Establishing policies and procedures for approving transactions
    and activities to ensure compliance with organizational policies and regulations.
    - Physical Controls: Implementing measures such as locks, keys, and security systems to
    protect assets from theft, damage, or misuse.

    7. **Financial Statement Analysis**


    - Ratio Analysis: Examining relationships between financial statement items to assess liquidity,
    profitability, solvency, and efficiency.
    - Vertical Analysis: Comparing each line item in a financial statement to a base item to analyze
    its relative proportion.
    - Horizontal Analysis: Comparing financial data across different periods to identify trends,
    changes, and growth rates.

    8. **Auditing**
    - External Auditing: Independent examination of an organization's financial statements and
    accounting records by a certified public accountant (CPA) to express an opinion on their
    fairness, accuracy, and compliance with GAAP.
    - Internal Auditing: Independent appraisal function within an organization that assesses the
    adequacy and effectiveness of internal controls, risk management, and governance processes.

    Accounting plays a crucial role in providing stakeholders with transparent and reliable
    information about an organization's financial performance and position. This reviewer covers
    essential concepts, principles, procedures, and analysis techniques used in accounting.

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