Basic Account

8/4/2019 Basic Account

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Principles of Accounts1


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What is

Principles of Accounts 1 ?

The module covers:

Bookkeepingand

Accounting

for Sole Traders

(and Partnerships?)


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What is

Bookkeeping & Accounting ?

Bookkeeping

recording the

transactionsof an organization

Accounting

analysis of theperformanceof an organization


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What isBookkeeping 1 ?

You have 10.

Your mother/father/aunt

gives you 100 because

today is your birthday.

You go with your friends

to celebrate your birthday.

You have 15 left after the

celebration.

How much money did you

spend?

In businesses, all of this

would be recorded !

Books would be kept of

all your (financial)

activities !!


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the keeping of Accounts

the keeping of accounting

records

Accounting records are kept

in Books or Ledgers

In businesses all transactions

are recorded

Book-keeping is simply

keeping the records of

business transactions Records are kept ofall

the (financial) activities


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record important, useful information.

the information must be recorded

accurately

it is routine It isrecording

It is accounting for business

transactions

Examples of transactions: sale/purchase of goods/services

every sale, etc., is shown

in money

Accounts are kept ofall

the (financial) activities

Book-keeping isoften known as

Double entry


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What is Accounting 1?

Providing financial information

in an organization

objectively

consistentlyprofessionally

conservatively valued

to enable management to

perform three functions recording

analysis

control


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Using financial information toanalyse

the performance of management

of (and inside ) an organization

objectively consistently

professionally

with reliable techniques for

internal managementcontrol

and comparing overallperformance of

the organisation

with (for example)other organizations


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Obtaining finance (capital) formanagement of an

organization

Forecasting

management/departmental/organizational performance

Checking actual performance

against planned/forecasted

performance Auditing claims (claimed

performance) of organizations

etc.


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What is

Bookkeeping and Accounting? Accounting is

very business-like

very professional

You must do/be the same

Keeping accounts:

keeps checks on customers

and suppliers

leads to preparation of

overall, summary statements

TheseFinancial Statements are

information to the business.


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What is

Bookkeeping and Accounting?

We cannot keep Accountingrecords

withoutdocuments (proof of transactions)

sales, purchases, banking (payment and receipts)

documents these aresource documents

thisdocumentary evidence:

tells/shows us the actual transaction

shows what has happened

Accounting records:

show the impact of these transactions on a business

show what these transactionsmean to a business


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Advantages of studying this

subject To be well-prepared for

future career development

Allmanagers needaccounting

Easier to find a job

Allorganizations needaccounting

Closely related to daily life.


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Possible Future Career

Development 1

Pass the professional exams

with Exemptions

University Graduates

Pass the professional exams

No exemptions

Non-University Student

Accountant

(ACCA/CIMA/CPA)


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Possible Future Career

Development 2

Pass other management exams

with Exemptions

University Graduates

Pass other management exams

No exemptions

Non-University Student

Manager

(Business, Public Sector, etc)


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Exam (Modules) to be

completed in the three years

Semester One Semester Two

Principles of

Accounts 1

Intro. toCost andManagement

Accounting

Principles of

Accounts 2

Management

Accounting

Financial

Reporting

Strategic

Management

Accounting


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Criteria for studying and

succeeding in this subject

Diligent -hardwork

Sensitive to figures

(not necessarily

good at Maths.)

Willing to learnWilling tothink critically


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Any Questions ?

Powerpoint presentation adapted by M C Pratt, St Martins College,

from:Principles of Accounts (Career Talk)

produced by the CNEC Christian College, May 2000.Web page:

http://www.cneccc.edu.hk/subjects/poa/resources/Principles%20of%20Accounts%20(Career%

20Talk) ppt

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Basic Account