accounting equation, accounting branches, asset, liabialities, revenue, expenses, owners equity
TRANSCRIPT
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Welcome To Our Presentation
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Abdus Samad Sadi 101160 25Mushrat Ahmed 101160 13Rakibul Hassan 101160 17Mashiath Mahtarin Chowdhury 101160 32Abu Salek Suhan 101160 02
Presenters Are Army Institute of Business Administration, Sylhet
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Branches of AccountingFinancial Accounting
Government Accounting
Social Accounting
cost Accounting
Auditing
Managerial Accounting
Forensic AccountingTax Accounting
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AssetAssets are sometimes defined as resources or things of value that are owned by a company or country
Assets have different types1. Current Assets2. Long –Term investment 3. Property ,Plant and Equipment4. Intangible Assets
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Example of AssetsCash
Supplies Acc
ounts
ReceivableInve
ntory
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Current AssetsCurrent Assets are which assets company expected to convert
to cash or use up within one year or its operating cycle.
Cash Accoun
ts Receivable
Supplies
Prepaid
Insurance
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Long –Term investment It is n generally investment in stocks and bond of other
companies that are normally held for many years
Stock Investm
ents
Investment in real
estate
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Property ,Plant and EquipmentThis assets are long useful lives that a company is
currently using in operating a the business.
Building
Land
Equipment
Furniture
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Intangible AssetsCompanies Long-lived assets that do not have physical
substance.
Goodwill
Patents
Tread Mark
Copy Right
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LiabilitiesLiabilities are claims against assets
that is existing debts and obligations.Liabilities have different types1. Current Liabilities 2. Long –Term Liabilities
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Example of LiabilitiesAccounts Payable
Notes
Payable
Bonds Payab
le
Interest
Payable
Unearned
Service Revenu
e
Salaries & Wages Payable
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Current Liabilities Current Liabilities are those which the company is to pay within
the coming year or its operating cycle.
Accounts
Payable
Notes Payab
le
Salaries & Wages Payable
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Long –Term LiabilitiesLong –Term Liabilities are those which company expects to pay
after one year.
Mortgage
Payable
Long –term debt
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RevenueThe gross increase in owner`s equity resulting from business activities enlarged into for the purpose of earning income.
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Service
Revenue
SalesReven
ue
SalesDiscou
nt
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ExpensesExpense are the cost of
assets consumed or service used in the process of
earning revenue.
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Rent Expenses
Salaries & Wages
Expenses
Interest
Expenses
Supplies
Expenses
Depreciation
Expenses
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Accounting Equation A =L +OE
Assets= Liabilities+ Owner`s Equity
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Expanded Accounting Equation
Assets= Liabilities+ Owner`s Capital – Owner`s Drawings +
Revenue - Expenses
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Owner`s EquityThe ownership claim on total asset is owner`s equity. It is equal to total assets is owner`s equity. It is equal to total assets minus total liabilities .For Example: Asset- Cash- 10,000
Building- 50,000 Land - 30,000
Equipment - 5,000
95,000
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Owner`s EquityLiabilities- Notes Payable- 5,000 Accounts Payable- 5,000
10,000Owner`s Equity= Asset – Liabilities
= 95,000- 10,000= 85,000
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