Basic Accounting

Author: Chen Bin
Publisher:
Publish Date: 2006-03-01
Features: The content of this book includes: I, II, III, IV, V, VI, VII, VIII, and XIII.
I refers to a concept, namely the concept of accounting.
II refers to: The two major basic functions are accounting and supervision; the words "debit" and "credit" are accounting symbols; "debit side" and "credit side" are the two basic directions of accounts.
III refers to the three tasks of accounting: bookkeeping, financial calculation, and financial reporting; the three accounting elements that reflect the financial position of the enterprise are assets, liabilities, and owner's equity; the three accounting elements that reflect the operating results of the enterprise are revenue, expenses, and profit; the three types of accounting vouchers are collection vouchers, payment vouchers, and transfer vouchers; trial balance includes three aspects: the balance of opening balances, the balance of current period transactions, and the balance of closing balances; the three basic accounting statements are the balance sheet, income statement, and cash flow statement; the three components of the financial accounting report are accounting statements, notes to accounting statements, and financial condition statements.
IV refers to: Accounting has four characteristics; the four major assumptions of accounting are accounting entity, going concern, accounting period, and money measurement; accounts have four monetary elements: opening balance, current period increase, current period decrease, and closing balance; parallel posting has four key points: same basis, same direction, same time, and same total amount.
V refers to the five links of accounting: identification, measurement, calculation, recording, and reporting; accounting subjects are classified according to economic nature, divided into five categories: asset, liability, owner's equity, cost, and profit and loss.
VI refers to the six major accounting elements of accounting, namely assets, liabilities, owner's equity, revenue, expenses, and profit (can also be divided into three plus three).
VII refers to the seven special methods of accounting: setting up accounting subjects and accounts, double-entry bookkeeping, preparing and reviewing accounting vouchers, recording accounting ledgers, cost calculation, property inventory, and preparing financial accounting reports.
VIII refers to the eight aspects of accounting ethics: dedication to the job, honesty and trustworthiness, objectivity and fairness, integrity and self-discipline, adherence to standards, participation in management, improving skills, and strengthening service.
XIII refers to the thirteen principles of accounting: objectivity principle, relevance principle, clarity principle, consistency principle, comparability principle, timeliness principle, matching principle, historical cost principle, accrual principle, prudence principle, the principle of distinguishing revenue and capital expenditures, materiality principle, and substance over form principle.