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Understanding, Definitions and Accounting Equations

Accounting is a form of presenting information derived from transactions and the result (output) is financial statements Economics tuition in Singapore. Judging from the benefits of accounting, there are two interests, namely internal interests, and external interests.

Financial Statements

The balance sheet is one of the results of the accounting process that shows the position of the composition of the company's assets, liabilities, and capital.

The definition of accounting includes a definition that includes the accounting process that cannot be carried out without a streamlined process. Accounting products in the form of financial statements include two reports, namely a balance sheet and a loss and income statement. From these two reports, periodic reports on changes in the capital can be prepared.

The balance sheet informs things related to real estimates, including assets consisting of current assets, fixed assets, and liabilities and capital.

Meanwhile, the profit and loss statement is prepared periodically which concerns matters relating to income, cost of goods sold, marketing costs, general expenses, and net income.

A balance sheet is a financial report that is made periodically and shows the financial position, namely the state of assets, debt, and capital on a periodic basis.

The title of the balance sheet states the company name, balance sheet words, and balance sheet date.

Two forms of balance sheet show how the ending capital is calculated, namely by taking into account the initial capital, additional capital, net profit (loss), and personal taking (prove).

The balance sheet in general consists of the development of a recording system for accounting equations or so-called accounting equations. The development of this recording system if we relate it to studying the basics of accounting, the trial balance data which contains real forecast data is the basic material for the preparation of the balance sheet.

The next level of understanding that must be developed and explored is the understanding of the background of each component and balance sheet elements included in or under the same heading.

Improper placement of the same components and elements can be fatal.

The Fatalities Include:

The balance sheet does not become informative; the resulting arrangement cannot achieve the desired goal in accordance with the principles of writing a balance sheet, interested parties cannot take advantage of the depth of the balance sheet. Likewise, the understanding in the next part of the module, namely Module 2, is about the subject matter of income statement financial statements.

Putting the balance sheet elements in the right headings means implementing the principles of writing balance sheet financial statements. The results obtained are that the balance sheet can be used properly. Correct balance sheet arrangements can be used as material for decision-making by the leadership and shareholders.

Estimates and Ledgers

A journal is a basis for recording and is able to be a source of financial information for the steps of the accounting process as well as to be used as a source of information in case of errors in the background regarding all accounting information

Accounting Cycle

After the recording process, the next steps in completing the accounting cycle work which will produce financial reports include the following steps:

The general ledger is the compilation of all estimates or accounts generated by transactions that arise in the company. Data in the ledger can be cross-corrected with journals. In addition, data from a set of ledger estimates is the most important source of information for knowing real and nominal estimates that are generated as well as during a period.

The ledger account balances are the material for preparing a trial balance or Trial Balance.

1. Prepare a Trial Balance, which summarizes the debit or credit balance

2. Compile data for adjusting, namely collecting and obtaining

3. Worksheet, namely making adjustments to the data in the trial balance with

4. Preparing Financial Statements, namely through the data contained in

5. Providing and closing accounts, namely recording posts

6. Readjust the Trial Balance after closing, i.e. to check

7. Readjusting accounts, namely making adjusting entries


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