Accounting and Financial Statement
Accounting and financial statement
• Business going concern- dobry interes = IT WILL CONTINUE INTO THE FUTURE Current market value of its fixed assets is irrelevant, they’re not for sale. Fixed assets-środki trwałe.
• NET BOOK VALUE->>Historical cost accounting = assets at original purchase price –accumulated depreciation charges. WARTOŚĆ KSIĘGOWA NETTO historyczna kalkulacja kosztów = aktywa w oryginalnej cenie zakupu-zgromadzone odpisy amortyzacyjne
• In Times of inflation historical cost accounting: Understates the value of appreciating assets such: lands BUT Overstates profits as it doesn’t record the replacement cost of plant or stock. Pomniejsza wartość doceniając aktywa tj: Ziemia ALE Zawyża zyski, ponieważ nie odnotowują kosztów odtworzenia maszyn lub akcji.
3 financial stetements In annual raport of companies:
• The profit and loss account(income statement) shows revenue and expenditure. Give figures for total sales or turnover and costs and overheads. Profits goes to: the government in taxation / shareholders as a diviedend/ part is retained by company. • The balance sheet shows: a company financial situation on a particular date, the last day of financial year. Lists: - assets – liabilities – shareholders funds( kapitały, fundusze)
Assets= debtors( należności) will be paid Liabilities= payable accounts(wypłacalne konta) have to be paid
• The source and application of funds statement , the statement of changes in financial position= Shows the flow of cash in and out of the business between balance sheet dates.
➢ Dobule-entry bookkeeping- all transaction are entered as a credit in one account and as a debt in another.
ASSETS = LIABILITIES + OWNERS EQUITY OWNERS EQUITY or NET ASSETS = ASSETS – LIABILITIES
Include: Share capital – money received from the issue of shares
• Business going concern- dobry interes = IT WILL CONTINUE INTO THE FUTURE Current market value of its fixed assets is irrelevant, they’re not for sale. Fixed assets-środki trwałe.
• NET BOOK VALUE->>Historical cost accounting = assets at original purchase price –accumulated depreciation charges. WARTOŚĆ KSIĘGOWA NETTO historyczna kalkulacja kosztów = aktywa w oryginalnej cenie zakupu-zgromadzone odpisy amortyzacyjne
• In Times of inflation historical cost accounting: Understates the value of appreciating assets such: lands BUT Overstates profits as it doesn’t record the replacement cost of plant or stock. Pomniejsza wartość doceniając aktywa tj: Ziemia ALE Zawyża zyski, ponieważ nie odnotowują kosztów odtworzenia maszyn lub akcji.
3 financial stetements In annual raport of companies:
• The profit and loss account(income statement) shows revenue and expenditure. Give figures for total sales or turnover and costs and overheads. Profits goes to: the government in taxation / shareholders as a diviedend/ part is retained by company. • The balance sheet shows: a company financial situation on a particular date, the last day of financial year. Lists: - assets – liabilities – shareholders funds( kapitały, fundusze)
Assets= debtors( należności) will be paid Liabilities= payable accounts(wypłacalne konta) have to be paid
• The source and application of funds statement , the statement of changes in financial position= Shows the flow of cash in and out of the business between balance sheet dates.
➢ Dobule-entry bookkeeping- all transaction are entered as a credit in one account and as a debt in another.
ASSETS = LIABILITIES + OWNERS EQUITY OWNERS EQUITY or NET ASSETS = ASSETS – LIABILITIES
Include: Share capital – money received from the issue of shares