BASICACCOUNTINGBASICACCOUNTING

DEFINITION OF ACCOUNTING

Accounting is a process :  Identify  Recorded and classify  Summarize  Report  Interpret

Management finance

Finance definition  Process to ensure so that accepted financial resource and spent with way the best in order to meet organisational objective.

InterEst : i. Ensure corporate goals achievable  objective maximize shareholder wealth, maximize profit & minimize cost.

ii. Achieve the financial objective  Manage fixed asset and current asset nicely  Ensure cash flow can fill vision and corporate goals  Planning finance according to company fund suitability  Planning cost

iii. Financial resources usable with best possible.  Control financial resource flow and business spending nicely.

iv.Find alternative investment which promises return that high and reduce loss risk.  Get investment return rate and profit that overtop some thing investment which made.

v. Accelerate turnover.  Having fair opportunity to accelerate business working capital

Category asset, liability, owner's equity, cost and result

Asset management :  Finance department in firm with role manage assets that possessed byfirm.  Asset purchase involves process and further until asset written off.  Firm assets consisting of fixed asset and current asset.  Example : Fixed Asset – land, building, and other. Current Asset – Cash, stock, and other

Liability management : Manage liability in business. For example such as manage liability on:  shareholder – distribute profit  bank – loan payment  supplier – explain credit buying  Current liability – repayment period < 1 years.  Example : working capital management

 Long-term liability – repayment period > 1 years.  Example :(company capital structure policy)  How long something liability should be held.  How many something liability that wish to be held.  Management efficiency

Owner equity management:  Get source of fund – through loans from financial institutions with interest cost that minimum  Identify type of investment that wish to be invested.  Identify how many rate of return that desired.

 Capital management fall into two namely: a. Capital financing – loan long-term b. Equity financing – stock, premium capital and income hold up.

Expenditure :  Expenditure is all cost which involved in business for example worker's salary, rate of payment, rent, insurance a nd so on.

Revenue management :  Profit is return that achieved company investment income supply something accounting period.  How many dividend that want given to shareholder.  Profit that there is has to be distributed

 How many that profit want to be invested again.  Profit management efficiency ensure company survival.  To maximize shareholder wealth.

functions and result : = income statement = key count – count =cash flow

Income statement :  Items that included was the result or income to businesses and expenditure which involved to get revenue on.  Purpose: to report success or profit ability in company business operationor firm in one – an accounting period

Key counts :  Are prepared for see a business financial position at one – a date.  In it listed balance – asset balance, liability, and owner's equity.

Cash flow statement :  Report cash receipt, payment, cash and internal change cash a result of activity – operational activity, investment and financing something organization for the period according to particular format that can coordinate early balance and cash end.

Reference;  NGURUSAN-PERAKAUNAN NGURUSAN-PERAKAUNAN  NISI-PERAKAUNAN NISI-PERAKAUNAN  1-Pen-Gen-Alan-Kepada-Perakaunan 1-Pen-Gen-Alan-Kepada-Perakaunan  02/modul-format-penyata-kewangan.pdf 02/modul-format-penyata-kewangan.pdf  BUKU RUJUKAN PRINSIP PERAKAUNAN

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